Foreign Auto Makers Won Billions in Government Subsidies

By
Tuesday, December 16, 2008 at 8:54 am
General Motors production line. (Flickr: steelcityhobbies)

General Motors production line. (Flickr: steelcityhobbies)

To hear Southern Republicans tell the story, the financial burdens facing Detroit’s automakers are self-made troubles to be settled by the laws of Adam-Smith capitalism.

“We don’t think it is the role of government to intervene,” Sen. Jim DeMint (R-S.C.) told the Fox Business Network last week. “We need to let the market and the laws work the way they are already in place.”

Illustration by: Matt Mahurin

Illustration by: Matt Mahurin

Yet this argument — that the government has no business interfering in free markets — ignores an increasingly frequent tradition among Southern states, which have fronted billions in local taxpayer dollars in the past two decades to attract foreign auto plants. Those incentives, arriving in the form of tax breaks, training for new employees and even land, have enticed BMW to South Carolina, Mercedes to Alabama and Nissan to Tennessee. The result of the government subsidies has been the steady emergence of the South as an auto-manufacturing powerhouse. Some are dubbing it the “New Detroit” –  a region where real estate is cheap and the labor’s not unionized.

Not coincidentally, these Southern states are represented by the same coalition of GOP senators who led the fight against the recent Detroit bailout proposal. That legislation would have provided $14 billion in emergency bridge loans to General Motors and Chrysler, both of which say they lack the finances to survive the month. Rallying behind the animated opposition of GOP Sens. Bob Corker (Tenn.), Richard Shelby (Ala.), Mitch McConnell (Ky.) and South Carolina’s DeMint, Senate Republicans killed the legislation.

The White House has since stepped in to offer assistance from the $700 billion pot allocated earlier in the year for the Wall Street bailout so that the companies don’t go bankrupt during its tenure.

On Friday, the day following the Senate vote, Shelby told CNBC that if the Big Three had only managed their business operations as well as the foreign companies, known as transplants, they wouldn’t be scrambling now for a taxpayer-funded bailout.

“You look at the South,” Shelby said. “You take — not just Mercedes in my hometown — but BMW, Honda and all of them. These companies are flourishing with American workers made in America.”

But that flourishing didn’t come without significant taxpayer help. Shelby’s Alabama, for example, secured construction of a Mercedes-Benz plant in 1993 by offering $253 million in state and local tax breaks, worker training and land improvement. For Honda, the state’s sweetener surrounding a 1999 deal to build a mini-van plant was $158 million in similar perks, adding $90 million in enticements when the company expanded the plant three years later. A 2001 deal with Toyota left the company with $29 million in taxpayer gifts.

Alabama is hardly alone. Corker’s Tennessee recently lured Volkswagen to build a manufacturing plant in Chattanooga, offering the German automaker tax breaks, training and land preparation that could total $577 million. In 2005, the state inspired Nissan to relocate its headquarters from southern California by offering $197 million in incentives, including $20 million in utility savings.

In 1992, South Carolina snagged a BMW plant for $150 million in giveaways. In Mississippi in 2003, Nissan was lured with $363 million. In Georgia, a still-under-construction Kia plant received breaks estimated to be $415 million. The list goes on.

Supporters of these deals contend that the economic activity spurred by the arrival of the automakers is worth the up-front costs. Yet some experts say that, considering the ever-growing size of the incentive packages, there’s little evidence to support that claim.

“It’s exceedingly difficult to determine whether the returns warrant the original incentives,” said Matthew N. Murray, executive director of the University of Tennessee’s Center for Business and Economic Research. “It’s just hard to show that it’s going to produce enough tax revenue.”

Others wonder if the incentive packages don’t go too far to divert taxpayer dollars from vital state services. When Tennessee courted Nissan in 2005, for example, its $197 million gift came about the same time the state was cutting 170,000 low-income adults from its Medicaid rolls. A 1998 Time magazine report found that an Alabama elementary school adjacent to the Mercedes plant was home to 540 kids in a building designed to hold 290.

“The Mercedes-Benz plant illustrates a fundamental principle of corporate welfare,” the article read. “Everyone else pays for economic incentives — either with higher taxes, fewer services or both.”

