Lawmakers: Auto Bailout on Verge of Collapse

[qrayjack]

Lawmakers: Auto Bailout on Verge of Collapse
AP

WASHINGTON — Imperiled automakers and their union worked feverishly Wednesday to sell a skeptical Congress on a $34 billion aid plan, promising labor concessions and restructuring. The Senate's Democratic leader said there still weren't enough votes to tap the $700 billion federal bailout fund to prop up the foundering Big Three.

One day before the chiefs of the auto companies return to Capitol Hill to make their urgent cases for bailout billions from the fund, Sen. Harry Reid told The Associated Press in an interview, "I just don't think we have the votes to do that now."

MORE

Hopefully, but one wonders if this Reid statement is a smokescreen. We've heard Dems, Pelosi notably, say there will be a Detroit bailout.

[elmerck1]

I think there will be some kind of bailout, but not near what they are asking for.The best way I think the auto cos. can get out of this is for chrysler and G.M. combine, and then start selling their cars at greatly reduced prices, the people would buywhen they can get credit.The market right now has money to lend for car sales, so if they have to take a reduced price for their cars, all the capital they get can be used to get them back on their feet.Another way they can get back, is to build about three model cars and sell them.We have too many cars and to many dealers, and the crushing plants are having plenty of business, crushing all those old used cars.All these crossovers they are building could be reduced to one model from each mfgr. and that would reduce the gkut of cars in the market.You ride around the state and you see lots full of cars.I am talking about acres, and they are just setting there gathering dust.It is no wonder the market is full and no one can make money, because of all the regulations the Gov.has put on the mfg. which runs up the cost.A moritorium could be put on all those laws, so cars could be built without all that junk like Sirius radios and aluminum wheels and all that other junk that is put on them. The price reduction could get people to buy more cars, when they saw the new cheaper prices.Paying $32,000.00 for a piece of junk is not appealing, and all the plastic on these cars should be a lot cheaper than sheet metal, and believe me, there is a lot of plastic on these new cars.