The Big Three came back to Washington Tuesday, and this time they seem to have gotten the message about those corporate jets. Now the only question is whether Congress will buy their plea for a bailout before one or more of them goes broke. Instead of the $25 billion they were asking for just two weeks ago, GM, Ford, and Chrysler want $34 billion. But hey, what's $9 billion among friends?
Detroit came to the table this time with plans. GM's seems to be the most detailed, probably because they're in the most trouble. They say they'll cut as many as 30,000 jobs by 2012, close 11 factories, trim about 1700 odd dealers, and sell off Hummer and Saab, while shrinking Pontiac and getting rid of it;'s its Saturn brand completely. And like the other two CEOS, GM's would take a $1 dollar annual salary. Chrysler is in similar straits but is asking for $7 billion rather than the $18 billion sought by GM.
Ford says it can be profitable by 2011, and only needs $9 billion to use if necessary. Ford is in an interesting position here. While all three automakers say they'll focus on making more fuel efficient cars to sell here in the US, Ford already sells a number of such vehicles in other parts of the world. In fact, two Ford cars get better than 40 miles per gallon, with one getting an astonishing 63.6! Sadly, both are diesels, and neither is available here in the US.
Yet as we ponder whether the Big Three's commitment to more fuel efficient cars and leaner operations is real, consider this. The average fuel consumption figure for US cars, minivans, and SUVs stands at 22.6. In Europe the figure is 40.3, and in Japan it's 40.6. Maybe Detroit ought to come up with plans to raise the US number. For years, they've been resisting such calls, arguing the cost is prohibitive. Maybe the need to borrow $4 billion dollars from US taxpayers to survive the rest of the year ought to change that attitude.
One attitude has changed, for sure. The Big Three CEOs will all be driving hybrid vehicles fro Detroit to DC later this week. No more corporate jets, not after people noticed.
So, the question is, did the automakers make their case? You tell me.
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2 comments:
Good article by Robert Weissman on CommonDreams asking us to consider the idea of nationalizing the big 3. I have been concerned about the lies about what autoworkers make. The article points out that wages don't make a big difference in the price of the car. I love the idea of nationalizing the auto industry big 3. Why not? Notice who doesn't get bailed out? The workers, the poor, the near poor (all overlapping groups). The corporate welfare is not free market capitalism. I also like Naomi Klein's view of it all:capitalism in crisis and who is getting bailed out? Note:I have no ideology. I liked the New Deal which I didn't think much about until it got dismantled. (Social security is me.)
Yes this recession is different. First you see people shouting in glee that yes we are in a recession. Then consider the political infighting that we see daily. This infighting causes all parties to give money to whomever in hopes of getting votes during the next election cycle.
Our leaders are not putting our nation’s best interest first. They are selfish imbeciles that need to grow up a play with each other’s toys.
Yes it is true that we see a recession about every three years, and when we do they usually last about 8.5 months. This time politics will bring to the table spending and their denial of the situation won’t get us out of this mess.
http://nomedals.blogspot.com
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