Then there’s the question of whether there’s even a difference between using taxpayer dollars to bring a company to town (as many Southern states have done) and using taxpayer dollars to keep a company around (as the Detroit bailout aimed to do). Rep. Lynn Westmoreland (R), who represents the Georgia district soon to house the Kia plant, told The Atlanta Journal-Constitution last month that there is a distinction.

“I don’t think we were doing that because of bad business decisions Kia was making,” said Westmoreland, who voted against the Detroit bailout. “We did that to get them in here, to create the jobs, to create the taxes, to put economic development into the area.”

A great deal of focus has been placed on the United Auto Workers role in the financial troubles of the Big Three, but there are complicating factors that extend far beyond the union-versus-non-union debate. Much of the labor costs paid out by the Big Three, for example, go to cover health and retirement expenses — a tab that’s largely picked up by the governments of the foreign transplants.

“They [foreign governments] use taxpayer dollars to subsidize our competition,” Ron Gettelfinger, president of the United Auto Workers, said Friday after the Senate killed the Detroit bailout proposal. “It doesn’t help our industry.”

The age of the companies also plays an enormous role. General Motors, for example, has four times as many retirees as it does workers, placing a disproportionate burden on the company to meet its health and pension promises. “It’s much easier for the transplants because they’re much younger companies,” said Gary N. Chaison, a labor professor at Clark University in Worcester, Mass.

Not that the automakers don’t bear much of the blame for their current troubles. For years, the Big Three fought higher mileage standards while focusing production on gas-guzzling trucks and sport utility vehicles — models that fell from public favor when gas prices leapt over the summer.

“None of us want to see them go down,” McConnell, the Senate Minority Leader, said last week, “but very few of us had anything to do with the dilemma that they’ve created for themselves.”

Still, there’s plenty of blame to go around. Consumers purchased those large vehicles, thus creating the demand. And contrary to McConnell’s statement, many observers argue that Congress had a responsibility to nudge the industry toward better fuel economy years ago. A 1990 vote to increase mileage standards to 40 miles-per-gallon came three votes shy of Senate passage.

McConnell voted against it. Shelby, a Democrat at the time, did too.

Comments

434 Comments

ajm8127
Comment posted December 16, 2008 @ 7:26 am

If you ask me, the fault lies with the government, no doubt. They should have increase the fuel economy standards to force the car companies down a course of forward looking business plans. That's the role Government needs to have in the free markets. If you just let the companies respond strictly to the demand of the market, you get what we have now. Profit is never in the best interest of the people (unless you still think the “trickle down” philosophy holds water), so that's where Uncle Sam needs to step in. The car companies should have been forced to pay their engineers, and not their lobbyists, as Steven Chu would say. Now, the government need to fix their blunder and keep the big three alive.


Bild
Comment posted December 16, 2008 @ 8:50 am

The difference is that the transplants are well-run, generally profitable operations that add jobs and wealth to the local economy after the one-time subsidy, and after which they don't ask for more.

Whereas the Detroit firms are badly run companies that have been losing money and jobs for years, and there is no evidence that this money will put them on the right track; down the line they will either be in a postponed bankruptcy or back asking for more money.

So the Southern states invested in growth, whereas Detroit wants an investment in decline.

And anyway, if this is the criterion, it should be Michigan, etc., that front the money to these companies.


jemerk
Comment posted December 16, 2008 @ 9:09 am

Once the US slide as the market of choice accelerates don't you know these facilities will be rapidly relocated.
Heard today that Toyota is suspending plans to build the Prius in Mississippi.


nellieh
Comment posted December 16, 2008 @ 9:29 am

None of this is new! Geffelfinger tried pointing it out a couple weeks ago and no one (congress) paid attention. Did you mention the number of vehicles the states bought from their welfare recipients? It's time this phony collegiality subsides and those Senators who are afraid of seeing their candy canes dwindle are shouted down like they are screaming for their own icing on the cake and figure this is the time to DESTROY unions! When is real filibuster going to return to the Senate? If they filibuster, make them stand in the well and FILIBUSTER! In 16 days the Democrats will have a real majority. If the Republican want to filibuster hit them in the ass with the “nuclear option!”


