This comes via Reason.tv:
Article mentioned in this video is Here
Cue the Music!
Tag: Automotive Bailouts
The begrudgingly obligatory GM goes bankrupt posting
Yes, I know about the bankruptcy of General Motors. No, I will not be commenting on it. As I have a policy, as a blogger not to comment on issues that I personally am involved in and biased towards or against.
Here’s the facts, Via Keith Hennessey:
Process
* GM’s bankruptcy filing was expected to be at 8 AM EDT in NY Southern District in Manhattan. (CNBC)
* Obama and GM CEO Fritz Henderson are scheduled to hold back-to-back press conferences beginning at noon today. (CNBC)
* They are using the same Section 363 process that Chrysler used. The new GM buys the good parts of the old GM. The old parts are liquidated. (White House fact sheet)
* “… would allow a much smaller GM to emerge from court protection in as little as 60 to 90 days.” (CNBC) (This is a guess/spin. How optimistic is it? GM is much harder than Chrysler. –kbh)
* “Al Koch, a managing director at advisory firm AlixPartners, will be appointed chief restructuring officer in charge of liquidating those GM assets” (CNBC)
* “Autos task force will stay in business – shifting to an investment manager role”(CNBC)In “the new GM,” ownership is:
* 60% of equity goes to the U.S. Government. USG also gets $8.8B in debt and preferred stock.
* UAW’s retiree pension/health plan (the “Voluntary Employee Beneficiary Association”) gets 17.5% of equity, plus:
o warrants to buy another 2.5% of equity;
o a $2.5 B note (three installments, ending in 2017); and
o $6.5 B in perpetual preferred stock (9% coupon).
* Approximately 12% of equity goes to the Canadian (and Ontario?) governments. They also get about $1.7 B in debt and preferred stock.
* Bondholders of old GM get about 10% of the equity, for giving up $27.1 B in unsecured debt. This was approved by bondholders representing 54% of unsecured debt. The other 46% are the biggest risk for the bankruptcy filing. (CNBC, WSJ)
* “Bondholders could take up to 25 percent of GM if it recovers to be worth what it was in 2004, before it began round after round of cost-cutting in what proved to be a failed bid to make up for lost sales.” (I need to understand this better.)
* Secured bondholders expect to be paid face value. (WSJ)Governance of the new GM
* UAW’s VEBA can select one independent director, but cannot vote its shares or other governance rights(!) (White House fact sheet)
* “Canadian government will have the right to select one initial director.” (White House fact sheet)
* “The U.S. Treasury will also have the right to appoint the initial directors other than those that will be selected by the VEBA and the Canadian government.” (White House fact sheet)GM gets about $40 B of new cash to help pay its bills during bankruptcy. This is called debtor-in-possession (DIP) financing.
* U.S. Government: $30.1 B in new debtor-in-possession (DIP) financing. (WH fact sheet, CNBC)
* Governments of Canada & Ontario: $9.5 BNewCo / OldCo
* “Today GM is announcing its intention to close 11 facilities and idle another 3 facilities.” (White House fact sheet)
* “[GM] has not provided an update target for job cuts but had been looking to cut 21,000 factory jobs from the 54,000 UAW workers it now employs in the United States.” (CNBC)
* “While the “new GM” is expected to emerge quickly from court protection, the automaker’s shuttered plants, stranded equipment and other spurned assets would be left to liquidation in bankruptcy.” (CNBC)
* Previously announced: “closing more than a dozen factories and shedding the Pontiac, Saturn, Saab and Hummer brands.” (WSJ)
* GM will “shutter 2,600 dealers.” (WSJ)
* “The new GM will also pursue a commitment to build a new small car in an idled UAW factory.” (WH fact sheet)
* GM will shed more than $79B in debt. (WSJ)
* “GM at the last minute also found buyers for some unwanted subsidiaries, including German-based Opel, which is being acquired by a consortium led by Canadian auto-parts supplier Magna International Inc., and the Hummer brand, whose buyer remained undisclosed.”Future
* “The U.S. Treasury does not anticipate providing any additional assistance to GM beyond this [new $30.1 B] commitment.” (White House fact sheet)
* “As a result of this restructuring, GM will lower its breakeven point to a 10 million annual car sales environment. Before the restructuring, GM’s breakeven point was in excess of 16 million annual car sales.” (White House fact sheet)
* “The administration said the goal of the restructuring was to help GM be profitable in a year when the industry sells 10 million vehicles, versus the 16 million it sold in 2007.” (CNBC)
* “GM will continue to honor consumer warranties.” (WH fact sheet)
* GM is being removed from the Dow Jones Industrial Average 30 (“the Dow”), along with Citigroup. They will be replaced by Cisco and Travelers. (CNBC)
As you all can well guess; there is a great deal of sadness and a great deal of anger in this household today. I will give you all a fair warning. ANY sort of stupid or abusive or troll-like comments left in the comment section will result in your comment being deleted and your IP address being blocked from even viewing this blog. You just don’t insult my family. Period.
