GM makes case for aid in new video on YouTube
Click above to watch video after the jump
Congress will take up the question of aid to the automakers this week, and General Motors would like you to know what the consequences might be if the fed doesn't step in and help. U.S. automakers would like an additional $25 billion in aid to supplant the $25 billion in low interest loans they've already been granted for investing in green technology. What's more likely to happen, however, is that restrictions on how those loans can be used get removed and their distribution to the automakers sped up.
The video after the jump, which was produced by GM and is featured on the automaker's Facts and Fiction website, paints a picture of how our domestic auto industry in interconnected with both our national economy and security. It's certainly true that beyond the 239,000 American employed directly by the automakers, there are millions more at risk who work for suppliers and dealerships. Then there are all the other industries that rely on Detroit for their well being, which estimates have determined to equal around 1.7 million jobs. All in, at least 3 million jobs are at risk if Detroit goes under.
While it's certainly true that the Detroit 3 are far from guiltless, there are just as many circumstances beyond their control that are conspiring against them, as well as a certain brand of propaganda in mainstream media that reinforces old stereotypes. You can check out this page on the Detroit Free Press that debunks six of these myths, but what people show know is that Detroit is building desirable, quality cars as we speak. We're likely to hear lots more about this all week as Congress gets down to the business of determining Detroit's fate.
[Source: GM Facts and Fiction, Detroit Free Press]
Reader Comments (Page 1 of 8)
SATCHMO 1:11PM (11/17/2008)
Let 'em burn. Just because they're "suddenly" building reasonably decent cars doesn't make up for the past 30 years. Their time has come. Buh-bye.
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nist7 1:18PM (11/17/2008)
Welcome to the People's Republic of America.
Why don't we just increase everyone's taxes to 50% so that there is
always a government subsidy available in case free-market economics
fail us again in the future?
Hell, why not just nationalize all major industries so we can make
sure that most americans will always be employed?
Seriously...no wonder we are going down the toilet....sigh.....
tuna 1:46PM (11/17/2008)
@nist7
Because some will cry socialism and release scare ads of their own.
Epyx 2:15PM (11/17/2008)
Tuna - I think (hope) nist7 was being sarcastic.
Judy Zik 3:24PM (11/17/2008)
I think the headline on their video should have been...
Collapse is imminent because we DID nothing.
A bailout will just send good money after bad. It will do nothing to cut the number of brands or dealers. It won't cut fat cat salaries and waste. It wont reopen labour contracts. Only bankruptcy would give them the room to do that and force them to stand before a judge and actually show how they can make their companies viable.
bigbear7787 4:12PM (11/17/2008)
There are so many people on this website that are so strongly biased one way or the other...
Everyone forgets to realize with all these government restrictions and rules, almost every company's product will last at least 100,000 miles and is safe enough for almost any incident that will happen.
To blindly state that GM and Ford make crappy cars is just not true anymore. Sure, for a while they did produce horrible cars, but that mentality has been around longer than it needs to be. I don't know of anyone that would buy an american car (besides something like the camaro) just because they have the idea that they are all crap.
Ford is bringing over their entire European line up in what? a year or two? I believe those will sell like hot cakes...
GM IMO is starting to turn things around with the new malibu and volt. They have the Cruze and other vehicles coming out that will also be good cars.
I say let Chrysler die... They are stupid and didn't learn the first time around...
I don't really know where I am going with this... but if you guys believe that Toyota makes superior cars is BS... Honda rules....
Jeremy 5:08PM (11/17/2008)
I can't believe there are people who live in the United States who couldn't care less if one of the biggest companies in the world just flat out collapsed. You know, when AIG and Bear Stearns and others needed money, the Government was there in a matter of seconds. But now, when one of the companies that drives manufacturing in the United States is asking for some, the Government just can't seem to get it together. I hear all the time how the Government shouldn't be bailing out the automakers "because of the bad decisions they've made in the past." Well, if this bailout doesn't go through, the Government can blame themselves for the loss of several thousand jobs. I live in Michigan, and although the failing automakers hurt people more here than do anywhere else, their survival is key to the health of the entire United States.
John D 8:21PM (11/17/2008)
Great to see how GM is investing its last few dollars...
