• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Morning Bell: Do You Trust Congress to Run the Auto Industry?

    Both the House and the Senate are set to gavel back into session this week, and both chambers’ first order of business will be a proposed bailout for Detroit’s Big Three: General Motors, Ford and Chrysler. Rep. Barney Frank (D-MA) and Sen. Carl Levin (D-MI) will introduce legislation to carve out $25 billion for Detroit from the $700 billion Wall Street bailout passed last month. This is on top of the $25 billion Congress already gave Detroit this past September. Oh, and the auto unions have already told Congress they will ask for another $15 billion next year. If you’re beginning to notice a pattern here, you’re not alone. If Congress goes through with this auto bailout, it will not be the first nor last time Detroit will be coming to Washington with its hand out. It will simply become the way the auto industry is run.

    There is no doubt U.S. auto manufacturers are in real trouble. Each company posted large losses in the third quarter, with General Motors and Ford reporting losses between $2 billion and $3 billion. But while all auto manufacturers have suffered a downturn in sales, Toyota still managed to come out in the black this past quarter. The problem is not an inherently troubled industry. The problem is that Detroit’s automakers are trapped in a business model designed for another era. Union contracts force the Big Three to pay their workers an average of $30 more per hour than competitors like Toyota. The Big Three have to keep 15,710 independent dealerships happy nationwide, compared to only 4,000 for all their Japanese competitors. Finally, the Big Three are saddled with billions in annual “legacy costs” that go to more than 800,000 retirees and pay for enormous amounts of facilities they will probably never use again.

    The policy question facing Washington is how best to facilitate the changes Detroit must make to survive. The left wants to run everything through Congress. Speaker Nancy Pelosi (D-CA) wants to choose what types of cars the automakers can build and craft a centralized plan to “assure the long-term viability of the industry.” Frank wants a “very tough oversight board” that could “veto ventures” new management wants to pursue. Detroit will never go through the necessary changes with Congress in charge. The types of changes needed will be painful and unpopular, and it is difficult to imagine politicians allowing them, never mind insisting on them.

    There is an alternative. And it’s right there in the U.S. Constitution: bankruptcy. Since the founding of our country, the bankruptcy process has been an essential part of the nation’s commercial fabric. Bankruptcy is not the end of the road; it is, rather, a new beginning. The reorga­nization process provides unique flexibility to unlock the fundamentally sound productive capa­bilities of a faltering business by freeing it of many obstacles to success, such as unviable contracts, crushing debt and poor management. Reorganiza­tion is the right tonic for businesses like the Big Three that need to adjust quickly to new economic realities but are, at their cores, sound, productive and potentially profitable.

    The fight over how the Big Three should be reformed will be an early test for the incoming liberal majority. The auto industry is hardly the only sector of the economy that is facing difficult choices. How Washington deals with Detroit will set a precedent for other businesses. As Sen. Richard Shelby (R-AL) told “Meet the Press” this weekend: “This is just a beginning of corporate welfare in a big, big way.”

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    58 Responses to Morning Bell: Do You Trust Congress to Run the Auto Industry?

    1. Authentic Connecticu says:

      It looks like the folks in DC are hell-bent to give the stimulus package another try seeing as the first one didn't have any real effect.

      This time it's the car industry.

      While the sanity of blowing cash around and running the national debt up even further is questionable; it seems inevitable – so this time let's target unemployment, create AMERICAN jobs and pump up the economy all at one time.

      Consider the following:

      Manufacturing costs of motor vehicles are 65% labor (i.e.: W-2 income), that's not all direct but due to suppliers. GM alone has over 1300 suppliers. (That's a lot of jobs!)

      1 in 10 Americans makes all or part of their income due to the automobile industry.

      Money turns over 5 times in a year.

      Thus a vehicle with a manufacturing cost of 20K produces 13,500 in W-2 income which in turn becomes a total of 65K in 12 months due to the 5 turnovers.