BillW
Comment posted December 16, 2008 @ 10:09 am

I would have to say that those investments from those states in the 90's were a very good investment, let's see employment in those states went up. Those employees are spending & paying taxes to those states, as opposed to having to go to the federal Government to prop up a failed system of UAW contracts, that are costing the car makers to have to spend $1500 per car more than those made in the ” Right to Work ” states.
Those cars made in the Right 2 work states are made in AMERICA, the last time I looked at a Map, & they're not looking for bail outs for the UAW


BillW
Comment posted December 16, 2008 @ 10:15 am

I wish they would truely bring back the Filibusters of yrs ago, make them stay in Washington, instead of fund raising in Hollywood & NYC, & while we at it NO MORE PORK, without debate.

DRILL NOW & DRILL in the USA


DownriverDem
Comment posted December 16, 2008 @ 12:21 pm

Kill the (US) Car, Kill the Country

Foreign countries are propping up the foreign auto companies in the south. Think about it.

http://freep.com/article/20081213/COL01/8121305…


markg8
Comment posted December 16, 2008 @ 3:31 pm

Good article Mike. I'd like to see a complete list of the states and the amount of subsidies they gave to foreign car companies. Many of the same suppliers that sell to GM and Chrysler sell to Honda and Toyota. It's not gonna cheap for them to have to keep their suppliers in business alone. And we all know where those costs will be passed along to.

Kill the Big Three and and any new vehicle will cost more. That's what happens when you destroy competition. And those non union workers in the south? Their wages will go down with hundreds of thousands of unemployed UAW line workers on the market. And what are they gonna do about it, unionize? All those workers may pay taxes but the profits go back to Japan, Korea and Germany. My ancestors didn't move to the USA to work as serfs for foreign companies who are subsidized by their governments. Let's level the playing field by adopting the same government run healthcare plans every other industrialized country has. Take that burden off our manufacturers and they can compete with anyone.

Another unintended consequence of killing the Big Three? Goodbye NASCAR.


Anne R.
Comment posted December 16, 2008 @ 3:55 pm

Not only are the southern senators torpedoing the American auto industry, they are also trying to bust the unions to keep them from unionizing southern workers.

As for tax incentives to lure automakers to the south, in addition to cutting benefits for the poor, I bet many of those plants, training programs, etc. benefited family and friends of the senators and political elites of those states. Also, the south receives more in tax money than it gives to the federal government. This means that Michigan, New York, and other highly taxed states in the North lose industries to the south where taxes are low. And part of the reason why the northern states are highly taxed is because their tax dollars go the south.

Funny how Republicans are against socialism except when it benefits them.


cynicalone
Comment posted December 16, 2008 @ 4:22 pm

Has history been erased?
Do people actually believe that the Big 3 have not been legendary in their extraction of subsidies from all levels of government?
The list is long, so just a few instances.

Poletown:
The facts are straightforward and not in great dispute. The world's largest automobile maker and Detroit's most powerful economic actor, General Motors, wanted to build a new plant and chose a 465 acre neighborhood which included hundreds of homes, 12 churches, 16 schools, 143 small businesses and a hospital as a location for the expansion. In order to obtain the real estate, GM needed the city government to invoke the legal power of eminent domain, a doctrine which allows governmental bodies to take, for a “fair” price, private property for a “public purpose,” traditionally construed to mean such uses as building schools and constructing highways.

In this case, however, the purported public purpose was to be jobs at the GM plant for Detroit residents. Mayor Coleman Young, a former socialist and civil rights activist, fully supported condemning the neighborhood by using the state's new “quick take” law, passed by the state legislature at the request of the city and GM. The “quick take” law permitted the state to take title to private property at once, without having to wait for the judicial resolution of legal challenges. Young organized a package of over $350 million in local, state and federal subsidies as an enticement for GM to locate the new plant within city limits. Negotiations between city hall and GM were initially concealed. When the plans were finally revealed to the public, community opposition arose, stirred in part by Ralph Nader, who sent a support team into the community to help organize resistance to the project. Mayor Young and his staff vilified opponents of the plant, including a local parish priest, Father Joseph Karasiewicz, members of Nader's team and city councilman Ken Cockrel, who tried to promote an alternative site for the plant that would have saved most of the neighborhood from bulldozing.