Others covering this story, their color codes should clue you into their political stances:
The Atlantic Business Channel, The New Republic, Above the Law, Gawker, The Stimulist, protein wisdom, Daniel W. Drezner, Wake up America, Mainstream Texas Conservative, Colorado Independent ,Gateway Pundit, The Huffington Post, Wall Street Journal, DownWithTyranny!, The Big Picture, Kausfiles, Runnin’ Scared, The Caucus, ProPublica, The Moderate Voice, Wall Street Journal, Say Anything, Wonk Room, Hot Air, USA Today, Reason, CFR.org, The BLT, RedState, Ben Smith’s Blog, The Politico, TPMCafe, Democracy in America, The New Republic, Crooks and Liars, DealBook, The Nation, Law Blog, The Hill’s Blog Briefing Room, Boston Globe, Libertarian Republican, The Foundry and Betsy’s Page
The Southern Avenger says “Just Say No” to Government
When South Carolina Gov. Mark Sanford was attacked by Republican state leaders for not accepting federal stimulus dollars, it was worth pointing out the utter uselessness of GOP politicians who refuse to follow through on their conservative rhetoric.
The Southern Avenger on “Lindsey Graham Republicans”
When Lindsey Graham denounced Ron Paul-style libertarianism and advocated for George W. Bush-style neoconservatism during a speech at the South Carolina Republican Convention, it was worth pointing out that Graham’s suggested GOP path is the road to nowhere.
The Southern Avenger says “Partisans Make Us Less Safe”
How support for both “financial security” and “national security” reveal partisan hypocrisy and make us less safe.
The Southern Avenger on “The Mexican Flu”
How the news coverage of the swine flu isn’t so much indicative of any serious crisis, but the mainstream media’s corporate and government, PC sensibilities.
Local Auto News: Chrysler looking at Bankruptcy
A pretty sad thing to wake up today. However, I am sorry to say this, but I knew it was coming. Chrysler never was able to get their act together; unlike G.M. and get a resolution together.
The Report comes via the Washington Post, I won’t quote the whole thing and I kindly ask that you go over and read the whole thing. But rather, I will give some my impressions from the interesting stuff.
My impressions:
The Obama administration last night planned to send Chrysler into bankruptcy, replace chief executive Robert L. Nardelli and pump billions of dollars more into the effort, all in hopes the company can emerge from court proceedings as a reenergized competitor in the global economy.
Government officials clung to 11th-hour hopes last night that bankruptcy could be averted, but talks broke down with Chrysler’s creditors. A bankruptcy filing could happen as soon as today.
The U.S. government’s attempt to save the automaker amounts to another extraordinary intervention in the economy and a landmark event in the history of the American auto industry.
Under the administration’s detailed court strategy, ownership of Chrysler would be dramatically reorganized, the leadership of Italian automaker Fiat would take over company management and the U.S. and Canadian governments would contribute more than $10 billion in additional funding.