      (This isn't magic, it's simply how the economy works.)

      Our domestic car makers are saddled with legacy costs, most of which will reduce dramatically in 2010 due to contract changes. They need to survive to get there.

      Our own over-zealous government with a virtual alphabet soup of regulatory agencies has been no help either.

      Foreign competitors have worked off-shore collectively to meet various US gov't. imposed emission and safety standards, thus dramatically reducing those R&D costs. American car companies are prohibited from that by our FTC.

      Make no mistake; it’s no surprise that once again government has been a major part of the problem.

      Here's the solution.

      Instead of either shipping cases of cash off to car makers; or sending us all another check:

      Send out a voucher for say $1,000 good on a motor vehicle for the percentage of the vehicle that's domestic. (Civic = 70% Ford Explorer=80%)

      Let those not interested in a new car sell or give away their vouchers (Ebay would be loaded with them in no time flat) and those that are so inclined can use as many as they can get their hands on up to the full MSRP of the vehicle.

      This would bail out the car industry without giving them a dime directly

      Further it would reduce the overall age of the nation’s cars which would in turn;

      increase overall fuel economy & decrease pollution.

      Strengthen the dollar!

      Since vehicles with a higher domestic content would be moving better this would reduce our imports, strengthening our dollar which would in turn further reduce what we pay for anything imported …like gas!

      Jobs

      Instead of simply bailing out a few big companies, this would cause such a run that it would create employment throughout the industry affecting over 1300 suppliers and their workers.

      That would give the economy good swift kick right where it needs one!

      Pays for itself!

      Since money turns over 5 times, and the vouchers are only good for the domestic content of the vehicle, every dime would be spent in the United States creating taxable income.

      What is the income tax on 65,000 anyway?

      (Remember? 20K manufacturing cost = $13,500 W-2 income x 5 = $65,000)

      Another Stimulus Package?

      I'm sure you'll agree that this makes more sense than simply sending out checks; many of which will be used to buy new flat screen TV's usually made in Malaysia or some such place.

    2. Butch, Austin, TX. says:

      I have no influence with the RNC or with any of our representatives. So, will you please use your influence and tell our Republican leaders (what few we have left) to not just say no, but to educate the public on why bailing out any business is bad business. When businesses are unable to compete because they have not adjusted successfully to the marketplace, and if we want to spend money on displaced workers, the answer is to "retrain" the workers in skills that are needed in the marketplace and to let the old businesses with ineffective models go-away to be replaced with new state-of-the-art businesses that can compete. To bail out failing businesses is absolutely wrong for everybody. I listened to some of our Republican leaders the weekend and they frankly haven't a clue. It's pathetic.

      Butch

    3. Steve in Nebraska says:

      No offense where no offense intended, but congress couldn't run a convenience store without running it into unrecoverable debt and ultimate bankruptcy. In fact, NO, I do not trust them to run this major industry of auto manufacturing. Most of them don't understand what business is, let alone what running one entails.

      Congress, we want you to stop trying to run the universe, including every aspect of our lives. Provide for the common defense, promote the general "welfare" within reason-if reason means anything anymore-and then pretty much just leave us alone to make the country work. Because it is us that does it, you know, not you. Your interference just screws it up.

      If anyone is listening, Thanks

      Steve

    4. Dennis Dreyer, Fennv says:

      You have nailed the problems correctly. Unfortunately, the unions and dealers that must change, are tightly connected to our congressional leaders. The domestic auto companies are well aware of the problems they face and have tried to correct them – remember eliminating Oldsmobile and various UAW strikes over the past decade. The costs of these changes are too high to fix the root of this structural drag on these companies.

      Throwing money on these companies will certainly drag our country down, without addressing the real issues. When asking government to oversee improvements, remember the mess they helped create in our mortgage market, then look at Social Security, Medicare and Medicaid as each one of these programs spiral out of control and drive us deeper into debt.