The cavalier attitude expressed by Mayor Young and by GM President Roger Smith about the destruction of such community institutions as churches was reminiscent of Stalin's wanton razing of Russian churches and the attitude of U.S. policymakers towards Vietnamese villages. (“We had to destroy it, in order to save it.”)

Other powerful institutions were complicit in the community's destruction. The United Auto Workers, the hierarchy of the Catholic church and the local media supported, or refused to actively oppose, the city and GM's actions.

Lacking support from any powerful interest group, Poletown's inhabitants looked to the courts for protection. A local progressive attorney, Ron Reosti, challenged the city's proposed action, but the state Supreme Court upheld the “quick take” law.

GM promised 6400 jobs at this plant. By Dec. 2007 approximately 1000 jobs remained.

Fairfax Assembly, Kansas City:
GM successfully lobbied the city council of Kansas to close a municipal airport and offer the land to GM. Then the race for additional subsidies began in earnest: GM applied for low-interest bonds; the state established an enterprise zone on the airport site, thereby exempting GM from sales, use, property, and ad valorem taxes; and the city agreed to issue $775 million in economic development revenue bonds for the project.
In later years, Kansas City issued an additional $266 million in revenue bonds for the assembly.

Now this was a good investment:
The original program, begun in 1993, aimed to develop affordable cars that got 80 miles to a gallon of gasoline. Vice President Al Gore, its most vocal backer in the Clinton administration, likened the project, known as the Partnership for a New Generation of Vehicles, to the Apollo space program in its technological complexity. In addition to about $1.5 billion in government subsidies, the Big Three automakers — General Motors, Ford Motor and DaimlerChrysler — together spent about $1 billion a year on related technologies.

The carmakers all developed prototype vehicles that got at least 70 miles a gallon, and the project nurtured advances in aerodynamics and lighter composite materials now used in auto manufacturing.

But none of the Big Three came close to commercial production of an 80-mile-a-gallon car. The average fuel economy of cars and trucks for sale in the United States has, meanwhile, steadily dropped, so that this year's fleet — with its growing proportion of sport utility vehicles — gets the worst gas mileage in 21 years, according to the government.

The list goes on and on.
You have Ypsilanti, Michigan which gave GM 1.3 billion in tax abatements only to have GM close the plant and move it to Texas where it received more tax abatements – though Texas was smart enough to include claw-back provisions for their subsidies.

More recently, GM received a 50% tax abatement on property taxes and a 100% tax abatement on equipment through 2033 from Flint Michigan to build the Chevy Volt.
Ford recently received $151 million in state tax incentives from Michigan for plant upgrades.

There are many more instances if some intrepid journalist wants to take the time adding it all up.


BillW
Comment posted December 17, 2008 @ 4:46 am

It still casts $1500 more to make a car in Detroit, then it does in Alabama, that's the UAW costs for the pentions to works that are not working on those cars. ( That also includes Healthcare )


Tsu Dho Nihm
Comment posted December 17, 2008 @ 7:06 am

Hmm…Comparing tax-breaks at the state/local level to massive (and likely open-ended) guaranteed loans at the federal level?

It's really not a good comparison. Let the states do as they will, and let the people in those states control their governments. Keep the federal government out of this business completely.


joshquasimoto
Comment posted December 17, 2008 @ 8:13 am

I would say that just from the responses you see here on this article, it is easy to conclude that Americans are divided and confused about the facts on this issue. I think cycnicalone makes some good points about tax policy in states which are recruiting the foreign auto makers but he/she also conveniently does not address the issues raised in this article. The article points out that GM has 4 times the amount of retirees versus workers. I hope all of you that are advocating against the UAW realize that you are working against fathers, mothers and grandparents who help build this country by working in one of Americas major business sectors. I hope you understand that if your past employment was talked about with the same cavalier attitude in the future as you talk about these worker from Americas past, that you might take a new look.

This case isn't as simple as letting and industry die because its managers have failed, because if it does die I am afraid that you and the rest of America will feel very real consequences both short-term and long-term. GM, Chevy and Ford, but especially GM make two many domestic cars. All three seem to be behind the curve when it comes to economic cars or luxury vehicles in our current culture as both are filled by the choices many Americans make by buying foreign autos. But it would be ignorant to not notice the actual sales numbers which in general look pretty good for all three companies. The way we buy cars will be different in the future by eliminating many dealerships across America, this will lower cost but those workers have to be employed in another field or the economy will suffer. I am not for a bailout, I am for government investment in public transport, a big three restructuring and new jobs created around the transformation of these two industries moving in different directions.


