Car Czar: Auto Companies Will Need More, A Lot More 34 comments
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Here’s some surprising news. Steven Ratner, the chief auto adviser to the Treasury, said that the auto companies may need considerably more money than they indicate in the plans presented to the government.
Here’s how Bloomberg TV reports it:
General Motors Corp. (GM) and Chrysler LLC, which have requested as much as $21.6 billion in additional government aid, may need “considerably” more than that, said Steven Rattner, the Treasury’s chief auto adviser.
“It could be considerably higher, I won’t deny that,” Rattner said, when asked whether U.S. aid sought could rise. Rattner spoke in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” scheduled to air today.
“What they’ve asked for depends on them achieving plans that are somewhat ambitious,” Rattner said. “Like all management teams they tend to take a reasonably, slightly perhaps, optimistic, view of their business. So it could be more, I can’t rule that out.”
Greg Martin, a GM spokesman, said today its restructuring plan has “a conservative outlook.” The company will continue working with the task force “and we’ll keep them informed of our liquidity needs,” Martin said in an e-mail.
Chrysler said in a statement its plan is “realistic” and “conservative.”
“With the remaining $5 billion loan request, Chrysler is viable,” the company said.
Well we are all now unfortunately not at our first rodeo. We’ve heard this one how many times before? At least Ratner isn’t trying to pull the wool over any one’s eyes. I suspect he’s watched enough Congressional grillings by now to know that zero surprises is the only way to keep ones scalp.
He does mention in the interview that the bondholders and the auto companies have yet to reach an agreement on a debt for equity swap. He said the government is considering placing a deadline on both parties. I think we saw that once before with GMAC didn’t we. Deadlines came and went, no deal was ever reached, the government said never mind and the bondholders got bailed out. Any bets on how this one plays out?
Could we please just use the bankruptcy code this one time. Do we have to keep making the same mistakes over and over again. Somebody please tell me this one will turn out differently.
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Being that you want to go there, have you been to the facility I am made mention of? Do you have any clue as to what I speak?
On Mar 23 04:26 PM 303820 wrote:
> Here we go COBRA bad mouthing the UNITED AUTO WORKERS again.
> As I stated before what has destroyed Detroit auto is the Asian that
> were invited to this country to destroy the unions...Those unions
> that created of the American middle class... that class of people
> that still has buying power to keep the economy going (what ever
> is left).
I'm an auto worker...I don't get cross-country tours of GM plants!
Let me also remind you that the UAW is not the reason people are not buying cars...the contrary...if people were making union wages perhaps they could afford to pay their mortgages and buy new cars, and we wouldn't be in this freaking mess!
If we all redistributed the wealth of the US, would this be a good thing?
As for the tax bracket issue. How would you propose innovation and taking of risk on ones abilities, if no matter what we do or come up with, your reward is for naught? This is where I have a quandary.... Its not a beef with the union, its not with everybody making good money, it is about differentiation!
This, is what separates America from the rest of the world, no? That's the "American dream" that people are willing to come here broke and near penniless, to try and build a better life. If it not for that goal, why leave their home and the security of family and friends?
My mother and father came here in 56 from Holland. Dad was an electrician (union no less) and mom was a seamstress. They had two children at the time and mom was pregnant with #3. Hell they didn't speak the language, there was no such thing as the church paying their way, there was no tax breaks for them, no budge on if they spoke our language, if they could not adapt, they would go hungry and move back to Holland.
This is what drives me! This is why I push myself from 5 in the AM till 11 or 12 in the PM. I will be damned if I am going to go broke, my parents worked to damn hard to give me a chance at the American dream and I'll be damned if I am not going to work my butt off to get it. Why should I be taxed more than someone else, why should I be treated any different than anyone else on the street, and why in God's green Earth should I have to pay any money into any government that does things I disagree with?
Again my beef has nothing to do with the union, it has to do with every individual having the ability to work as hard, but, also have whatever extra success he can attain if willing to work harder, smarter, and more efficient than the person next to him.
????
i'd hope that he'd move up..and I'm sure he would also!
I have no desire to tell you, you should not be paid a fair wage for the work you do.
Your statement, but you make a lot more money. That's like telling my 15 year old that her A's are going to be discounted down to B's because everyone else needs a better grade. In the USA the system is broke! We are taught from a young age that if you want the brass ring, its yours to take. Every time you get near it, they pull it just a little bit further out of reach. Why should my daughter work her tail off and not party and not date boys and generally be a model child, so someone else in her class can do all those things and take part of her grade.
The harder I work, should have nothing to do with the amount of tax I pay!
Ill pose it this way, would it not be fair for everyone that makes a taxable wage to pay the same percentage? And taxable is, pick a number above $40,000 single and 60 Married. Can be any number....
Have a good night!
Your 15 year old's A's will get her to the 39% brk.. and that's reason enough to study! if the thouth of paying more taxes will keep her from reaching that brass ring? thats a problem not of the American system!
As for a fixed tax ? if it would work I'm all for it!
Be American!
Buy American!
God bless America!
On Mar 23 08:29 PM Cobra 1 wrote:
> I don't know anymore or any less than you about whats right or wrong.
> I love America, I just hate where its going!
>
> Have a good night!
I admire your loyalty to your former employer. If all GM employees felt as you do, I doubt we'd be witnessing the potential demise of this once great industrial giant.