      Your recommendations are on the mark and should be debated honestly in congress.

    5. BYRON, FAIRFAX says:

      this is not a bailout for GM or the other car makers but a handout to the unions. GM's market cap is 1.84 billion as of 11/17/2008 at 9:30 am. why are we paying them 13 times the value of their company? congress is unfit to be in charge of this and neither is Paulson. why should one man have such enormous power over the markets? and Allen Greenspan should be arrested for impersonating a capitalist. he is nothing more than a socialist in a pig suit (capitalist pig that is). these numb nutted nitwits are going to send us into a flat out depression that will take years to recover.

    6. Ken Jarvis says:

      I LOVE HF.

      They are THE BEST COMEDY WRITES AROUNG.

      Today = Do You Trust Congress to Run the Auto Industry?

      It should be -Do You Trust the BIG 3 to Run the Auto Industry?

      The Answer is NO.

      I drive a 2005 Prius

    7. kent/virginia says:

      The Federal Government cannot even run the Federal Government effectively, what makes those Liberal Dems. think they can run the auto industry? Like the 'Big Three' auto makers, our top heavy Federal Power Structure is ineffective, inefficient and in need of 'Change.' All career politicians should be voted out and term limits imposed on all future representatives. We The People should demand it.

    8. Ken Jarvis says:

      Obviously, HF doesn't understand Union Contract.

      They hav = "Union contracts force the Big Three to pay their workers an average of $30 more per hour than competitors like Toyota."

      WRONG!!!!!

      A union contract is agreed to by BOTH SIDES,

      MANAGEMENT AND LABOR

      So, it is NOT the "Union Contrace"

      that forces anybody to do anything.

      My sister used to be in the Bobby Pin Business.

      They NO longer use Bobby Pins.

      Will the Fed bail HER out too?

    9. Mary, Wisconsin. USA says:

      Who's next in line for a hand out? The drug smugglers, killers sneaking over the border receiving free health care while two border patrolmen are in prison for protecting us? If we could only ask our forefathers some questions and get back to the way our country was meant to be! Common sense, incentive for hard work, responsibility for our actions, etc.

    10. CanDoc- what used to says:

      NO , ABSOLUTELY NOT , from someone who knows how Government can ruin healthcare , as evidenced by multitudes of Canadians on waiting lists under socialized Govt-run healthcare coming to the US for cardiac surgery , and cancer treatment. Government control , compounded by unions such as the UAW AND CAW will drive auto sector jobs overseas and Government intervention without transparency , or accountability will surely squander the precious resource of hard-earned American tax dollars as accurately reflected by our citizen advocacy groups such as the outstanding CAGW -CITIZENS AGAINST GOVT WASTE .

    11. Leo/ MN says:

      I don't trust the government to run anything. The debt the country has is because of the crap government has decided to give as handouts. The more government gets involved in the closer to socialism or the other word. A remark many years ago by a Soviet leader " We will bary you, we will not take you by force but from within". Seems to me they are getting close with th stuff Government is doing.

    12. Martin Spencer/ Myrt says:

      It is odd that the do nothing congress would try to hone their inability skills once again on the American public. Their practices and greed of the big companies have nearly put us to ruin. We have no choice but to bail out the auto industry but it should be done with severe union concessions. One only has to look at Honda and Toyota to figure out how to run an auto industry and it didn't take a union. I'm strongly in favor of a union but only if it works for the betterment of the employee and company.

    13. JC says:

      It is all bad … stinks…

      Just like fannie and freddie…

      We are in for socializiing the next 4 years….

    14. Ric Upton says:

      Thank God we still have the impeachment laws, or have they ruled it unconstitutional? Bankruptcy is the only solution.

    15. Ken St. Amour, Kings says:

      It seems inappropriate…..

