Update: McCain refuses to support bailout scheme for Detroit 3

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Update: McCain refuses to support bailout scheme for Detroit 3

Update: McCain refuses to support bailout scheme for Detroit 3

Update: Senator and Republican presidential candidate John McCain has reiterated his tough stance against supporting a bailout for the Detroit 3 by refusing to lend his backing to proposals that entail federal government guarantees for loans taken out by America’s carmakers.

While the proposals have been varied and abounding from different camps, McCain is consistent with his thoughts on bailing out domestic auto manufacturers. His stance thus far is that it’s not the role of the government to be a crutch to these businesses, a view also shared by current president George W. Bush.

McCain's Democratic rival, Barack Obama, has previously vocalized his support for loan programs for domestic manufacturers, including "loans and tax credits to retool the nation's auto plants and build the next generation of American cars". Obama has also previously spoken about his desire to see the American auto industry at the forefront of technology for next-generation cars, rather than lagging behind as it is now, reports The Detroit News.

General Motors spokesman Greg Martin was apprehensive of McCain's cavalier attitude towards maintaining the auto industry. While McCain had previously stated that guaranteeing loans was like prematurely "predicting failure" in regards to the Detroit 3's efforts, Martin countered that the loans were necessary as domestic manufacturers were doing "nothing short of really reinventing the automobile".

Original: The troubles facing the United States' automobile industry at home and abroad are no secret, with layoffs and plant closures announced almost weekly in recent months.

Senator and Republican presidential candidate John McCain said today that he would not support any government aid for the weakened industry if elected, instead speaking in favor of free trade.

McCain's statement came during a town-hall meeting held at a General Motors plant in Warren, Ohio. That state has felt a significant portion of the impact of the auto industry's recent downsizing, losing nearly manufacturing 250,000 jobs since 2000, reports Automotive News.

Putting government funds into research and development of next-generation technologies could be possible under a McCain administration, but outright subsidization of the industry was ruled out.

How McCain expects free trade to improve the situation in the industry is unclear. He said he supports free trade, but noted that not all trade agreements are fair, and advocated methods to make dealing with violations of such agreements quicker and easier. "I would do everything in my power to make sure that trade practices are fair and equitable," McCain said.
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Comments (11)
  1. I too prefer not to give them a hand unless they change. Anyway I would help the last one standing but not the whole three or four. There will be more new and green jobs out there with both party pushing for Green not just for climate change but for the peoples lifestyle.

    However sometime its takes the government to lead and unite the whole industry to move forward and like always the government will use and aid the best.

  2. wow....

    Thanks for letting us know now.... lets let billions go to Asia and Europe....

    The only company that doesn't have a plan is Chrysler.... Dodge Challenger???? Wow is that a futuristic and classic car..... GM and Ford at least have something in the pip-line... Ford especially.... We helped out Chyrsler back in the late seventies... It worked then why not help the others if needed and they have a plan.....

    What does McCain have planned then???? What industry will we have???? Too many Bushes, Reagan's McCains and Chenny's have ruined our industry in the name of high profit for the CEO and White collar workers....

    Vote wisely people.......

  3. I will vote wisely, for McCain.
    Regardless of how you feel about his stance toward the auto industry, Obama's lack of experience is such a threat that the car industry will be the least of your worries...

  4. Too bad. If it weren't for the Bush administration, we wouldn't need to bail anybody out. We're too busy wasting billions of $$$ in camel driving Iraq. Wait until the airline, auto, rail and trucking industries stop working, then the shit will really hit the fan in the soon-to-be third world U.S. Of course, by then we can all purchase time shares or Club Med vacations in Baghdad. Idiots.

  5. I don't understand what the fear is with the government giving money to the auto industry. If it is done right, you can stimulate the industry again, and the government can make money off of it too. it's called investing, people. the government (and the people) can make more money by investing into the auto industry and reaping the benefits of a stronger industry. and you can push for domestic green jobs by insisting that the requirements for the funding are through very green programs like the volt or higher.

    lets put it this way, do you think the government gave out those stimulus checks out of the good of their heart? the BUSH administration? no... the government feeds off of a strong economy. and that was money they just dropped on a load of people... without stipulating how they had to spend it.

    there aren't enough rich people left in the USA to keep the republicans in office. you've got a country that is sick of war, sick of bush, and all they see in McCain is more bush. then you've got barack who doesn't look like he'll die within his first term, and is actually talking about new things instead of business as usual.

