But the truth is, he’s giving it to us. Right in the out hole.
General Motors Corp. and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for substantially restructuring their businesses under a rescue plan announced by President George W. Bush.
The money will be drawn from the Troubled Asset Relief Program set up to bail out financial institutions. An additional $4 billion would be provided in February provided the second half of TARP’s authorized $700 billion is released by Congress. The funds would allow GM and Chrysler to keep operating until March.
Chrysler’s loan should be made to be paid in full by the end of the year by Ceberus. They are the parent company. If the parent won’t give the kids any money, why should the “Rich Uncle Taxpayer”?
As for GM, well, they haven’t listened to a thing I said so fuck them.
Never again will I buy one of their polished rolling turds. New or used.
Even with this prick’s tax incentive
A member of the U.S. House of Representatives believes the best way to provide relief to the beleaguered automobile industry is to stimulate demand with tax incentives for new car buyers. Representative Doug Lamborn (R-Colorado) on Thursday introduced a bill, HR 7298, that would allow motorists to deduct a portion of the purchase price of domestic vehicles on their income taxes.
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“HR 7298 would give a free market approach to addressing part of the auto industry’s problems,” Lamborn wrote in a letter to colleagues on Thursday.
How in the hell is a tax break “Free Market”? It is classic Keynesian bullshit.
Let them make a quality product that people want, or down the bankruptcy hole they go.
I swear that they must have an IQ limit to enter public office these days or something.
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GM still sold more cars than anyone, and the truth is they build pretty good products.
I have a 2000 Pontiac with 175,000 miles on it, still essentially rattle free, and running great. Most people think it is a lot newer than it is.
I also own a 2000 GMC Yukon XL. 165,000 miles on it. Yes, it sucks gas at a prodigious rate, but it also moves 8 people, a dog, and lots of luggage in relative comfort.
Neither vehicle has had ANY major engine work. The most expensive maintenance on either were new spider gears and bearings in the Yukon XL, and after teaching 4 teenagers how to drive, I can hardly complain. (I’m not sure how many times the boys got the rear end loose playing in the corners, but if they were like me, it was more than a few!)
The problem is NOT product, but management, and paying ridiculous amounts for labor that is skilled, but not highly so. Lee Iaccoca solved the problem once at Chrysler, and some innovative thinking has to be done at the automakers now.
I’m all for structured bankruptcy, shedding anyone making over $100,000/year, and starting over. (If I recall correctly, Iaccoca took $1 for his first year at Chrysler.) Let these guys do the same and see if they can make it work.
The product is decent, and will be better if they can afford to put money back in it. Mitt Romney said it pretty well:
“That extra burden is estimated to be more than $2,000 per car. Think what that means: Ford, for example, needs to cut $2,000 worth of features and quality out of its Taurus to compete with Toyota’s Avalon. Of course the Avalon feels like a better product — it has $2,000 more put into it. Considering this disadvantage, Detroit has done a remarkable job of designing and engineering its cars. But if this cost penalty persists, any bailout will only delay the inevitable.”
Bill