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Discussion Starter · #1 ·
Reuters

House Speaker backs auto industry aid

WASHINGTON (Reuters) – House of Representatives Speaker Nancy Pelosi said on Tuesday federal aid for the failing U.S. automobile industry was urgently needed and that she was confident Congress could act on emergency bailout legislation next week.
In a statement, Pelosi said she has asked House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, to work with House and Senate leaders and the White House to craft legislation to help General Motors Corp, Ford Motor Co and Chrysler LLC.
Pelosi, a California Democrat, did not say how much aid should be provided, but automakers are seeking at least $25 billion in emergency loans to help them survive their worst-ever downturn.
"I am confident Congress can consider emergency assistance legislation next week during a lame-duck session, and I hope the Bush administration would support it," Pelosi said.
Pelosi aims to amend the $700 billion government bailout law that now applies to banks and financial services firms.
Pelosi and her Senate counterpart, Majority Leader Harry Reid of Nevada, urged Treasury Secretary Henry Paulson over the weekend to use his authority under that program to help Detroit.
But the White House indicated on Monday that any bailout effort for automakers would have to originate in Congress.

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Mercury C557
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...But the White House indicated on Monday that any bailout effort for automakers would have to originate in Congress.
OH YEAH?
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DetNews.com - Bush wants automakers to get $25B fast, without fuel-efficiency strings
David Shepardson / Detroit News Washington Bureau

WASHINGTON -- The White House said Friday that President Bush wants Congress to quickly move to grant automakers quick access to $25 billion...

..."We are now actively calling on Congress to pass legislation next week that will amend the loan program and help accelerate much needed funds to auto companies that can show long-term viability," White House spokesman Blair Jones said Friday evening. "We stand ready to accelerate the funds as soon as Congress acts. The opportunity to help viable auto companies is there for the taking."...

..."Congressional Democrats are instead choosing a path that will only lead to partisan gridlock with a focus only on the Troubled Asset Relief Program. The TARP was never intended for that purpose, and it is clear there's very little appetite to use TARP funds in this way," Jones said...

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Hey, Mr. Jones ^^
It takes 2 to gridlock

&
Wonder if this moves quickly, will it mean Fomoco WILL speed up all the 2010cy stuff?
>> Mercury C-Car(s)! <<
 

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Discussion Starter · #4 ·
I personally would love to see Ford getting out of this quagmire w/o using federal funds, just the way they have planned it. If GM gets federally backed loans though, Ford should too. Its only fair. Ford should be not punished for GM's horrible management.

My dear Tahoe, Detroit has tied itself in the market place with irrelevant product for far too long, I don't think that Congress or the WH can do a better job on that that the one they have done for themselves.

The "bailout" would only buy them (GM + Chrysler) time to show better thing and see how they do.
 

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Discussion Starter · #6 ·
My fear is that if one of these companies fail, it will have a tidal effect on the rest.
The problem was the sudden drop in sales. 30% for Ford, GM Toyota, over 45% for Chrysler.
That is a serious drop in operating cash flow.
Just for the record, Ford drop was 30%, GM's was 45%. Both Horrible figures
 

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(possibly) outside of the falling-dominos/supplies problem
I truly believe Ford can make it with-or-without (cue U2) the gov'mint

Chrysler has become small enough that imho the only thing that most would notice is
if they did something radical

that leaves GM as a keystone-question in our Economy

Saw a remark-or-article that said there's enough over-capacity that removing All of GM's production would merely balance supply/demand :eek: ...at current levels
don't know if that's completely true...

Imho the 'mood' in the U.S. has been shifting for some time against "foreign" interests - to the point - that something unthinkable not long ago (& quite draconian) could have a strong chance of popular acceptance ...imho

I just have so little faith in the official bureaucracy that I'd expect them to shoot us ALL in the foot - or maybe higher :(
 

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Discussion Starter · #9 ·
I was taking the average of last 3 months.
You should have said it.

Anyway, since we are talking historical data, its important to keep in mind that YTD GM sales are down 20.9%, despite de employee discount program implemented in September. Ford YTD sales are down 18.7%.
 

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You should have said it.

Anyway, since we are talking historical data, its important to keep in mind that YTD GM sales are down 20.9%, despite de employee discount program implemented in September. Ford YTD sales are down 18.7%.
This is true, there is almost a corellation between the two companies. Their fate is almost inter twined. I hope they pull through.
I am a GM fan, but I know Ford is my second favorite brand, and would never buy anything else other than Ford and GM.
 
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