Company and government officials had feared that a bankruptcy would stain the brand, shake customer confidence and erode sales, but the administration said it would seek to use the process to create a new Chrysler company. Its ownership would be divided, with the company’s union retiree health fund receiving a 55 percent stake, Fiat would claim as much as a 35 percent share and the United States would take 8 percent. The Canadian government would receive two percent.
Basically this is what General Motors did voluntarily. Minus the Fiat equation, of course. It is a tough break that the creditors, bond holders, and company management could not come together to an agreement. The main and good thing is, that the automaker, itself, will be saved, and that American jobs will be saved.
Now comes the part that will make people like Sean Hannity, Rush Limbaugh, Michelle Malkin, and the rest of the far right wing people howl at the moon:
The automaker’s current majority owner, the private-equity firm Cerberus Capital Management, would have its holdings wiped out.
Now, to be fair; I will report the truth about this holdings company. This company, from what I have read and have been told; is notorious for buying up struggling companies, like Chrysler and shutting them down and selling off the assets to make money. They have done this in past, from what I told. So, while I hate to see anyone lose their money. I actually am glad to see Chrysler being taken away from this company.
Let me also say this. As an Conservative, who believes in “America First”, and believes that business sometimes have to fail; I am not exactly jumping for joy, when it comes to fact that this auto company is having taxpayer dollars being pumped into it. Nor am I happy at the fact, that a US automaker is having a foreign auto company’s management taking over its operations. However, I believe we must be realistic about such matters. We are not living in the 1950’s any longer, we are in a economic recession of monumental proportions, and if we do not drastic measures quickly, we could see a total collapse of the American auto industry. I also know that there is a undeniable truth that “as Detroit goes, so goes America.” Pat Buchanan and I, have been saying this all along; if allow the big three or in this case, the big two to disappear our Nation’s economy would go into free fall. I shudder in absolute horror at the thought of the far reaching implications of such an event.
I will say, as a devout Paleo-Conservative; If we would have rejected the globalism of the Rockefeller-type conservative types and would have imposed strict trade restrictions on Japanese and other such foreign automotive products, these auto companies would not be in the position that they are today. It is because of the Rockefeller-type, Madison Avenue, Neo-Conservatives, whose mantra is “screw the American middle class”, is the reason we are in this position today. Further more, it is the reason that the world is also partaking in our recession as well. Perhaps President Obama will see the state of our globalist economy and will rethink his position on NAFTA and TAFTA and the rest of those toxic free trade agreements that are in place; and impose strict tariffs on imports that are bleeding our economy dry.
Realistically however, I highly doubt that President Obama will do any of that, because he is trying to run as a centrist, or as I like to call it; he is sucking up to the Neo-Conservative right, as they are his biggest supporters, strangely, after trying so very hard to defeat him in the election. Of course, we Paleo-Conservatives know why this is; because the only difference between a Neo-Conservative and a Democrat is the letter next to the name.
The Worry in my Father’s Eyes (A Personal GM Posting)
As many of you know, I am the son of a retired General Motors worker. Ironically, I am also a Conservative. No, I am not a Republican; or even a formal Libertarian. I am someone that believes that the less Governmental interference in my life, the better. However, there is a place, where my politics ends and a genuine concern for my family begins.
I see that General Motors is going to be taking more money from the Government, and is desperately trying to salvage what is left of that company:
Quote:
General Motors Corp. will get up to $5 billion and Chrysler LLC $500 million in short-term aid, according to a 250-page government report obtained Monday by The Detroit News.
The Detroit News reported Friday that GM would get about $5 billion and Chrysler $500 million, citing an Obama administration official, which prompted a denial from the White House.
The short-term aid figures are disclosed in the report from the Treasury Department’s Inspector General on the $700 billion Troubled Asset Relief Program.
The report was obtained from a congressional source late Monday.
