all of u have good comments . the real reason we are in this auto mess is because americans thru republican anti-unionism have convinced people that companies can govern themselves and dont need regulation. just like republicans think a small governtment will work fine for the u.s. i think 8 years of bush has shown us that we need govt programs to keep our country working. america makes the best cars and trucks period. toyota tundra, the new piece of junk shoved down the throats of americans cost more, has way worse fuel mileage, far less standard options, and canteven handle a 26-foot toy hauler loaded at 10,550lbs. aah but my 2006 ford lariat does awesome with 11mpg loaded.americans cant compete financially with the world even with foreign factories here because we have 3rd highest corporate tax-rate and absolutely no tariff protection. so at the end of the day and u are still in opposition of saving the single-handedly most important part of what american influence from the beginning of the industrial revolution all the way to u sitting at home in your wonderful home with your loved ones ask yourself this, or better yet look at ur car keys and see if u have foreign or american. there is no blood on these american hands!

Sheldon, I felt it would be good to return to this forum, however I am not staying much with the blog.
Just for the information venue:
One thing that is being overlooked is that when you compare the entire auto industry from 1950 to 2000, you get this. In the 50's the quality was not good and neither was the manufacturing tolerances nor materials. Life expectancy for an auto 100,000 to 200,000 miles tops. These figures are both U.S. and Europe. If one looked at a European junk yard as a U.S. citizen you would wonder as the majority of "junk" would have looked in excellent condition. Cars cost more over there and they took good care of them, but they wear out also. When it costs more to fix - it is time to buy new. Our road conditions are worse and we really abuse our vehicles.
That was than.
Another factor that is missing is that the world population has doubled in this time frame. These people also buy cars, along with the emerging middle classes in developing nations. Therefore, there was an increase in demand. Consequently, this demand was met by increasing manufacturing capacity. All good so far, but!
Since about 1975 vehicle life expectancy has improved, in fact it has doubled and this creates a Rolls Royce syndrome where one feels that the purchase will last near forever. This tends to negate the need to buy, and when required, the time frame between purchases increases dramatically. Run this into a economic decline and you have mass overcapacity.
That is where we are at. In good times there are more cars than are required. We now have the same glut that exists in housing - and the same problem.
The difference between the two is that letting this industry go to hell means that it will take the world economy along for the ride. All the suppliers are already laying off and this means more uncertainty
and pushes confidence to new lows.
Confidence is the major issue. Hope is eternal, but it frequently gets used for ill purpose as these type of conditions are fodder for some of history's worst leaders.

How about the banks who were given the bailout $ loan that money to the car industry rather than hording the money & buying more banks? US cars are heavily taxed when sold in a foreign countries.I drive a foreign car,however,perhaps it should be an even playing field.This loan to the car manufacters will only delay the inevitable...bankruptcy.It's too little too late.

First we need to cutoff Iraq / Iran and any middle eastern country from aid, support, and supplies - including trading. The we need to stop purchasing fuel from them, which would make fuel go back to where it was a few weeks ago. When they are losing millions because we are not buying the price should thene be fixed ay $10 - $20 a barrell - were paying for everything else why this? Say no to Arab money.

This country was built on capitalism and and the benefits received by allowing capitalists to operate. This whole socializing of America can only weaken the country in the longrun. Businesses which are unprofitable need to fail. If there is a market for a product, a new, more inovative buiness will take the place of the old.( Ford, GM, Chrysler may fail but a new car company will emerge) Money for that business will come from investors who stand to profit.(not taxpayers) If there is no market for the product, let it die. The American TV industry died. So what? The same is true for many other products that used to be American staples. New industries replace old, workers re educate and America prospers. The problem with this country now is that everyone has an "I've got to have it now!!" mentality. And the idiots in Congress go along with it ( for their own personal political gain..not because it is the will of the people). Simply put..If government ( and I mean Jimmy Carter, Bill Clinton and Barney Frank l) had not pressured fannie and freddie for lower mortgage underwriting guidelines none of this economic disaster would have happened. The 200 yr old formula of work hard, save for enough down payment, and buy a home you could afford was working fine. If you can't pay for it, you lose it. That will become someone else's investment opportunity. Let the dust settle, stop pumping taxpayer money into losing causes. Economic ups and downs are part of life. People need to toughen up a little bit. It may hurt ( and I mean MOST people) but it is necessary. This generation has taken the fruits of our parents hard labor and blown it on our own selfish gratification which has doomed the next generation to a much, much lower standard of living. We should all be proud parents.

All the cash that the "Big 3" needs is sitting in new unsold cars and trucks on dealers lot that aren't selling...so, you want to "create" the jobs to build more cars that nobody is buying.Let's load some more anchors on the Titantic!
Restructure,start with a clean sheet of paper and have plants and people building products BETTER than the Japanese plants in this country.

I like potatoes

they only proffited 14 billion last quarter, not sure thats enough for a bail out

the illustrus government in all it's infinite wisdom HA HA ! should make these unions take less money for wages and force the auto industry to go to hydrogen assist power generating units in auto's . and get leverage from our depdence on oil . Now that gas prices are below 2.00 $a gallon it has shifted our attention from where it's needed .

Mr Liber. It is no suprise that as a CEO you are are anti-union as well as anti anthing that betters the country as a whole [which happens to include the 'lower class']. As a result of being a lifelong union member, and because of the wages and benifits I received, I have been able to contribute to the finacial health of my country by purchasing more than one new home, several new autos, and having six figures [at one time] invested in the finacial markets. Also I may not have to depend on those few remaining taxpayers, [the lower class], to care for me in my golden years. When people in your position [CEO] decided to eliminate millions of jobs that contributed to the overall finacial health of this country, in order to increase the profits [greed] of a few this country has been in a study decline. I am by no means a finacial expert but it seems to me that no jobs, decreased tax base, no money to be spent, adds up to the exact point this country is at. Eliminating more of the jobs that allow us [lower class] to contribute would seem to only worsen the problem. I wonder how many Wal-Mart workers, other than store managers, have purchased a new home, auto or invested in the finacial markets based soley on their income?

Mike:

I think you are right that the oil companies can manage the automotive companies better than the government, but there is more to this story. While the Big three have not been the most farsighted in their development strategy and yes, they may have some bloated unions and bloated egos, they have also been indirectly and directly influenced by the Oil industry to operate in a " business as usual" manner.

If Exxon, a company that made record profits last quarter, is not spending anything substantial on renewable energy resources, and gasoline prices are less than half of what they are in Europe, what message does this send to the American automotive industry?

It sends the message that gasoline is here to stay and any innovations in developing products that run on alternative fuels or that can be more fuel efficient will not be supported by the American Petroleum Industry.

And that is a very strong message. After all, there is no other viable and convenient fuel source for the consumer to buy. In fact when you look at the transportation industry as a whole and all of its suppliers, fuel is arguably the most important and critical piece of the supply chain.

I have more on this on my blog, if you are interested

http://banderbind.wordpress.com

Paul

No, no, no! We should not be talking about the Big 3 oil companies buying out the Big 3 auto makers. But a low interest loan would be in their mutual best interest. The government could match the amount loaned, but that money, at a zero interest rate would only go to convert US factories to make green cars, motorcycles, buses, aircraft and trains. We're alll going to need to make sacrifices. The interest earned from the loans could help the Big 3 oil fund alternative energy projects and new jobs. When the government fund is repaid it can then reuse the money to fund energy research. Come on people – drill baby drill, deep into your minds!

Why is GM sending BONUS CHECKS to their retired workers this Year????????