      That Barney Frank would carve out 25 billion dollars for the auto industry, since he has no idea how to handle a buck(and how he was re-elected is beyond belief). I feel terrible about the condition of our automobile industry, but maybe they should find themselfs in bankruptcy court, get protection under chapter 11, re-organize, right size the organization and get back on their feet alone. I think American built cars are wonderful, but they weren't always that way and now the auto industries chickens have come home to roost.

      The thought that the U.S. Government(specifically congress)is going to be partners in private industry is just plain terrible. They can't manage themselves. I hope to God that there will be someone in Congress that will come to their senses.

    16. Evan from Anchorag says:

      Apparently everybody that is critizing the big 3 has been driving a Prius for the past 3 years or was mad that they had to buy a big comfortable car that was big enough for the whole family. If our government is so smart, why didn't they do anything a couple of years ago when they knew this sub-prime mess was coming.

    17. Thomas, Apple Valley says:

      I don't believe congress knows anything about the nuts and bolts of running anything except congress. We should not bail out the auto manufacturers with any more than what they have already received. What happened to the original $25 Billion dollars? The manufacturers should demonstrate a good faith effort by reorganizing and cutting cost.

    18. George cook Havelock says:

      All the comments have a word of truth in them . My request is , LET THEM FOLD !! We have been fine with the loss of other motor companies , Studebaker , Etc . The present companies are so full of overpaid workers and overproduced vehicles and over control by unions that they are no longer able to survive .LET THEM GO UNDER !! Then restart a new company unfettered by greed .

    19. Joy Woods The Woo says:

      Government should leave us alone, we always do well without government. This is just the beginning of fascism. Hail Mussolini

    20. Bob from Philadelphi says:

      I don't trust Congress to run a lemonade stand let alone any real business!

    21. Ken S. : Forest,Va says:

      WHAT? Congress run the auto industry?

      They can't seem to run the our government.

      I don't want to trust them with any more of

      my money!!!!!

    22. William Wynne, Atlan says:

      The opportunity to fail gives meaning to the opportunity to succeed, and government should simply get out of the way.

      Government regulation, after all, bears considerable responsibility for the present state of the industry. Inevitably it distorts the free market.

      During the 60's and 70's GM's enormous market share caused management to live in fear of potential anti-trust legislation which might cause them to divest the Chevrolet division. The company's response was to shift emphasis from a proven and extremely successful competitive business model to one based on capital investment. Enter financial whiz-kids; exit "car guys". Within a decade there were few people left in positions of power who understood the business of product development, marketing and manufacturing. Bureaucracy based on loyalty rather than merit grew apace. All this at a time of growing foreign competition.

      Add to this a welter of onerous and unfunded mandates–OSHA, Motor Vehicle Safety Standards (MVSS) and Corporate Average Fuel Economy (CAFE), to mention a few, depressed profitability. Equally burdensome were State regulations (such as those in California).

      The domestic industry's way of dealing with CAFE standards is illustrative. In order sell profitable trucks and SUV's US companies pumped out efficient but underperforming vehicles for which there was little demand (often sold at a net loss) in order to balance fleet average fuel economy.

      While I make the case for government culpability, I do not attempt to absolve short-sighted management. I have observed that in bureaucracies (whether in government or industry) competence and power are seldom found in the same hands.

      Finally, I come to my point. Government intervention in the automobile (or any other) industry will reward bad management or replace it with worse. Chapter 11 restructuring (the natural winnowing in a free market), though painful and costly, offers the best hope for domestic automakers.

      Note: as a salaried retiree (GM), I write as one with a real stake in the game. My medical coverage will be cut off in January, and my pension may well follow. Still, I hope the road to serfdom becomes the one less traveled.

    23. Richard Ahern says:

      I do not trust Congress for anything. The Political Subversion of our Constitutional Republic. Social Democracy and Racial Socialism in the United States of America. Democracy will not last.