    I think it's going to be within 5%, but I'd be willing to put my money on barack at this point. we'll see in november.

  6. The rich are not the ones keeping the Repulicans in office. They're the people who accept a few table scraps from the wealthy 5% of the U.S. population in the form of tax breaks and are too blind and/or stupid to see that the GOP policies only benefit those making more than $500k per year. Bush has carved away at our civil rights for the past seven years. 9-11 happened on Bush's watch and so too did the Iraq war, current recession, housing, & credit crises. From where I sit, we've become a country of mindless dolts content to yammer away on our cell phones. Just maybe, that's what the GOP wants. Keep the population stupid and they're easier to control.

  7. i don't know about all of this hardball stance on detroit.

    i keep coming back tot he delinquent son analogy. do you beat the delinquent son when the cops bring him home at night? do you kick him out of your house? or do you reward good behaviour?

    I used to be a bastard of a teen.. then my parents offered me good money for good grades. i'm an electrical engineer now. you want to call it bribery, fine. would you go to work if you wern't getting paid? no. would you take on more responsibility for the same pay? no. encourage these companies to do better. like i said before, the german government and the japanese government are in bed with their local companies.. but the USA is a bunch of winners.. not a bunch of losers.. so lets cut them loose if they cant compete? backwards logic. and it only serves to hurt the economy as well. ill come back to it... 2 trillion dollars wasted in iraq and afghanistan on people who for the most part don't WANT your damned help. but incentive programs (in the few billion dollar range) for your domestic automakers to be rewarded for making fuel efficient, high quality, segment leading vehicles?? F*** that.

    way to go america. the top 1% stand on the bones on the lower 99%. as always. do they teach "Red October" in american schools? shame.

  8. Gus lack of experience is a lame argument. McCain's whole life revolves around war, when he bomb bomb bombs Iran its pretty much guaranteed that one of America's cities will get taken out in retaliation. The best way in resolving conflicts is not war anymore, its negotiations and that requires good verbal skills, which McCain does not have.....

  9. Experience...of what, exactly? Okay, so he's been a senator for a while. That's great, except that's completely different from being a president. Neither one has the experience of being a leader. McCain wasn't a leader when he was in the military, and both Obama and McCain have been either national or state senators, where they just would vote (or not) on bills that they didn't read half of the time. McCain's 'experience' that he apparently has doesn't seem to be helping him on having logical reasoning for anything. He still insists on off-shore drilling which will lower gas prices by 5 cents in 2018..great. He also supported a gas tax holiday that would do absolutely nothing for consumers and instead take precious funding away from infrastructure.

    American car companies fell behind in the technology of automobiles as gas prices soared and they do need our help because of that incompetence. While I don't exactly think throwing money at them is a good idea, it's better than just ignoring the absolutely horrible position all three companies are in right now.

  10. Guy seems to be stuck in his party propaganda. So there's no sense in trying there.

    Look, the automakers don't need a bailout yet anyway. Let'em make adjustments. Let'em try. Let'em get desperate. It's good for 'em. Look at how much they have changed since just 2 years ago. They haven't had a change in direction this dramatic ever. Even the transition out of the 70's barges that got 9 mpg wasn't as dramatic as we are going to see in the next 2 years.

    BTW, something like 80% of cars sold in the first 1/2 of this year in the US were 4 cylinders.
    Who would of guessed?

    Some of the horrific losses seen lately are misleading because of write offs and accounting changes. I think a lot of companies are doing this now because its almost expected for co.'s now to have huge losses. Now they are adjusting their budgets with fewer employees and combined research etc. They will look better soon.

    If the new gen cars coming out bomb, then we will need bailouts. All of us.

  11. go mccain

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