Meanwhile General Motors is is doing its damnedest to rid itself of waste:
General Motors Corp. has started notifying about 1,600 white-collar workers — most of whom work in southeast Michigan — that they will lose their jobs this week as the cash-strapped automaker cuts costs that could help the automaker qualify for up to $16.6 billion in additional federal aid.
The announcement was made by GM North American President Troy Clarke in an e-mail sent to employees today, spokesperson Tom Wilkinson said.
“This is part of really restructuring the company to a smaller, leaner company, one that can, as the (Obama) administration requested, be profitable on an ongoing basis,” Wilkinson said.
While this might be a good thing, there are those out there that believe that this is too little too late:
It’s ironic enough that Italy’s Fiat Auto could end up being the savior for Chrysler. After all, former Chrysler President Bob Lutz once likened Fiat to a dead bride when his old boss, Lee Iacocca, wanted the company to join up with the Italian carmaker. Now, Lutz is at General Motors until he retires in December, and Fiat may help his current employer.
Yes, the Italian carmaker is reportedly in talks with GM about forming a partnership with its European and South American businesses, says Automotive News. How ironic is that? Well, in 2000, GM bought 20% of Fiat Auto for $2.4 billion. Back then, GM was healthy and Fiat was in serious financial trouble. The Italian company was wracked by quality issues. It was so bad that GM actually paid another $2 billion a few years later just to avoid a put option that would have made GM the sole owner of Fiat. GM’s board didn’t want that kind of headache.
But now, after Fiat CEO Sergio Marchionne has fixed the company, he could help save Chrysler in the U.S. and GM in Europe. GM lost $1.5 billion in the Olde World last year, with its Opel and Vauxhaul brands suffering mightily with too many factories. GM is actually doing very well in Latin America, where the auto giant earned $1.3 billion last year. Fiat is pretty strong there, too, so they could make a powerful pair down there. The only catch is that Fiat doesn’t have any cash either. But the alliances will help be getting each company jointly-engineered vehicles and sharing parts.
The bottom line: Fiat is not a great carmaker by any stretch. But Chrysler and GM are in so much trouble that anyone could help at this point. Even Fiat.
Which brings me to my point; have any of you really looked at your Father? I have. I see worry in his eyes. I see worry in both my parents eyes. The questions my parents are facing, as they enter into their golden years are unfathomable, for someone my age. Will my parents lose everything that my father worked hard to obtain? We are talking 31 years worth of blood, sweat, and tears. My Father earned every damned last penny. I dare some idiot beltway type to say otherwise.
I have been a critic of the Obama Administration for much, as of late. However, I will give him credit for one thing. The President is looking out my Father. I just hope he does not throw my Father under the bus, as he has many others in his short time in the White House.
Some of you might look at this posting and call me some sort of a hypocrite. That is your right as an American.
However, if you could only see my Father’s eyes; you might just might be able to understand.
Is the Obama Administration letting G.M.’s New C.E.O. do it’s dirty work for them?
Full Disclosure: My Father is a Retired General Motors Worker and U.A.W. Member.
——-
It sure as heck looks that way to me here.
The reason I ask this question is because a new report from CNBC that the new C.E.O. of GM is essentially saying that bankruptcy is the only option:
General Motors’s new chief executive told CNBC that filing for Bankruptcy may be the best option for the struggling automaker.
In a taped interview to be aired tonight on NBC Nightly News, Fritz Henderson said that because of greater demands from the Obama administration to restructure, GM is considering the bankruptcy option. The auto giant previously had ruled out such a move, saying it would discourage people from buying GM cars.
Henderson’s comments came after President Obama bluntly rejected turnaround plans by GM and Chrysler and demanded that both companies make fresh concessions in order to get more federal aid.
Henderson, who was GM’s president and chief operating officer, was named the new CEO after the government forced the resignation of CEO Rick Wagoner on Sunday. GM’s board is also being restructured.