      Waste Watchers Inc
      http://www.wastewatchersinc.org

    24. Pingback: Morning Bell: Do You Trust Congress to Run the Auto Industry? | damagefreight.com

    25. Paul A. Schwab, Cent says:

      1. No I do not trust Congress to handle anything until they stop the politics. We need TERM LIMITS badly. It seems that anything brought before them causes one side to agree and the other to disagree. Big arguements pursue and they get no where. Let big business fail through Chapt. 11 and them start to renegotiate new contracts, not only with union or non union personnel but for executives as well. Get rid of the executives who failed the companies and hire new for lot less money.

      2. The dam has broken. Now today FOUR more Insurance Companies have petitioned for help. Where does it stop? Let's forget bail-out and let the market work in our society as it has for over 200 years.

    26. Gwynne Galante New Y says:

      While I hate the idea of layoffs,I do beleive that bailing out the Auto Industry is not in our best interest. The big three need to use the bankrupsy process, to help rebuild their companies, to truly compete. U.S auto makers have got to build cars that suit the needs of todays econmony.There is no excuse for foreign companies to be more advanced than Americans.It's time for reevalutating and steeping up to our full potential. NO BAILOUT………

    27. Paul A. Schwab, Cent says:

      I have always heard the Democrats oppose big business. Why do they now want to help big business? It may be perhaps to help big union bosses line their pockets all the more. What are we doing people? Remember the Boston Tea Party?

    28. JOANNE FRASURE says:

      when are we the working highest tax payers in america going to say enough is enough,stop the bail outs,,all of them,the ceo are getting our money and retireeing and living high on hog,while we work our rearends off,and seems like we are doing this for nothing in return,,,,clean out washington,clean out wall street,if any one gets any money let it be the people that worked for it,wake up america,,before our america is sold out from under us,worse they are selling us out to foreign countries.

    29. Pingback: findcheapinsurance » Blog Archive » Morning Bell: Do You Trust Congress to Run the Auto Industry …

    30. ella quinn kinsto says:

      no i donot trust congress to do anything right.no bail out please.they do not have common sense more less book sense. Ella Quinn

    31. Kenneth Scoville says:

      Well some interesting facts. Average vehicle produced by our BIG 3 auto makers costs $8,000 to make. Average wage of production workers in the union is Seventy Five ($75.00) per hour. I think I smell some rats in the house. The auto industry needs to get it's act together. I for one do not think they should get any more money from us the tax payers. Let them fix whats broke or shut down and tell the union to go take a hike.

    32. Doris Morgan, Oklaho says:

      A wonderful brand new Silverado Chevy truck for

      half price? Yeehaw! I'm in that line….may buy

      one for the kids, too. Making hay while the sun sun shines…and counting my blessings.

    33. Monica Lewinsky says:

      heck no! I don't trust the govt especially

      in the hands of pelosi reid and little barry.. soon the chicoms will be selling cars worldwide and they don't pay their worker $73/hr and retirement @ 55!!! they sure as h..e…ll don't pay them for not working!!

    34. Dave McDuffie, lagun says:

      TRUST CONGRESS?! Are you out of your freaking mind?! Look what they have done to social security, medicare, energy production, illegal immigration! They have done their best to destroy what we worked hard for and fought to build up and it took exactly ONE ASSHOLE like TED KENNEDY to tear the whole damn thing down! You people better start telling it like it is and like it was before we lose all of it. Congress is there to PROTECT THE PEOPLE OF THIS COUNTRY…PERIOD! They were not put there to gey rich at our expense, to bring in hordes of illegals to destroy our welfare system for the purpose of garnering new VOTERS( who can't speak or read ENGLISH!). And where has all the trillions put into social security gone may I ask? Every single congress person needs to put out of office, whatever they have taken from them and put into the treasury, and no retirement for them either since they have destroyed retirement for millions of people! If they did not do anything illegal they allowed it to go on and on ad infinitum! They need to go and NOW!!!Also every single left wing moronic news caster and journalist needs to go as well because they looked the other way while spouting their left wing nonsense and allowing their demorat senators to rob us blind and destroy the foundation of this country. As long as they all remain, the problems will continue unabatted.

