A $25 Billion Lifeline for GM, Ford, and Chrysler

Reader Comments
Back to blog

BMW is a German automobile and motorcycle manufacturing company. It is known for its performance and luxury vehicles. Audi often finds itself in the shadows of Mercedes and BMW, but it emerges from the shadows.

Concept Cars of AL 5:20AM March 19, 2009

Ive always wanted to be rich please if you could make me rich iwould be so happy but im going to use my grandmas email adress because i dont have one.buti would do all i can to help anybody im just a kid sending a rightteous letter to the news crew so if you want to make me rich contact me thats all i ask from you guys.Thankyou i would give all my thanks to you guys.

Adrienne of DC 10:32AM February 28, 2009

Anyone who argues that bailouts aren't socialist is crazy. Taking hundreds of billions, if not trillions of dollars (if Obama's 800 billion plan passes, wed be at $1.5 tril) of taxpayer money to hand over to big business goes against everything this country is based on. Free market enterprises whine about government interference any other time, but when it works the other way theyre standing in line, hands out, waiting to rob the pockets of Americans. Government interference in business includes government help to private business. The private sector is designed so Americans are responsible for their own fate. A totalitarian, government controlled economy is absolutely absurd, and the financial and automotive industries are pretty much already there. For Congress and the automotive industry to label $25 billion as "spare change" and a "minor bailout" is ridiculous. $25 billion goes a LONG way. It takes a lot of hours from hard-working citizens to produce that much government revenue. People bashed Bush like crazy for bailing out the financial industry, calling him a "pseudo-Republican" and a "complete Socialist, who went against everything his party stands for." Is anyone complaining about Obama's plan, which is BIGGER than Bush's? I haven't heard a minute of complaining on CNN, now that we've entered the "Obama era." Quit being so blind people, our elected officials are blatantly violating our rights as citizens, and going completely against what our founding fathers set up. The problem is that with the abundance of corrupt, lying politicians (and the massive problem of American apathy), even if we could convince each other to vote these pigs out, we'd just be sending in a new herd of the same-old same-old. The problems with party-lines have grown so large, that we will spend the rest of this country's existance listening to left-wing liberals and right-wing conservatives argue like toddlers, and Democrats and Republicans controlling everything. Democrats and Republicans will continue to hold complete control of everything, and hold opposite views on purpose just to tick us off. They will vote in line with their party, refusing to look at what a bill even is. (Patriot Act anyone?) This will all lead to the demise of the greatest country in the world, UNLESS we step in and do something. Fellow Americans, we need to step outside the party-lines ourselves, and quit voting for the major 2 parties "just because no one else can win." If we band together, we can oust the corruption of party-America, and vote in a new system of officials, who spend their time looking out for us, rather than protecting their own wealth, hiding their tax issues, and fighting with each other at all hours of the day. Obama promised a "bi-partisan America." While he hasn't even been in office a month yet, if things have changed at all they've gotten worse. Parties in Congress stuck strictly to their lines on the $800 billion stimulus. We need to change NOW!

who cares of PA 12:44PM February 03, 2009

All I can say is,
This Bailout is not to save the blue collar workers jobs but to continue the money supply to the greed of the upper Management. Do you not see no matter what the government does will not help the masses of working class people. Do you think that the government can borrow money from The FEDERAL RESERVE bank at that amount without creating an enormous debt to be paid, because interest on 25 Billion is no chump change. Who benefits? you I highly doubt it unless you are part of the Rich and elite. So if you want to live in a dream world where you think this is going to go away soon your mistaken.

Roger 6:24PM January 01, 2009

These bailouts are bad news for American taxpayers.
Protest the auto industry bailout by signing the petition at http://www.autoindustrybailout.com/petition
Bailouts create a severe moral hazard, encouraging high risk and bad business models.

Auto Bailout of NY 12:33PM January 01, 2009

1) Today, We gave $9.4 billion dollars to GM because of its impeding financial failure.
2) A big part of GM’s woes are a result of its failed financing arm: GMAC.
3) GM owns a 49% stake in GMAC
4) The Chairman of the board of GMAC is J. Ezra Merkin.
5) In addition to his duties as chairman of GMAC, Mr. Merkin runs a $1.8 Billion dollar hedge fund, Ascott Partners, in which he charges investors a 1% under management and 20% of profits fee.
6) J. Ezra Merkin invested 100% of the 1.8 Billion dollars into a ponzi scheme lead by Bernie Madoff. (This shows he knows nothing of derivate trading, but it also shows he knows nothing about asset allocation or diversification).
How in the world can we give $9.4 billion dollars to a company that has a subsidiary, whose chairman just lost $1.8 Billion dollars in a ponzi scheme? Does anyone think we have all lost our minds?

Joe of FL 12:25PM December 19, 2008

Bailout, loan or not, the taxpayers, autoworkers and even parts vendors must, must, must hold the big automaker managers accountable. Keep them on the hot seat! Don't let them fool you, they are responsible for a great deal of the problems.
Problems have been building at these companies over a very long time and they've limped along when times were good, but never managed to strengthen their businesses. Now their pain is ours. Don't let them spread it around and dilute their culpability. Management is largely to blame, make them accountable!

GJ of VA 9:46AM December 19, 2008

Among other principles, this is the death of the free market. If we bail out these three, regardless of them being a global super-company and other companies watch it.... What is to stop them from asking for aid as well? There are a few major things to consider when looking at this plan:
(1) As I said, What is to stop others from asking for aid. This plan supports larger companies leaving smaller companies without the opportunity to take their place. America has grown on innovation, risk-taking, and free market principles.
(2) Secondly, to the position of job loss. The big three currently have shown no assurance that they will not simply slip into the same problems that they are experiencing now. This proposition sounds more like a extension for the time that these jobs exist, while a debt accumulates hurting the economy even more so.
(3) Finally, it all ties together with a few people keeping jobs for an extended amount of time while the free market is crippled by costing tax payers and showing them that there is no need to take risk. If nobody takes risks, there is simply no free market. People will not change their life style until they reach a level of dissatisfaction so great that they would do absolutely anything to reach a higher level of living standard. To place imaginary money in the form of debt gives people a false sense of a safety net to the nation of business and tax-payers alike. Eventually this money must materialize, but with things as they are, it will not materialize in America. Eliminate the safety nets and encourage risk taking.

Cory of OH 1:58AM December 19, 2008

This is a blatant show of corruption and ignorance that it makes me despise the actions of this congress. It does show Americans that the government is more than willing to bailout failing corporations who have made mistakes for decades. They are also showing how socialist they are becoming. Good companies prosper and bad ones fail...that used to be one of the great things about America, but none of that really matters...only small businessmen are really allowed to fail nowadays. Beware of this new semi-fascist government. The people must take accountability for the actions of their government and force them to reform...before it is too late.

of MT 8:51PM December 18, 2008

GM, Ford, and Chrysler should ask the Chinese government or financial industry to borrow the $34 billion dollars that they need. China has all the U.S. dollars it cumulated from exporting to US and buying US debt. If the car manufacturers fail then the Chinese would have first crack at purchasing three large functioning car firms that already sell their products world-wide.
US govenment can't object to a foreign government buying companies that they are will to see fail. It can't argue that the companies are vital to US security. Firms have to be worth more the $34 billion dollars even in a firesale.

Betty Culpepper of MD 8:08AM December 11, 2008