• Dec 10, 2008
Rescue, bailout, whatever you want to call it, the bill that would shovel about $15 billion in gov't loans to General Motors and Chrysler is being finalized as we speak. The stumbling block between Congressional Democrats and the White House has been the breadth of power that will be given to a Bush-appointed Car Czar and whether or not automakers will be able to continue their legal fight against the state of California, 17 other states and the EPA over stricter emissions standards.

It appears as if Democrats have conceded to the White House that the Car Czar will be given the power to force either GM or Chrysler into bankruptcy if they're unable to get additional concessions from the UAW and creditors on their own. Likewise, the administration also appears successful in getting Democrats to drop language in the bill that would force any automaker accepting government loans to drop their lawsuits against nearly 18 states pushing for stricter emissions standards.

The bill could be voted on in the House of Representatives as early as today, though may not be voted on in the Senate for several days until Democrats are certain they have the 60 votes required to block a filibuster by Republican senators who oppose it.

Stay tuned folks, as this thing is far from a done deal despite Democrats and the White House coming to an agreement. Senate Republicans now hold the fate of the Detroit 3 in their hands, and we'll know the outcome when the Rescue/Bailout bill hits the Senate floor.

[Source: The Detroit Free Press, Photo by Brendan Hoffman/Getty]


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  • 27 Comments
      • 6 Years Ago
      I wonder how workers in these Toyota,Honda and Mercedes plants are going to react when China and India come over with their factories and set up shop and pay $8.00 an hour.After all,we are in a race to the bottom here!
      • 6 Years Ago
      F*** THE GOP!
      • 6 Years Ago
      The GOP is going to save us! If the democrats really wanted this to pass they should have used the same strategy as the financial bailout. "If we don't do this now, we are all going to die tomorrow."
      • 6 Years Ago
      GOP may keep it from passing, but they're not the only ones who oppose it. Some are even for it. Same goes for Dems.

      Fact is, it will pass in both houses and Bush will sign it.
      jw
      • 6 Years Ago
      MARK MY WORDS...CHRYSLER IS DEAD!!! GM AND FORD WILL SURVIVE ALTHOUGH THEY WILL ONLY ACCOUNT FOR 20% OF THE US MARKET...UAW IS KAPUTZ!! TIME TO TAX GAS..
        • 6 Years Ago
        @jw
        Weve been marking your words since posts of your show you making the same comments for well over a year and a half, i got sick of all your Chrysler posts about June of 2007. So, if you keep saying Dodge is dead, eventually you will be right whether its 10 years or 100.

        September 7th as an example; "well the writing is on the wall for current chrysler execs...start packing baby!!!!!"

        Your like Nostradamus smart with your predictions, hang in there.
        • 6 Years Ago
        @jw
        Troll!
        • 6 Years Ago
        @jw
        Cargod, you might try reading my previous posts, as I did yours to see if your argument makes sense, lousy comeback. Pretty obvious I am not a Chrysler employee. I own a Honda Civic (actually my 09 makes that 2 Civics this year), Harley (owned about 7 Harlies over past 10 years), 2 Dodge (Viper and Challenger but also owned about 8 pickups in past 12 years), Hummer 2 (also owned an H3 previously) and a Buick. I didnt get them in trouble, I buy a new car once a year. Few people donate to them as much as I do. Not that your post makes any sense anyhow. And shut the caps lock key off please, even the average 70 year old lady on AOL knows better nowadays.
      • 6 Years Ago
      Devin, dude... Lutz is to blame for all of this. When I think conservative micromanagement, I think Lutz. Of course GM has always been about following, not leading. From the time they cheated Ford in the 1910's to their current bid to copy Toyota. Put out something original already.
        • 6 Years Ago
        More automotive urban legends. Exactly how did General Motors "cheat" Ford?
      • 6 Years Ago
      They're still 'dissing' them, bro. Make no mistake about it. That's because the GOP almost always votes against minimum wage and proper benefits for decent, hardworking people.
        • 6 Years Ago
        Why the hell would the GOP vote for minimum wages? Is it because they don't help? They only cause inflation and/or job loss.
        • 6 Years Ago
        I've always wondered why that is. I mean, it was the party of Lincoln in a bygone era. Yet people who fear change and society progression love the GOP, even if they are poor.

        Seems the Repubs only tactic now is to simply go against everything, whatever is, they're against it. The auto bailout may or not be bad for the taxpayer, and it may or may not be good for domestic industry. Yet they never offer constructive alternatives, just a string of negatives.
        • 6 Years Ago
        @Cameron: I find it hard to describe UAW members as "decent, hardworking people." Unless you consider striking against an ailing company as decent, hard work.

        Autoblog, Apr 17th 2008: "This morning, UAW workers at General Motor's Lansing Delta Township plant in Michigan have began a work stoppage, halting production of the Saturn Outlook, Buick Enclave and GMC Acadia."
        http://www.autoblog.com/2008/04/17/uaw-strike-halts-gms-cuv-production/

        Autoblog, May 5th 2008: "Local UAW contract negotiations aren't going well for General Motors, and today they took a turn for the worst as union members at the automaker's Fairfax assembly plant in Kansas walked off the job at 10AM EST. The bulk of GM's hot-selling Chevy Malibu are produced at the Fairfax plant..."
        http://www.autoblog.com/2008/05/05/uaw-strikes-gm-malibu-plant/
        • 6 Years Ago
        It's obvious that some commenters are only here at Autoblog with a political agenda and care nothing about automobiles at all.
        • 6 Years Ago
        @JZeke: The auto rescue/bailout/bridge loan is bad for the taxpayers, bad for the auto industry, and bad for America.

        1. Bad for the taxpayer: There is a lot of talk about how it would cost more to let the Big 3 fail, and cheaper to offer bridge loans to them right now. Here is the problem. How can anyone say X < Y if X is unknown? Nobody knows how much it would really cost to bailout the Big 3. They were approved $15 billion so far, but no one knows how much more they will be getting when there is a new administration in the White House. With that in mind, all claims of being cheaper to bail them out is nonsense.
        2. Bad for the auto industry: If GM, Ford, and/or Chrysler enter Chapter 11 protection, they can get rid of the UAW and unaffordable union benefits, which will allow the Big 3 to be more competitive. Changing from union to non-union jobs shouldn't be a net loss of jobs -- at least, not much of a net loss if inefficient union workers are replaced by a smaller number of efficient non-union workers. And, as the Big 3 re-emerge from Chapter 11 protection and become lean, mean organizations with world-class vehicles, they will see an increase in market share and profits. In contrast, a bailout can arguably have the effect of prolonging the status quo, which in recent years has meant shrinking market share for the Big 3.
        3. Bad for our country: Our country is over $10 Trillion in debt. Which means every man, woman, and child living in this country owes about $35 thousand. Now, when our country is already in debt, where are we going to find the money to pay $700 billion here and $15 billion there? If we keep printing out money without the means to back them up, we will plunge our country deeper into debt, further devalue our dollar, and lead the economy into a second Great Depression.
      • 6 Years Ago
      Bet the UAW is sorry now it dissed repubs for so long.
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