    35. Carlos R Arvizu Sr., says:

      Editorial Comments on the Auto Industry Bailout November 17, 2008

      Please be advised that it would be a mistake to hand GM, Ford, and Chrysler a blank check to bail them out, however, having said that, it is also imperative not to allow these automakers to go under, as the nation can not allow these major employers to jeopardize an already fragile economy to worsen.

      The automakers not only have employees, they also have inter-related supporting companies that supply the automakers with other industries, such as the steel industry, aluminum, paint, glass manufacturing, rubber, plastics and electrical to name a few. Each of these companies employs millions of other workers, and I can assure you the affects would be devastating to the entire economy. Just like the real estate and mortgage market, they have many inter-related components that employed lots of other people, which is why our economy is suffering today, we don’t need to compound the problem.

      The only way, and I repeat the only way for the auto industry to come out of this financial crises is to produce more sales and decrease expenses. The bottom line is if they auto industry is to survive, it has to seriously look at itself.

      It’s not Congress’s job to become a partner in private enterprise. It will take a team effort to turn these companies around, Congress needs bring together the financial resources to lend temporarily and bring the Automakers and the UAW to the bargaining table to work out a plan to help these companies survive as well as the employees that are members of the UAW.

      If the Automakers don’t survive, neither do the employees. The Automakers have been borrowing from Peter to Pay Paul just to meet expenses, and just loaning them money is not enough. They need to fix the problem, otherwise, they will still be in this mess, behind the eight ball, then where will all the employees and the UAW be? On the bread line. A comprehensive plan must be in place to meet three main objectives; increase sales, reduce expenses and add incentives to increase sales for future growth.

      1. A temporary bridge loan is needed, it is not a bailout, it is in the form of a loan guaranty. By extending loan guarantees to the Auto industry, this will temporarily assist automakers over the short term and it is not meant as buying the auto industry or welfare. It’s a parachute with strings attached to insure growth and survival.

      2. An early buyout program to reduce the workforce voluntarily by allowing those employees who may opt to retire, with an incentive to retire early, however, instead of a traditional golden handshake of cash to retire, trade stock into their 401k. At today’s price, that would be a tremendous money incentive in the future for retirement growth, and also to support of the company continual survival.

      3. The UAW needs to understand that they may need to make a concession on the replacement workers. Newer replacement workers would start on a tiered pay wage at 60% of the current employee’s wages for a period of 5 to 10 years. This would allow the Automakers to survive and prevent a catastrophe to the economy. This breathing room will insure future employment for UAW members. A bankrupt company has no winners in it. All contracts and debts are paid with pennies on the dollar including pension funds, 401k’s and health benefits. That needs to be made very clear to the UAW and it’s members.

      4. The Congress can pass legislation to allow the tax code to help as an incentive to buy American made automobiles by allowing consumers to receive a tax reduction of interest paid for automobiles manufactured in the United States by at least 40% made in America. This would be a stimulus that has real value to it.

      5. The Auto Industry needs to look at ways to build a better automobile, fuel economy, safety and reliability as well as a competitive price are all based on value to the consumer.

      Americans are the biggest consumer of foreign goods, including cars. Foreign companies import goods to the United States and are beating us on price mainly because of cheaper labor cost, once the UAW and the Automakers realize this fact, they'll need to readjust their thinking, to meet the needs of the American consumer by being price competitive, as well as the other components to the problems, such as fuel economy, safety and reliability.

      I am currently considering running for Congress for the 34th district in 2010. Hopefully to help smoothout the economic woes that we are currently facing.

      By

      Carlos R. Arvizu Sr.