I also regret you disn't diversify your retirement holdings to a greater extent. The lessons learned from Enron and others are painfully evident.
As regards your view toward imported vehicles, however, I must disagree. You don't really believe cars would have become as good as they are without competition from outside Detroit, do you?
38% is just the beginning of it. Add state, sales and property taxes to that. All told it easily totals over 50%.
That's right, HALF our incomes for the privilege of supporting our political class and their millions of adherents.
Like Mrs. Thatcher said, "The problem with Socialism is eventually you run out of other peoples money." No kidding!
On Mar 23 02:26 PM AmericanVOR wrote:
> Voices from the Bottom Row: A View from Within GM
>
> I read a lot about the public perception of the autoworkers. Since
> the comments I read are often repeated, I can only surmise that a
> lot of people are very interested in talking about work dynamics
> and habits of the typical autoworker. So I decided to give some
> perspective from an employee’s view.
>
> I am a body structures designer for GM and I use Unigraphics to do
> my job. I am currently working on three different programs. I
> am designing parts and creating design studies for four different
> engineers. I organize my work by timing of the due dates, and I
> strive to meet them. I also attend meetings when my parts are required
> for review.
>
> I go to lunch around 11:00. This usually consists of me reaching
> from a brown bag and eating leftovers from the night before (if we
> happened to have time to cook between school conferences and other
> seemingly endless things that pop up as the weeks come into focus).
> Most times, I eat at my desk and read. Often, work does call during
> lunch and I return to designing or reviewing while I eat. That’s
> ok with me, and the only compensation I ask for shows up in my checking
> account twice a month.
>
> I am paid for 8-hours, but I am not a clock watcher. I work what
> it takes to get the job done. When special projects arise that require
> a volunteer, I raise my hand.
>
> I am 41 years old. I have a wife with major health issues. She
> has been hospitalized fifteen times since January 2008. It is not
> over yet*. I also have six-year-old triplets. We all attend church
> on Sundays and Wednesdays. Overall, we live rather modestly. Aside
> from some uniqueness, I think we represent the basic lifestyles of
> the most of my co-workers.
>
> I also attend Central Michigan University in pursuit of my Bachelors
> degree in Vehicle Design Engineering. I have an Associate’s degree
> in Vehicle Design from a community college and a Designing Engineer
> certificate from Michigan Technological University. I have paid
> for most of my classes out of my own pocket. GM paid once I was
> hired, but I got myself there. Due to cutbacks, GM has relinquished
> the tuition reimbursement. I will still go to school.
>
> I hope you understand that, when I read about lazy autoworkers, it
> hits a nerve with me. I am surrounded every day by men and women
> doing the same thing I am doing. We are fighting for our jobs and
> not a single one of us feels entitled to anything.
>
> I am not UAW. However, the common opinions of the UAW is decades
> old. Yes, there are bad eggs in every job and there are still steps
> to take. However, if you have been following for the last five years,
> you know that the UAW at GM is barely a shell of its former self.
> And there are still metrics in place that will further the progress
> to being competitive with the foreign business model.
>
> There are times when we’re slow, as is the nature of programs winding
> down and ramping up, that I feel guilty at the end of the day. I
> hate not being busy. I WANT to EARN my wages.
>
> I don’t believe I am unique. I believe most everyone is like me.
> I want to right wrongs. I want to produce. I want to make people
> happy and, if I could find a way to change the perception of the
> company I work for, I would. I know we are making the best product
> we ever have, and I know it is world class. I know we have made
> great strides in quality, styling, and cost cutting. We are doing
> way more with much less and I feel GREAT PRIDE in being a part of
> GM.
>
> It hasn’t been fun for the last 3-4 years, but I still love my job.
> I have survived headcount reductions, but they keep coming. I know
> what might be ahead for me. I accept it as well. I will lean on
> my faith, but I fear greatly the reality of what will happen to my
> family. Still, I would regret the worst happening without my voice
> being heard in support of my GM brothers and sisters. I cannot change
> my external environment, but I can choose how I react to it. This
> is my reaction.
>
> GM was a major factor in creating the middle class. GM was there
> to help build war machines. GM has been there with vehicle aid after
> natural disasters. GM was there to help keep the economy going after
> 9/11. GM is not just a car company. It is an integral part of American
> history.
>
> People have strong opinions about autoworkers, and I’m certain they
> are rooted in varying degrees of history and truth. However, I am
> here to tell you that today, I represent the general employee base
> here at GM. Nobody denies the fact that we have made some blunders.
> We lost our way in the eighties and we stumbled through the nineties.
> But this company is 100 years old. Along with Ford and Chrysler,
> our cars and trucks have been the lion's share of choices when it
> comes to parades, car shows, cruises, farming, construction, contractors,
> movies, children’s' automotive dreams, and adults' automotive passions.
> From our earliest models of class and elegance to wartime transformations,
> we've built history. From dependency on oil to breakthrough technologies
> in alternative fuels, we are building the present. With a competitive
> global business model in place, a workforce of passionate men and
> women, and seemingly endless opportunities to explore new technologies,
> I know we can build the future!
>
> Peace be with you,
>
> Dominic Gerace
>
> *Update for: As of march 8th, 2009, my beautiful wife is no longer
> with us.