J.D.Madison
Comment posted December 17, 2008 @ 11:19 am

How convenient that the GOP fails to mention the role their states have played in destroying unionized American manufacturing with tax payer dollars.

Corker’s Tennessee recently lured Volkswagen to build a manufacturing plant in Chattanooga, offering German automakers $577 million, In 2005, the state gave Nissan $197 million in incentives, including $20 million in utility savings.

In 1992, South Carolina snagged a BMW plant for $150 million in giveaways

In Mississippi in 2003, Nissan was lured with $363 million

In Georgia, a still-under-construction Kia plant received breaks estimated to be $415 million

Why isn't this being reported in the media, for all the talk about liberal media bias I have a hard time seeing it, with public enemy #1 Gov Blagojevich, and public enemy #2 Organized Labor plastered on every channel 24/7, the fourth estate has become distraction central for Republican rhetoric, and double speak.

Another point that wasn't mentioned in this article is that “the nonpartisan Tax Foundation have consistently shown that these Senators' states receive far more from the Federal government than they pay back in taxes.”

“the Foundation's most recent study speak for themselves: Mitch McConnell's Kentucky took in $1.45 from the Feds for every dollar it paid in taxes. That's a 45 cent free ride. Bob Corker's Tennessee received at 30-cent Federal giveaway. And Richard Shelby's Alabama extracted a whopping 71-cent subsidy from Northern taxpayers.

What about Michigan? They lost 31 cents for every dollar they paid. In other words, McConnell, Shelby, and Corker have been skimming a percentage off these autoworkers' taxes for years on behalf of their constituents. Now, when the same Michigan taxpayers need help, these Senators are telling them to get lost.

http://www.huffingtonpost.com/rj-eskow/do-south…

Pass on the truth to those with an intelligence quotient larger than their hat size, from what I've read today, I can completely understand how these freshmen foriegn auto companies with no retirees and substantial state tax subsidies can appear to be better structured than the Big 3


J.D.Madison
Comment posted December 17, 2008 @ 12:49 pm

Do you think that these foriegn companies would act in Americas best interest if they had to make a choice between their bottom lines and the American economy if the need ever arose. Sure the Big three may not choose to do so either, but I am certain they could be more easily compeled to do so by the public than the people's republic of China, Japan, or Taiwan. Especially with a 14Bil debt obligation to us. China and many Asian companies subsidize their manufacturing industries in their home countries, not to mention manipulate their currencies, limit our imports and disregard labor rights and safety standards.

And the “states right” argument is archaic and useless given the severity of the economic situation, we are in a financial crisis with global reach, whatever strategy we choose should be aimed at creating the domestic environment whereby we are never again ideologically bound to a rationale that considers it a bad thing for the federal government to consider assisting historically invaluable domestic manufacturing industy giants like the big three, while state senators can claim the moral the highground all while they demonize American Labor Unions and pour millions of tax payer revenue into attracting and strengthening the international competitors of domestic entities who clearly seek to use our politics to drive down wages and gain their share of our domestic marketplace.

“Right to Work” laws, how deceptive and misleading can you be? It's more like “right to fire and rehire someone more desparate for a job” laws. This will be the dividing line in American politics, who wants America, (including the middle class) to be the economic and consumer leaders of the world in the mid to long term future, and those who feel that “supposed free” trade and pro-business anti-labor regulations will lead to the widespread prosperity of our domestic community.

Foriegn industries are here to benefit from domestic consumer spending, not to build a prosperous and thriving American middle class, that is the responsibility of our repective governments, and elected officials, if Tennesee, Alabama, South Carolina, Kentucky, and Georgia want the start a states rights war over govt asisstance for the American economy, fine I just hope they start with refusing any public works stimulus funds for the stimulus plan, since they already recieved 0.30 to 0.71 cents per dollar in federal payouts per dollar of tax revenue they recieve from their constiuents, if they so boldly reject to helping the Big three I feel the American people should demand to be repayed in full since they will only use it to bribe foriegn companies into transplant into their anti-union right to fire and rehire districts.