      TheDon1950@aol.com

    36. Ron, Louisiana says:

      I find it interesting that the Democrats want to bail out the big three Auto makers when it was the failed energy policies of the Democratic Party that brought all this on in the first place. If we could drill here and drill now, workers from the big three wouldn't have ever been laid off in the first place. Democrats keep talking about "clean burning, renewable fuels". There aren't any? If we could drill for our own oil, use our natural gas resources, use nuclear energy, and wind power, would wouldn't have to depend on OPEC for our energy supplies. Only thing standing between us and a full recovery to our economy is the Democratic Congress. Get rid of them and we will be much better off. What they have done under the leadership of Nacy Pelosi and Harry Reid borders on treason. Yes, I believe we are in a long lasting war against terrorism. Or, Islamic extremeist who want nothing better than the fall of the United States. God bless conservatism and God bless America. God protect us against the greatest enemy of all,the Liberal Democratic Party.

    37. Ray, Iowa says:

      Personally, I do not trust Congress….especially a democrat majority congress to run a bath, let alone the auto industry. IMHO, we have the most criminal elements in this particular Congress, than at any other time in our nations history and they should all be ashamed.

    38. Mark, New Mexico says:

      With the entire rancor about bailouts for the auto industry no one mentions how much tax is paid by domestic companies compared to imported products. Today only products produced in the US are taxed. There are taxes directly on the companies, and on the employees working at those companies. This puts US production of automobiles and components at an extreme disadvantage. This is part of what is driving industry out of America. It is amazing that GM has lasted this long with the free ride their competition receives from the US government. Japanese cars pay zero for building of roads or schools. If it was a level playing field the US would win hands down.

    39. Russell Acocelli,Boc says:

      The big three automakers need to do like the Japanese have done done,give consumers what they want, not what GM,Ford,Chrysler feels they should have.Because of poor management, unions and 800,000 retired union workers, I for one am not in favor of bailing them out.

      R.A.Acocelli

    40. donstoverjr says:

      The country needs to not have government in the economy we need to go a primarily free enterprize system and let the markets regulate themselves. Cut social spending for many who know, Ronald Reagan asked for 1982 $386 billion in social spending cuts he only received $86 billion in cuts. He cut taxes for all Americans and especially average income people. If however he recieved his original $380billion in social spending cuts. The deficite might have been retired 10 years ealier than it was in the mid 1990"s .For by inflation the $380billion equate to more than $1.2 trillion by todays inflation. We are in debt and finnaciall upheval because of ultra liberalism of both democrats and far to many liberal republicans. And now a socialist President Elect Obamma

    41. John Home-Douglas says:

      As a marketing executiv,for a company in the 500,I guarantee that if the auto industry is bailed out to the tune of twenty five billion,within one year they will be back for another twenty five billion. During the big three hey days the union gained ridiculous concessions,which is now haunting the industry. They were all manufactured driven"we know how to make cars,you guys go out and sell them".Can anyone in marketing believe that it was not until 1985 that any of the big three had a consumer research department. Let them go in to chapter 11,like the airlines and then negotiate with the unions a deal where they can be competitive , start reading the market properly,improve your quality control,and stop making gas guzzlers

    42. mark kohn, buckley w says:

      I wonder out of all who are responding to this have american built cars, its has to start with the consumer,we all complain about the asian automakers but we continue to buy there cars. as for the unions, at what point do you say enough is enough you guys want more pay for less work,IT makes me sick,what ever happened to being number one.. LETS START TAKING CARE OF NUMBER ONE: FOR A CHANGE!!!

    43. dennisl59 says:

      It's clear that the will of the people is being ignored by the representatives that they elected. So, the people elect others to look out for their best interest, one thing: Once they get to Washington, DC, they "join the club" and ignore all common sense, now don't they?.I think I've come up with a description: Representative Dictatorship?(By the way, Ford is launching a "new" Mustang…q: how many millions did it take to develop and make and how many do they have to sell to break even?…No one has an answer, why? Because they sell at a loss!!! HA HA HA!!!) Problem, what problem?

