Detroit WILL be Bailed Out!

It was brought to my attention by a manager at a local dealership that the Automotive News sent them that Detroit has reached an agreement with the Senate.

The stipulations are:

1: The money (as per the auto manufactures original request) is a LOAN. Not a bailout.

2: It is stated in this e-mail that the three auto manufactures will get 25 million to split between them.

This money is to be used by the manufactures to RETOOL to produce the fuel effecient cars that the government is saying they must make.

This is NOT a blank check. It's not money that will never be seem again. It is in essance what Iaccocca did with Chrystler in the early 80's.

Again, the auto manufatures did not ask for a bailout, the media spun that to it's own ends. It is a loan by the government that will be paid back

Just thought all of you here on ATS would want to be the first to know.

The source is Automotive News unfortunatly I do not have a copy of the e-mail so all the doubters can line up... I trust the source.

Oh boy.....

25 million.....i can hear them thinking.....what will we do with so much money. Even split three ways that still leave each one with......8,3 million.

Somebody better keep an eye on these guys.....money corrupts you know.

Well . . . it's actually $25 billion and it isn't a lock just yet . . . they have to submit business plans to be profitable before they're even considered for the 'loans'.

This is not a done deal yet.

Your math is right on! And I thogh the same thing. But that is what the e-mail stated. I'd love to fan the flame and say they'll get 30 million a piece, but that's not what Automotive News stated. I'm just saying what they said.

ummm......are you sure it wasnt 25 BILLION, split three ways.

This was already approved in September - the recent hearings have been about getting the $25B without strings or stipulations. It does GM no good to get $ to retool for fuel efficiency when they only have enough cash to keep the lights on through the end of the year.

Yes... B... As In Billion. My appologies.

As the e-mail stated the automakers have a handshake deal. The business plan looks like it might be propaganda to keep to people calm about them getting the ammount.

Sorry dude, i could'n resist but seriously

LA auto show this week and the general mood around GM,Ford en Crysler stands are pretty dim, i've heard. No big shows, no goodies ,no nothing......bummer!!!!

Japanese cars are giving away a pretty big show on hybrids. And european manufacturors are advertising on their blue diesel cars but not much from GM, Ford and Chrysler.

It's true, the LA Auto Show is a bit grim but as a top exec stated in Automotive News when asked about the auto show's timeing: "It's hard to throw a party when you're dying."

Chevy came ot with the ll blacked out camero. Looks pretty nice, but it's very toned down. to have an auto sho on US soil at this time... There's not a lot of flash. It is grim. And the industry knows it. I think that's hampering even a lot of the imports from gloating.

I got to admit, as a new member here, I saw this as my first big post. This was info I couldn't wait to post here. I know there will be critics saying theres no proof and all that, but like I said, I truest the source.

I just couldn't wait to have my own bang up thread You all got such great subjects!

Your source is good...just a little late in getting the news to you.

You know that the auto industry already received $25 billion to improve the fuel efficiency of their vehicles. This was slipped under the radar at the same time the $700 billion bailout for the bankers was passed.

blogs.consumerreports.org...

My question is - if they've already received $25 billion, why should Congress be giving them another $25 billion??? What happened to the original $25 billion in funds?

reply to post by Jkd Up

---

I think the 25 billion that is in reference to was the 25billion for manufacture of more fuel efficient vehicles and not the 25 billion for the current bailout. JMHO!

Ok, so lets just look at GM for an example here.



I fail to see how a little over $8 billion is going to do anything besides allow the fat cats to cash checks with lots of zeros for another 3 months.

This is my position: Let 'em burn. Let it all burn. Let's just quit pulling up, put it into a nose dive, and use what little juice we have left to accelerate towards the ground, however far down it is. I'm tired of bailing water out of a sinking boat when nobody is interested in fixing the hole that's letting all the water in. Let it sink so we can at least begin swimming to the surface. Maybe we'll wash up on a fruitful island, maybe the sharks will get us, but we can't keep bailing forever.

Yeah well,

Don't be to impressed with some of these posts.
Somebody just posts something contraversial like "I want socialism!!" and watch them fly. But the OP actually never returns or replies.

I think that's a shame. If you're gonna post something be sincere and defend it to your last breath 'cause some of these guys don't care what you write, they just want to disprove you. (sorta like a hobby)

Good luck with posting

Ps: car industry here in Europe is also fearing the worst. Especially Daimler and Opel. They are just as scr*wed as the big three in america when it goes south......hope they'll get the loan..

From what I gathered, this is the same $25 billion.

In the original package, there were a whole whack of strings attached and it was limited to retooling for 'greener' pastures, so to speak.

Those strings apparently tied this whole thing to a lag of between twelve and eighteen months before the car companies could get their dirty little fingers into the pie . . . clearly if (and that is a BIG if) we are to believe what the corporate panhandlers are saying, that'll be way too late.

So, they're working an end-around to get the money sooner and to use it for things other than environmentally responsible production.

That means they'll still be able to invest in China, Brazil and Mexico where they don't give a crap about the environment, worker safety, social agendas and human rights.

As an aside, you know how the Chinese goverenment responds to 'grievances' where workers allege employer violations of their rights . . .

I'll give you a hint . . . Tiananmen square.

I think it could be to allow them time to turn around. GM, loosing over 40 Billion a year is not going to last long, bt I don't think that this is ment to save them.

Just like the way it was explained (again what they do and what they say they'll do are two things) that the banks wold not be bought completely out, but he toxic bonds would be bought. Making the bank more stable by strenthing thier weakness at this time.

Again, wether that's what their actally doing... Well... This is ATS not FoxNews..........

As an intresting side note: GMAC is trying to get bank status so they can get some of the $700 Billion bailout. The leaders at the General have shown to be crafty thought the years and this shows their true colors. I as a person, think that any and all "new" banks that are made after the date of the baiout should NOT be allowed the money. But heck... I didn't think the bailout was a smoking idea in the first place.

I noticed that too. It's a damn shame that GM didn't have this kind of fire under their butts to make cars that America would actually buy when gas prices were at their peak. But threaten to compromise the lifestyle of the CEO and whoa - suddenly you have a problem that needs immediate attention. Jerks, the whole lot of them.

reply to post by Jkd Up

---

GM is actually only a minority owner of GMAC which is owned 51 percent by Cerberus Capital Management. . .

Now if that name sounds a tad familiar . . . guess who owns a majority of Chrysler . . .

Yup . . . Cerberus.