Cash 1:13PM (11/17/2008)
If GM goes under that means 1.7 million people who'd like to work for a NEW american automotive company that isn't tied up with UAW contracts, spotty histories, and retarded management. Let them die. Let new companies rise up, and carry the torch. Giving them money when their current direction is nosediving is incredibly stupid, it will only prolong the inevitable. Poorly managed companies that produce unwanted products DO NOT SURVIVE in a free market. They are the ones that chose to deal with the unions, they are the ones that made so many trucks and SUVs and ignored small cars, they are the ones who are giving million dollar bonuses when the company is operating at a loss.
Let. Them. Die.
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jv2k 1:28PM (11/17/2008)
Yea because that 1.7 million would be able to easily find jobs.
Torqued 1:54PM (11/17/2008)
No, it won't be easy. But it's necessary.
Taylor 3:03PM (11/17/2008)
The idea that "because these companies will file bankruptcy 1.5+ million people will lose their jobs" is ridiculous. Detroit seems to think that if they go bankrupt, Americans will have to walk around with no mode of transportation. They are insanely arrogant.
Americans will continue to buy cars at the same rate they are now +/- a few percentage points. So these American companies will still be in business churning out vehicles. The only difference, is those UAW employees will have smaller salaries and their will be a smaller workforce that is more flexible to the companies needs.
Giving these 3 companies $25 billion because they lead poorly and have an overpaid/unflexible workforce is just putting duck tape on the Titanic.
These companies need to be completely restructured without a Union that holds them hostage.
Ben 3:31PM (11/17/2008)
Make the bailout conditional - money is available if and only if the UAW is dissolved. It works for Honda and Toyota (the more successful motor companies) so why not the big 3?
Also, have a revised business model. Prove to the Gov. that the money would be put into better use instead of the same old legacy model that doesn't work.
Mikeeeee 5:41PM (11/17/2008)
Hey guys don't fret. It's pay back time for the unions. The Big 3 will get the $$$$ they want.
E63AMG 5:40PM (11/17/2008)
what alot of people are failing to recognize is the fact that over the past 20 even 30 years domestic automakers were building vehicles to the demand of this country. We are a huge agricultural nation at least we were. We are also a nation who is developed and tends to follow suit by expanding communities and growing new business'. When you have customers who need trucks and or suv's like they have wanted in the past, you don't simply say "let's not produce trucks or suv's anymore and focus on small cars," even though at the time there wasn't a demand for that. If they were to have done that, customers would have simply said, ok you won't make what we want, we shall go elsewhere equalling the failure of that company. Ever visit the farming areas of the country? like oh i dunno 60-70% of the country all they use in pickups, i grew up in the suburbs and was shocked at how very few people out in the rural areas used cars. Not to mention construction workers who carry large equiptment around with them. I am not saying there isn't any blame to be placed, no, but certainly alot has been done to improve our domestic automakers products. People also need to keep in mind all of the workers who matter, these are their jobs you are talking about, people just like you and me who are trying to earn a living. OH and for those out their claiming all of these companies are taking bonuses... http://www.taipeitimes.com/News/worldbiz/archives/2008/07/17/2003417682 This talks about GM's NO Bonuses for 2008 as well as white collar pay reductions. In the end it does come down to the consumer, money has already been set aside for banks and credit companies who literally go out of their way to cheat consumers and then use that money to have elegant dinners and meetings. Why not take some of this money away from them and give it to our domestic companies who impact other industries and are already selling their other assets off as fast as they can so that massive job loss and failure can be avoided. Did you see the banks doing this......NOPE they just spent money on fun things, look at AIG, GM is looking to take a 100 million dollar loss on thier headquarters in detroit just to ues the money they get from it's sale to pour into the company, why??? because they are trying as hard as possible to survive. our banks and lending companies are just sitting around thinking everyone else will eventually take care of the situation. Not the detroit 3, they are not sure what will happen so they are taking it upon themselves to survive.
Brent 1:14PM (11/17/2008)
Obama would never let the automakers die, too much bad press for Unions.
P.S. Unions suck ass.
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Cash 1:18PM (11/17/2008)
Neither would any other publically elected official. Duh. Too many crybabies.
geo.stewart 1:17PM (11/17/2008)
unions put B.O. in office.
now we'll all be paying someone else's union dues
why not the LS2LS7? 1:53PM (11/17/2008)
Much of Obama's support and gobs of his money came from California, a state not known for its union ties.
He didn't need union support to get elected.
Torrent 2:23PM (11/17/2008)
You da man, brent