Henderson told reporters that the company would still prefer to restructure outside of court, but the level of support Washington is offering would help the company quickly restructure through bankruptcy.
Henderson says GM needs to work faster and go deeper to get more concessions from bondholders and the United Auto Workers union. President Obama has demanded that GM come up with a better restructuring plan in 60 days in order to qualify for more government aid.
I find it very interesting that President Obama, instead of doing the dirty deed himself, ousted the CEO of G.M. and basically has let the new G.M. head honcho be his fall guy for basically screwing the bond holders and also the unions. This way, Barry comes off clean. It is a strategy that is quite slick, quite risky; but none the less slick.
The Wall Street Journal has more:
Inside a windowless, ornate room Thursday just across from the Oval Office, President Barack Obama and a group of senior economic advisers began the job of remaking the American automobile industry.
The first order of business: Oust General Motors Corp. Chief Executive Rick Wagoner.
It “wasn’t the hardest decision,” said one government official.
Steven Rattner, a former investment banker who is heading the administration’s auto restructuring; chief economic adviser Lawrence Summers; and Treasury Secretary Timothy Geithner were among those gathered around the polished wood table of the Roosevelt Room in the White House’s West Wing. They were there to decide under what conditions the government would continue to prop up once-powerful Detroit car companies GM and Chrysler LLC.
In the post-World War II boom, they were at the pinnacle of a quintessentially American industry. At Thursday’s meeting, once the Obama administration concluded the pair were running out of money, their effective dismantling began.
Beyond seeking Mr. Wagoner’s resignation, the officials also gave failing grades to GM and Chrysler for the restructuring plans they submitted to the government Feb. 17. They also set a deadline — one month for Chrysler, two months for GM — after which the government might force a bankruptcy restructuring of both companies and break up two of America’s business icons.
Many of GM’s problems didn’t start during Mr. Wagoner’s term, and most predate the economic downturn that sent car sales slumping, such as union contracts and the costs of paying for retiree health care. GM made a bad situation worse with huge bets on trucks and SUVs that piled up on dealer lots amid soaring gas prices last year.
While I will be the first to tell you, that General Motors has had its own share of issues. What Barack Obama did to G.M. and by proxy to the Union members and Employees of the company; was just flat out cowardly. Instead of forcing General Motors into bankruptcy himself. Obama is allowing the new head honcho of the company and his Auto Czar; do it for him. This way Obama does not burn through his political capital as quickly and more or less comes out looking like the hero. Of course, President TelePrompter will say that he inherited this mess, and by rights he did. But to pass off the basic executing of a company and it’s people to someone else, is quite the cowardly move in my book.
Hey Barry, If you ever happen to read this; Grow some freaking Gonads,will ya? I mean, come on. If you going to screw the American worker; why not do it yourself? Instead of letting your damned patsies do it for you. Just a thought.
An Interesting Movie
I post this because I believe that it is interesting. Alex Jones has always struck me as a kook. Someone amongst the “Tin Foil Hat” crowd. However, it is something interesting to watch.
Enjoy…
What do you think? Do you think that there is any truth to this?