    44. Ardell Nagle Rexburg says:

      It's clear that we need to keep remininding our elected officials work for us not for whoever is in power. We need to flood their offices with emails and phone calls. Tell them their job is on the line. We have seen how the obama camp got things done, we can do the same.

      We have the power to get things done by talking writing to friends to get America back on track.

      Congress should be encouraging people to create new cars energy efficient homes and bussinesses. This is done by cutting taxes and a tax incentive to those who want to go green.

      The auto industries have caused their own problem, we don't need to bail them out.

    45. Joan of Argghh! says:

      There's a bunch of folks who wouldn't trust the government with a brake job, but who want to turn over their open-heart surgery to them. Go figure.

    46. St_Denis of Virginia says:

      I heard on Fox News this morning; the proposed merger of GM and Chrysler would eliminate all Chrysler products except the Jeep. This does not sound like a good deal for Chrysler workers. Could it be the tax payers will be asked to kick in another Billion or two for Golden 'Christmas Bonus Packages?' Congress is very fond of bonus packages for failures.

      “Up the Organization” a great book pointed out the road we took to get here. Incestuous relationships between Auto Managers and Auto Unions led them down Primrose Lane. Only a fool would bail them out; but then, Barney did such a good job with Fannie Mae making their executives very rich while bankrupting home buyers and loan companies, it just might pass into law.

    47. Mike G says:

      Honestly, I can think of few in the house or senate that I respect intellectually or morally. In addition, few, if any, have had a real job. Why do we think that these clowns could run anything?

      This is not a dig, it's the plain truth.

      As an example, just what could Obama do if it weren't for crooked politics? The guy is a loon. If this is what a Harvard law output looks like, we had better start counting on MIT grads, not Harvard law clowns.

    48. Pixelkiller, Doity J says:

      Is this the beginning of American Leyland? With Congress deciding on what to build and how much to charge, who will buy what they don't want even if they have to pay less than it costs to make them? Heil to National Socialism.

    49. WSL, Apple Valley says:

      Do I trust Congress to run the auto industry? Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Are there any sane folks in Washington any more?

    50. Pingback: Instapundit » Blog Archive » UM, THAT WOULD BE “NO.”  Do you trust Congress to run the auto industry?

    51. Pingback: Jules Crittenden » When The Going Gets Tough …

    52. john , Indiana says:

      Yea…I trust congress to run the auto industry…RIGHT OUT OF BUSINESS!!!!!!!

    53. Pingback: Morning Bell: Do You Trust Congress to Run the Auto Industry …

    54. dave schraub, indian says:

      does anyone really know what the problem really is? i think i know, the real problem is the people in washington have never had a job. the money flows in like a well that never stops. they don't know what it is to have to be on a budget, and the real problem is, we have allowed it for the last 50 years. now it's like trying to put a cork in the dam, that broke 50 years ago. we all blame the democrats for all of this, but the republicans allowed this to carry on. so my solution to the problem is, vote out every incumbent for the next 10 years. send a message to all of the professional politicians that you are going to have term limits even if you don't vote for it. just a thought!

    55. dave schraub, indian says:

      another thought, does anyone know why businesses start? they fill a spot that has been vacated by another business. look back in history, business folds another takes its place. maybe it's time the corruption at the top of these businesses are taught a lesson. i'm all for capitalism, but i don't know anybody that is worth 10 million dollars a year. that goes for sports figures too.

    56. Pingback: The Best Real Estate Info » Blog Archive » Morning Bell: Do You Trust Congress to Run the Auto Industry …

    57. Pingback: The Best Real Estate Info » Blog Archive » Morning Bell: Do You Trust Congress to Run the Auto Industry …

    58. Pingback: PIÑATA-CAR (AKA Auto Bailout) « FactReal

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×