Comments on: A Case For the Auto Industry Bailout

By: Bismarck Auto Detailing

Bismarck Auto Detailing — Fri, 19 Feb 2010 16:05:52 +0000

We have to help out GM or we will become a strictly importing company. How can anything work if we don’t even have jobs for our own people. Many of us are on 2 sides on this issue. It is like religion and politics (with politics playing into this article by the way) it gets the most controversy and stirs everything up….

By: Rick Wagers

Rick Wagers — Fri, 21 Nov 2008 05:23:23 +0000

I am writing to you regarding my concern about the possible bailout of the automotive industry, and a possible solution. With all the money being thrown around by the Federal Government, I have deep concerns about accountability, etc. I am currently a factory worker for Mitsubishi Motors in Normal, IL. It seems to me that the only solution to getting the automotive industry back on its feet is through increased sales. Instead of just handing over billions of dollars, I have a possible solution. Offer a government rebate to the consumer for the purchase of an American made vehicle. Lay down some ground rules. You must be an American citizen, be 18 years of age, and qualify for financing. The vehicle must be brand new. Tier the rebates based on MPG of the vehicle. For instance, any vehicle which gets over 32 MPG, you would receive a $4,000 rebate. 28-31 MPG $3000. 24-27 MPG $2000. Anything less, $1000. Of course, you could alter any of these numbers. Let the consumer negotiate the vehicle with the dealership as usual. The consumer would finance the car as usual with his/her bank of choice. Once the deal is made, and papers signed, the government would send the check to the lending institution to go against the amount owed. For instance, say you purchase a $14,000 car, which gets 35 MPG. You would actually owe only $10,000, once the government sends the check. This way, the dealership can’t scam any money; the consumer can’t scam any money; you increase sales the old fashioned way; you create a demand for more fuel efficient vehicles through consumer demand. Even if you normally pay cash for a vehicle, you still have to finance it. Once the lending institution has received their check, you simply pay the remainder. Also, you would want to put a time limit for such a plan. Maybe 3, 4 or 5 years. Let me know what you think. Thanks for reading my idea.

By: Peter Buxton

Peter Buxton — Sat, 15 Nov 2008 23:10:45 +0000

I am an unemployed Michigander, and the level of ignorance here is appalling.

Where were you when Detroit was profitable, but paying 38% tax on those profits: profits that could have been used to put GM, Ford and Chrysler stock at something above junk bond status, a level they have been approaching for decades?

Where do I get the job of taxing 2/5 of people’s income, then loaning it back to them on profitable terms?

How do I get in the “job bank” that has no jobs, that is an unwanted employee bank, that pays $65,000 to sit on my ass for years?

Why do we have a corporate income tax where politicians like Mark Foley and Stephen Condit decide which business is “worthy” for tax breaks?

Detroit pays that income tax on every car it sells overseas. A national sales tax would eliminate that, and help our trade deficit tremendously. All of Europe and Japan have this tax: it’s called the VAT (value added tax). I won’t vote for it, though, if it came to me: not unless it had a provision that prevented these stupid tax breaks and progressive tax levels.

Tiny little minds in Detroit. For a tiny, rapidly shrinking state.

By: bc

bc — Sat, 15 Nov 2008 05:36:05 +0000

it’s remarkable how poor my spelling and grammar are after 3 cocktails…..sorry.

By: bc

bc — Sat, 15 Nov 2008 05:35:10 +0000

nafta moved a significant amount of factories and jobs to canada and mexico…my dad helped get them started and increase their efficiency. government policy that was lobbies by the big 3 has had a tremendous effect on the current state of the industry….who killed the electric car to make way for the hummer? i don’t remember the specifics, but wasn’t there a federal subsidy for small businesses to purchase a vehicle that got less than 15 mpg to the tune of line $10,000? I don’t know all the answers, but i have a serious distrust of the big 3 and don’t think just giving them a loan without dictating what they should do with it will help.

Coincidentally, notice how gas prices have plummeted…..is this a conscious effort for the oil producers trying to make the american public forget about the true cost and dependency on oil? the push for the big 3 to make fuel efficient cars abruptly ended when gas became affordable again.

By: Queen of Spain

Queen of Spain — Thu, 13 Nov 2008 17:58:58 +0000

Great minds think alike Angie. My Dad JUST called to remind me about that.

By: AngieNextDoor

AngieNextDoor — Thu, 13 Nov 2008 17:48:56 +0000

I think all of these ideas are great. Let me add one that I think helped Japan with their auto industry way back when… They imposed serious tariffs on imports which forced the domestic auto makers (Toyota, Honda) to respond to consumer demand for quality and innovation. It doesn’t make economic sense for a Japanese person to buy an American car. The rest is history : )

By: Eric Gagen

Eric Gagen — Thu, 13 Nov 2008 16:32:08 +0000

Just because we (the U.S.) ought to have cars built by homegrown companies and ought to preserve our industrial capability doesn’t mean that the currenty structured U.S. auto companies should be the ones to do it. Bankruptcy does not mean “we close our doors forever and nobody ever works again” It means that the companies need to be completely re-thought and rebuilt in ways that cannot be done without the legal protection of bankruptcy to allow them to break bad contracts with unions, dealerships, parts suppliers and the current management. At present the existing talent and ability of at least a portion of the workers for the big 3 is not being used properly because they work for moribund ‘zombie’ companies. I would much rather see a dynamic competitive U.S. auto industry than the one we have now. If that winds up being 10 times smaller than the one we have now, then so be it. I would rather have a 10 times smaller winner that can grow into something bigger than a group of giant corpses that feed unendingly from government funds.

By: Erin W.

Erin W. — Thu, 13 Nov 2008 05:54:37 +0000

My issue is slightly unrelated – but related in that my town is about to get shut down because ConocoPhillips, the primary employer to my town, is pulling out almost 800 jobs by Jan. 31st, and possibly up to 3000 by the end of next year.
I don’t know what’s going on, or why – but I’m certain that this, as well as what you’re writing about, all have to do with the country’s economy – if not the World’s. What I do know is that I am severely disappointed that rather than being able to raise my family in a small, tight-knit community, I’m going to have to move to a bigger city in order to offer them any sort of financial stability.
So, I hope for the sake of the smaller (and larger) communities in the Detroit area, that the government does whatever it sees fit to do to help them.

By: Rick Kotecki

Rick Kotecki — Wed, 12 Nov 2008 20:10:10 +0000

Ok people let’s say this together: This Is Not a Bailout; it’s a government loan that the auto industry will pay back with interest.