Technorati Tags: 9/11 ,Afghanistan ,America ,Ann Coulter ,Announcements ,Automotive Bailouts ,Autos ,Bailouts ,Banking Crisis ,Banks ,Barack Obama ,Bias ,Biden ,Bill Clinton ,Blagojevich ,Blagojevich Scandal ,Blogs ,Bob Barr ,Borders ,Bush ,Bush Administration ,Business ,CNN ,Canada ,Capitalism ,Celebrity ,Cheney ,Chris Matthews ,Christ ,Christanity ,Chrysler ,Chuck Baldwin ,Church ,Comedy ,Commodities ,Communist ,Congress ,Conservatism ,Conservative ,Conservatives ,Constitution ,Constitutionalists ,Corruption ,Democrat ,Democrats ,Detroit ,Economy ,Ed Morrissey ,Editorial ,Edwards ,Election ’08 ,Election 2008 ,Family ,Federal Reserve Bank ,First Admendment ,Fitna ,Ford ,Fox News ,Freedom of Speech ,Fun ,Fundraising ,Funny ,G.M. ,Gaza ,Global Warming ,Globalism ,Gold Prices ,Government ,Guantanamo Bay ,Guns ,Hillary ,Hillary Clinton ,History ,Holiday ,Holland ,Housing Crisis ,Huckabee ,Humor ,Identity Politics ,Idiots ,In Memory ,Internet ,Iran ,Iraq ,Islam ,Israel ,Jerusalem ,Jewish ,Jews ,Jobs ,Joe Biden ,Joe Wurzelbacher ,John Edwards ,John Gibson ,John Kerry ,John McCain ,Judaism ,Keith Olbermann ,Kwame Kilpatrick ,Labor ,Laura Ingraham ,Law ,Lebanon ,Lew Rockwell ,Liberal ,Liberals ,Libertarian ,Libertarian Party ,Local ,MSNBC ,Martin Luther King Jr. ,McCain ,Media ,Memorial Day ,Men ,Michael Savage ,Michelle Malkin ,Michigan ,Middle East ,Mike Huckabee ,Military ,Misc ,Mitt Romney ,Money ,MoonBat ,Moonbats ,Muslim ,NAFTA ,NBC ,National Review ,Nationalism ,Neo-Conservatives ,Netroots ,New York ,New York Post ,New York Times ,News ,North Korea ,Nukes ,Obama ,Obama Administration ,Oil Companies ,Oil Prices ,Olympics ,Open Thread ,Open Trackback ,Opinion ,Pakistan ,Paleo-Conservatives ,Palestine ,Platinum Prices ,Police State ,Political Cartoons ,Political Correctness ,Politically Incorrect ,Politics ,Polls ,Presidential Debates ,Privacy ,Progressive Talk Radio ,RIP ,Race Baiting ,Rachel Maddow ,Radio ,Ralph Nader ,Rants ,Religion ,Republican ,Republican Party ,Republicans ,Rest In Peace ,Rick Warren ,Romney ,Ron Paul ,Ronald Reagan ,Rudy Giuliani ,Rush Limbaugh ,Russia ,Russia News ,Sarah Palin ,Schools ,Second Amendment ,Short takes ,Silver Prices ,Site News ,Snow ,Social Security ,Socialism ,Sons ,Space ,Stock Market ,Stocks ,Stupidity ,Sub-Prime Loans ,Support Our Troops ,Sy Hesh ,Syria ,Taliban ,Talk Radio ,Taxes ,Tazers ,Technology ,Terrorism ,Thanksgiving ,Time Magazine ,Todd Harris ,U.A.W. ,Uncategorized ,Unions ,Video ,WMD’s ,WTF? ,Wall Street ,Wall Street Crisis ,War ,War on Terrorism ,Washington DC ,Washington Post ,Washington Times ,Waste ,Wealth ,Weather ,Web 2.0 ,White House ,Whites ,Women ,World News ,World Politics ,Youtube ,assholes ,blacks ,blogging ,chicago ,communism ,constitution party ,cool stuff ,crime ,deportation ,economics ,fascism ,foreign oil ,healthcare ,illegal immigration ,immigration ,justice ,life ,lolcats ,mexico ,nra ,oil ,open borders ,racism ,relationships ,senate ,twitter ,vote ,voting ,writing
A New Parody “Barry’s Farm”
Here’s the Original Song:
Update: It seems that some Fascist Socialist Liberal twit keeps going around getting my video yanked. No biggie, if they yank it. I will find it elsewhere and put it up. This is America and not fascist Germany and I have the RIGHT to express my opinions about the President and his fascist polices. You liberals don’t like it? TOUGH SHIT! 😡
History about the song and concert
New Lyrics:
Barry’s Farm
(Sung to the tune of Maggie’s Farm by Bob Dylan)
Written by Paleo Pat
I ain’t gonna work on Barry’s farm no more.