Blake
Comment posted December 17, 2008 @ 4:09 pm

No offense, but the world no longer needs “unions”. I'm all for the greater good, but just as much problem lies in union greed as with corporate executives and greedy politicians. Sure, it may be fair to pay a high school drop out union worker 6 figures for his work ethic, but as those union workers age, typically their work ethic suffers as well. They get militant in their anger with corporate policies and their productivity goes to nothing as they try to put it to “the man”. And health care – all employees should pay something for their healthcare, but typically, unions force this into their contracts. The bloated contracts are killing america, killing business productivity, and leading to higher costs and eventually death.

If you are a union worker, and you strike, you are in this greedy pile. If there was no unions, there would be fair pay for fair work, and that's it. I got disgusted working in a UAW union facility, where these ignorant greedy workers didn't get their bucks to pay for their inflated trucks and fishing boats, they would just stop work. And there was nothing corporate could do about it.

If any of you union workers would escape the union and join up in a salary environment – take a pay cut and get paid for what you are actuall worth…then I would appologize. But I believe this to be a significant minority.

Unions are the death of America.


typhoidfvr
Comment posted December 19, 2008 @ 11:53 am

All of this is still just a drop in the hat when compared to the BILLIONS given to the Big Three to sustain a business that already has it's plants up and running.


Albert Hale
Comment posted December 22, 2008 @ 1:24 pm

Dear editors,

After reading this report “Foreign Automakers won Billions in Government Subsidies”, I am reminded that each of the senators involved are from the southern states. The old civil war is being waged anew, by hypocritical lawyers who turn their regional advantage into exactly what is wrong with the “New America”. Hooray for me, and F— you. It is this kind of thinking that has cost America its world leadership, caused near financial ruin for many countries around the world, and allowed terrorists to target U.S.allies and proponents in any place they exist.

I suggest tar and feathering these Traitorist anti-nationals knowing how despicable and heinous this remedy is.
They all deserve it. There was a time that no man, whatever his station could take independant action causing suffering and pain to his fellow Americans without being sanctioned or worse.

There exist many examples of famous (and infamous) well-known individuals causing harm to their fellow Americans, wherewith loyalists caused severe and irrepreable harm to be visited on them. It is time again.

They may defend these un-American activities by claiming that their constituents have benefitted, but in fact they have undermined businesses that were paying taxes, and shifting that burden to American taxpayers. That is after all where these righteous Republicans got the incentive dollars, from their taxpaying public.

Just another case of the general public's dislike for the breed. They always claim the public good while offering some business entity the golden goose of funding made available by we the people, and then make the case that they are improving relations, employment, housing, or some other un-related benefit with money pledged to uphold the American way of life while instead sinking “Main Street” just as surely as the German war machine sunk the U.S.S. Maine.


Laundry room design
Comment posted January 21, 2009 @ 4:04 am

Kill the car, kill the country.


religiousstatues
Comment posted February 1, 2009 @ 9:55 am

Its the same on here in Germany. All Big ones like BMW, Mercedes, Audi and so on got such big big problems and are supported with BILLIONS.


onhighbeam
Comment posted February 12, 2009 @ 12:23 am

The government should find a way to retain the car industry, but it seems that what they are doing is to kill it… sad to say but that's what I think it's happening right now…


???
Comment posted February 13, 2009 @ 2:24 am

“It still casts $1500 more to make a car in Detroit”

i think it's before. but now it's very Cheap ,,


???
Comment posted February 21, 2009 @ 10:15 am

in other words, McConnell, Shelby, and Corker have been skimming a percentage off these autoworkers' taxes for years on behalf of their constituents. Now, when the same Michigan taxpayers need help, these Senators are telling them to get lost. bye


nhviet
Comment posted February 21, 2009 @ 3:11 pm

How about in next 50 years when we're not have enough gas to start our cars?


