Carmakers may be next up for bailout

[Bindare_Dundat]

White House confirms talks with auto companies about possible help from $700 billion program.

NEW YORK (CNNMoney.com) -- Bush administration officials have had talks with the nation's automakers about providing possible federal help for the cash-starved companies, a White House spokeswoman said Monday.

Spokeswoman Dana Perino, responding to questions at her daily press briefing, said a decision had not yet been made about whether federal help will be offered to General Motors (GM, Fortune 500), Ford Motor (F, Fortune 500) and Chrysler LLC.

A number of experts have expressed concern that the automakers, which have suffered a sharp plunge in sales, could run through their cash reserves by next year.

The automakers could get help through the $700 billion Wall Street bailout passed by Congress earlier this month. The bailout was designed to prompt banks and securities firms to loan money to businesses and consumers, but automakers might qualify for help through their finance arms, Perino said.

[odilly]

why do those company's need help what a crock of shit, i would like to see how much some of these vehicles cost to make against what they charge...i don't care how pimped out a pick up truck or car is there is not 30 000 dollars invested in the production of it... maybe the tits in charge should lower their prices so they are only making 15 or 20 percent then people would buy then....oh my god money in the economy from spending isn't that what helps stop recessions

[hmontaq]

Or plainly make a better product the people will want to buy

[Hereford]

why do those company's need help what a crock of shit, i would like to see how much some of these vehicles cost to make against what they charge...i don't care how pimped out a pick up truck or car is there is not 30 000 dollars invested in the production of it... maybe the tits in charge should lower their prices so they are only making 15 or 20 percent then people would buy then....oh my god money in the economy from spending isn't that what helps stop recessions

There is more money tied up in union costs (which have no real value to anyone but the recipient) than there is in the actual materials used to build the car.

[Cromespyder]

if they are going to be bailed out they better be forced to innovate more especially as far as fuel efficiency. no reason they cant make 60mpg+ cars, the technology has been available for decades.

[Hereford]

The only thing a bailout would do is secure the pensions and payoffs to organized labor.

Since the Dems are getting back in, look for it to happen.

[OzmO]

Thanks comrade BUSH for starting America on the path to communism and setting the example for the next administration.   

[Decker]

It's executive compensation that's exploded by a factor of 500 times.
http://www.autonews.com/article/20080527/ZZZ_SPECIAL/830915588

Ford's new CEO, Alan Mulally, got $27.8 million in salary and bonus in his first few months on the job, including an $18.5 million signing bonus.
http://www.usatoday.com/money/autos/2007-10-09-auto-exec-pay_N.htm

The Unions....why the unions have enjoyed cost of living increases across the board.  Damn them all to hell.

[shootfighter1]

Bullshit!  If this comes up next, we have to flood our representitives with complaints.
Bush is a socialist!

[CQ]

The thing that has me falling on the floor [and pls notice back in my posts I was flamed when I predicted an economic crisis as we were flooded by private jets and that was all the talk here, and I was correct].......is these companies who got money for the bailout, most of them are domiciled here and shave us off cash instead to dodge the US tax. One company in particular is one of our biggest employers

Our economy is funded by offshore companies, irony is they are based here to avoid high US tax, but got the US taxpayers money to bail them out