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Detroit 3 head back to Washington December 5 to offer plan for future


The funds would be distributed by a single overseer, dubbed 'car czar' by politicos

The funds would be distributed by a single overseer, dubbed 'car czar' by politicos

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The heads of the Detroit 3 headed to Washington earlier this month in the hope of securing a second emergency aid package to supplement the previously earmarked $25 billion for more efficient vehicles to meet looming CAFE regulations. Unfortunately for the carmakers, top Democratic legislators, including House Speaker Nancy Pelosi, rejected the proposed bipartisan compromise that would have provided the additional funds. Now the car chiefs will be headed back to Washington December 5 to present their case once again.

The House Financial Services Committee will hold a hearing beginning at 9:30am EST. The members that rejected the previous plan said the Detroit 3 had failed to convince Congress that their companies could be made viable with additional aid, reports Automotive News. Should the officials be satisfied that Detroit has its plans in order, legislation providing the funds could be introduced on December 8.

Speaking at a meeting last week, Pelosi said: “Until they show us a plan, we can't show them the money."

No funds from the first loan package have yet been disbursed, and the new funds were to be targeted more at economic stimulus than green-technology subsidization, though any funds available to Detroit carmakers at this point will be used in any way possible to keep the companies afloat.

With sales at 25-year lows and continuing to fall, it's clear that something must be done. If the carmakers in the U.S. were to simply cease their North American operations, it would result in the loss of about 3 million jobs within the year. That's the sort of snowball-effect economic disaster that would lead to even worse consequences than are already predicted for the faltering U.S. economy, and a threat of that magnitude will almost certainly necessitate government intervention.
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Comments (3)
  1. Last chance GM,Crystler,Ford, You better pull your heads out of your A$$ real quick.
     
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  2. I think that the management of the Big 3 and the wise guys in the UAW union need is to stop and take a look at the situation, assess the opportunities, recognize the dangers...

    I suggest they all jump into their private planes and go to the Virgin Islands for a week-long conference and drink as much champagne and eat as much caviar as possible so they better understand what they'll be missing if they don't take action soon.

    F**kers. As long as they don't get a penny of my money they can all bugger each other at 40000 feet for all I care.
     
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  3. amazing the sentiment towards the big 3. hector did you miss the last bit there? sales are at their 25 year low.. what happened 25 years ago? chrysler needed 3 billion in aid from the government,.. or else go bust. i will admit that the problem is product related.. ford is the one of the 3 that has the most "global" reach and they are doing the best, where chrysler is the most limited to the USA, and they are doing the worst. correlation? the world economy is shit right now but the american economy is abismal. entirely horrible. when the one market you are strong in takes a shit dive.. what do you expect? every automotive company is feeling it. hell.. the darlings of the auto industry.. toyota and porsche.. both profit machines.. are losing money because of crappy american sales.

    now.. lets look back to the japanese and german governments and see how often they have subsidized their domestic companies. lets ignore the fact that germany owns at least 20% of vokswagen group... and you still dont want to give the big 3 money?

    ok lets consider one last thing.. the war.. 2 trillion dollars over 5 years. the big 3? asking for 25 billion. almost 1/1000 th what the war has cost. recent estimates have put the economic toll of losing just ONE of the big 3 at 200 billion in the first YEAR. so... either congress gives them the 25 billion in december,.. or chrysler and/or gm go bankrupt in december and the government has lost 25 billion by the time mid january rolls around ANYWAYS.

    its a shitty situation but i'll tell you whats going to happen: congress has a chance to force detroit to become streamlined (i'm not saying that they are perfect.. they could definitely use a little restructuring), so they will. detroit will promise big changes on dec 5th.. gm will say they are going to scrap hummer, maybe saturn, maybe pontiac.. get rid of a couple MARQUES.. keep the products.. rearange the structure a little.. chrysler.. i dont even know what they could do to show some due diligence to congress.. ford is the best of the 3 right now and is surging forward with very good plans. hell.. you may see the big 3 offer to colaborate on drive trains and technology. id love to see the three companies split to development costs for the Volt.

    but in the end.. they will get their money. because in the grand scheme of things, 25 billion is $83 per american. WOW. BIG MONEY. hector; you're going to change the face of the american economy so that your government can save you $80?

    whats more is.. if they do get the money.. you and people like you.. the people who write off every american car as junk will be even further away from buying those cars.. despite the fact that you helped fund them.

    i know i know... im a socialist canadian.. those views are so unamerican its unreal. blah blah blah. think with your heads. you're country is going to lose that money in december or in january.. but if you lose it in december, you'll still have an automotive industry. even if they come back and ask for another 25 billion in february.. you've saved money as a country.
     
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