???????
Comment posted February 23, 2009 @ 11:43 am

goodevening

that were paying taxes, and shifting that burden to American taxpayers. That is after all where these righteous Republicans got the incentive dollars , that's all


?????
Comment posted March 6, 2009 @ 4:08 am

If there was no unions, there would be fair pay for fair work, and that's it. I got disgusted working in a UAW union facility.

best regards


???
Comment posted April 11, 2009 @ 4:12 am

If you ask me, the fault lies with the government, no doubt. They should have increase the fuel economy standards to force the car companies down a course of forward looking business plans. That's the role Government needs to have in the free markets. If you just let the companies respond strictly to the demand of the market, you get what we have now. Profit is never in the best interest of the people (unless you still think the “trickle down” philosophy holds water), so that's where Uncle Sam needs to step in. The car companies should have been forced to pay their engineers, and not their lobbyists, as Steven Chu would say. Now, the government need to fix their blunder and keep the big three alive.


film izle
Comment posted April 13, 2009 @ 4:03 pm

Now, the government need to fix their blunder and keep the big three alive


wheelywheel
Comment posted April 13, 2009 @ 11:37 pm

Why not give the workers most of the money and pay them to be retrained? Oh well…


Will
Comment posted April 20, 2009 @ 3:34 am

So… Southern governments used LOCAL tax incentives to attract business to their areas. Because of that we're supposed to be using FEDERAL tax dollars to float the Detroit auto industry?

I'm sorry, but if the city of Detroit or the state of Michigan want to feed the union behemoth that is the Detroit Autoworkers, fine. Let them do it. But that does not mean Detroit gets to take money from other states to keep their car manufacturers solvent.

You can make a good argument for the auto makers' bailout with federal money – this, however, isn't it.


M.A.
Comment posted April 20, 2009 @ 4:48 am

First – let me ask – Would we do the same for the pornography industry?

Let me help you with that answer – no – we didn't when the annual $4.4 billion generated by 30 porn companies was brought to a sudden halt in San Fernando Valley (California) due to an HIV infection. (A case of HIV – not an epidemic)

Perhaps instead of asking the taxpayers around the country to bail out Detroit, the STATE of Michigan should approach their taxpayers first and ask them to bail out their own statesmen? No?

Or, before that, perhaps the Big 3 should go to the their employees and ask them if they'd like to stay employed? If so, most employees are going to need to take paycuts. All of them. From the CEO to the parking lot attendant. No? Why not – there is an average $29/hour pay gap between what the Big 3 pay in total compensation vs Toyota, Honda & Nissan – yet they are holding their own.

Ohhhhh….that would be because the Unions are never going to let that happen. Right. Brilliant. We're not going to take paycuts – no way! We'll just make all the taxpayers in the USA suffer and pay for our inability to run a profitable business until we go out of business anyway.

Go Unions! And good job Congress for even considering bailing them out.


JB
Comment posted April 20, 2009 @ 4:53 am

The blame game sure is cool to listen to. In fact it is funny. The Democrats did this! The Republicans did that! The south is starting another civil war economically! Forget who is at fault! Find the solution and fix the problem! If the solution is in sending some people to jail for improper actions then to jail they go! If the solution is letting illegal immigrants starve well there you are.

America will fall unless we all wake up. Stop whining about politicians and vote them out of office. Cut all political salaries in half and see who stays. Then let the ones who stuck around fix the economy. I am no economist or financial genius but I know lazines when I see it.

America is fat and lazy and complacent now. We never act until it is too late to resolve an issue. America is shockingly lazy when it comes to going to the polls. Too lazy to vote?! That is pitiful!

I say if we are doing the bail out to protect the retirees then we should use federal dollars to pay the monthly costs of the retired workers from the big 3 until they get back on their feet, reorganized etc… and let it go at that.

Let's do something un-American for a change. Identify a problem correctly, label it without worrying if it offends someone, and actually solve the problem/s.


firefox
Comment posted May 5, 2009 @ 8:14 am

It still casts $1500 more to make a car in Detroit, then it does in Alabama, that's the UAW costs for the pentions to works that are not working on those cars. ( That also includes Healthcare )


?????
Comment posted May 5, 2009 @ 8:18 am

Hmm…Comparing tax-breaks at the state/local level to massive (and likely open-ended) guaranteed loans at the federal level?


noroadzone
Comment posted May 7, 2009 @ 12:34 am

Both republicans and democrats need to do something for what happened to the car industry…if the government didn't come out with a plan the car industry's situation will only gets worse…


??? ????
Comment posted May 16, 2009 @ 11:59 am

thank you fry mo


??? ????
Comment posted May 16, 2009 @ 6:59 pm

thank you fry mo


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