Car wrangle looms in US bail-out

#1
Car wrangle looms in US bail-out

Leaders of the US Democratic Party, which now has a majority in both houses of Congress, have confirmed they are working on a car industry rescue plan.

Democrat congressman Barney Frank said his draft bill would include a $25bn (£17bn) loan for carmakers.

Cont/...
Neo-socialism: alive and kicking in the USofA.
 
#2
whitecity said:
Car wrangle looms in US bail-out

Leaders of the US Democratic Party, which now has a majority in both houses of Congress, have confirmed they are working on a car industry rescue plan.

Democrat congressman Barney Frank said his draft bill would include a $25bn (£17bn) loan for carmakers.

Cont/...
Neo-socialism: alive and kicking in the USofA.
There is a much simpler solution: Require all imported cars to go through the same testing and for the same "testing fees" as are required for US cars to enter Japan. When you add $3000+ to the price of a Toyota Corolla it becomes much less attractive. Would not hurt Jags, Rolls, Bentley as people paying that price can afford the extra price.

Ford and GM are hurting due to huge cost of benefits to retired employees. If they go under the retirees who worked all their lives making cars would be really stuck. Letting US marques compete in a fair marketplace should level tha playing field
 
#3
DavidBOC said:
Ford and GM are hurting due to huge cost of benefits to retired employees. If they go under the retirees who worked all their lives making cars would be really stuck. Letting US marques compete in a fair marketplace should level tha playing field
I believe that is called "globalism returns to bite your ass".

When the US competes on a "level" or "fair" marketplace, I for one shall rejoice. All I see is a rather loaded marketplace where some do as the will, and others are expected to do as they're told.
 
#4
DavidBOC said:
whitecity said:
Car wrangle looms in US bail-out

Leaders of the US Democratic Party, which now has a majority in both houses of Congress, have confirmed they are working on a car industry rescue plan.

Democrat congressman Barney Frank said his draft bill would include a $25bn (£17bn) loan for carmakers.

Cont/...
Neo-socialism: alive and kicking in the USofA.
There is a much simpler solution: Require all imported cars to go through the same testing and for the same "testing fees" as are required for US cars to enter Japan. When you add $3000+ to the price of a Toyota Corolla it becomes much less attractive. Would not hurt Jags, Rolls, Bentley as people paying that price can afford the extra price.

Ford and GM are hurting due to huge cost of benefits to retired employees. If they go under the retirees who worked all their lives making cars would be really stuck. Letting US marques compete in a fair marketplace should level tha playing field
Firstly, most Japanese cars sold in the USA are made in the USA. Secondly, Ford and GM are hurting because nobody wants their cars. Mercedes and BMW are highly expensive cars from countries which also give huge benefits to retired people. But folk still buy them!
 
#5
DavidBOC said:
Ford and GM are hurting due to huge cost of benefits to retired employees. If they go under the retirees who worked all their lives making cars would be really stuck. Letting US marques compete in a fair marketplace should level tha playing field
Sorry but no, GM & Ford are hurting because of shockingly bad management, refusal to innovate, dreadful quality and a head in the sand approach to problems ie in trouble ? Reach for a Washington lobbyist...

Also whining about Japan putting obsticles in the way of imports (like quality control) the biggest issue is that like the Brits (and The Romans) the Japs drive on the left. A fact that Detriot arrogantly refused to cater for.

Check out this from the NYTimes yesterday -

http://www.nytimes.com/2008/11/12/opinion/12friedman.html?_r=1&hp&oref=slogin


How could these companies be so bad for so long? Clearly the combination of a very un-innovative business culture, visionless management and overly generous labor contracts explains a lot of it. It led to a situation whereby General Motors could make money only by selling big, gas-guzzling S.U.V.’s and trucks. Therefore, instead of focusing on making money by innovating around fuel efficiency, productivity and design, G.M. threw way too much energy into lobbying and maneuvering to protect its gas guzzlers.

This included striking special deals with Congress that allowed the Detroit automakers to count the mileage of gas guzzlers as being more than they really were — provided they made some cars flex-fuel capable for ethanol. It included special offers of $1.99-a-gallon gasoline for a year to any customer who purchased a gas guzzler. And it included endless lobbying to block Congress from raising the miles-per-gallon requirements. The result was an industry that became brain dead.

Not every automaker is at death’s door. Look at this article that ran two weeks ago on autochannel.com: “ALLISTON, Ontario, Canada — Honda of Canada Mfg. officially opened its newest investment in Canada — a state-of-the art $154 million engine plant. The new facility will produce 200,000 fuel-efficient four-cylinder engines annually for Civic production in response to growing North American demand for vehicles that provide excellent fuel economy.”

The blame for this travesty not only belongs to the auto executives, but must be shared equally with the entire Michigan delegation in the House and Senate, virtually all of whom, year after year, voted however the Detroit automakers and unions instructed them to vote. That shielded General Motors, Ford and Chrysler from environmental concerns, mileage concerns and the full impact of global competition that could have forced Detroit to adapt long ago.

Aas you be able to tell I have had the misfortune to own and drive American and will no longer do so. Like a hell of a lot of Yanks :wink:
 

Similar threads

Latest Threads