... The Bush administration should use its existing authority to provide help to the automakers, Reid said yesterday in a statement, without being specific as to the amount. Congress will also continue exploring ways to aid the companies, the Nevada Democrat said. ...
... The government wants to "ensure the viability of this industry,'' Pelosi told reporters yesterday. U.S. officials also will be "looking out for taxpayers,'' she said. ...
Another huge bailout will ultimately emerge for the stupidity stricken U.S. auto industry. The industry, burdened with; union retirement benefits, high union wages, retooling requirements, and incredibly moronic management will fail unless given a very large influx of capital. [Tiger]
General Motors Corp., Ford Motor Co. and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, a person familiar with the matter said.
The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified because the plan isn't public. In return, the companies would be willing to take steps such as granting stock warrants, the person said.
Ford is also among automakers approaching European governments for 40 billion euros ($51 billion) in loans, Chief Financial Officer Lewis Booth told reporters today after the company posted a $2.98 billion third-quarter operating loss and said it used up $7.7 billion in cash.
How many of us (the Sarah Palin type folks) can remember saying over and over, "these auto manufacturers can never survive paying those wages and giving those benefits!" It seems common sense is dead in most large corporations and, of course, all of government!
Years ago, when I worked for real companies, we had no HR department, no unions, and retirement was left up to the individual. Those companies made money or shut its doors.
Now ... well, you see the results for yourself!