I ain’t gonna work on Barry’s farm no more.
Well, I wake up in the morning,
Fold my hands and pray that I might keep my gain.
I got a bill full of Taxes
That are drivin’ me insane.
It’s a shame the way he makes me tip the whore.
Naw, I ain’t gonna work on Barry’s farm no more.
I ain’t gonna work under Barry’s Law’s no more.
I ain’t gonna work under Barry’s Law’s no more.
Well, he hands you a Dollar,
Taxes you a dime,
Looks at you with a grin
While robbin’ you fuckin’ Blind,
Then he taxes you every time you open the door.
I ain’t gonna work under Barry’s Laws no more.
I ain’t gonna be a slave for Barry’s Government no more.
No, I ain’t be a Slave for Barry’s Government no more.
Well, he puts a Tax Bill
in your face just for kicks.
His White House
It is made out of Bricks.
The Secret Service stands around his door.
Ah, I ain’t gonna be a slave for Barry’s Government no more.
I ain’t gonna work for Barry’s Bitch no more.
No, I ain’t gonna work for Barry’s Bitch no more.
Well, she talks to all the people
About Equality and Race and Law.
All the while the workin’ people
Are payin’ for other peoples bad calls
She’s a lying thief, but she says her honesty stands tall.
Naw, I ain’t gonna work for Barry’s Bitch no more.
I ain’t gonna work on Barry’s farm no more.
I ain’t gonna work on Barry’s farm no more.
Well, I try my best
To do the best I can,
But everybody wants you
To pay thier bills for them.
They eat steak while you slave and I just get bored.
I ain’t gonna work on Barry’s farm no more.
Breaking Local News – G.M. to offer buyout packages to all union employees.
This is interesting…:
General Motors Corp. will offer buyouts to all of its hourly employees, a spokesman confirmed Tuesday, as the troubled automaker continues to slash costs.
GM spokesman Tony Sapienza said the buyouts will mainly target GM’s 22,000 retirement-eligible hourly employees, though any union employee can take the offer.
News of the buyouts first broke on Monday. A union official told The Associated Press then that GM would offer $20,000 in cash and a $25,000 car voucher for workers who retire early and those who simply leave the company. The official spoke on condition of anonymity because workers were not yet notified of the packages.
via GM To Offer Buyouts To All Hourly Employees — WDIV Detroit.
Just another sign of the times. For the record, G.M. has done this in the past, when times were bad. Hopefully some of the guys that have been with the company and are about ready to retire will take this buy out. Hopefully, this will help the problem and G.M. will become viable.
Toyota is feeling the pinch too.
So much for that stupid Neo-Con line saying that the slump in auto sales is the automakers fault.
Via the New York Times:
TOKYO — Toyota Motor will idle its plants in Japan for 11 days in February and March to reduce output in the face of steeply declining global vehicle sales, the company said Tuesday.
The Japanese auto giant said the suspension would affect production at all 12 of its directly operated domestic plants, which include four vehicle assembly plants and also factories that make transmissions, engines and other parts. The closings are in addition to a three-day shutdown this month at these plants that Toyota had already announced.
The move is unusual for a company that just a few months ago seemed unable to keep up with voracious global demand for its fuel-efficient vehicles. But even strong players like Toyota have failed to escape the drastic slowdown in the global auto industry.
The company said it would idle the plants to reduce stocks of unsold vehicles amid a relentless slide in sales, particularly in the United States, its biggest market. Last month, Toyota’s sales there dropped 37 percent, a larger decline than at its struggling American rivals General Motors and Ford.
Plunging sales and a stronger Japanese yen, which reduces the yen value of overseas profits, forced Toyota to forecast last month its first annual loss in 70 years at its vehicle-making operations.
Toyota did not say how many vehicles would be affected by the suspension announced Tuesday. The company said its four domestic assembly plants produced 1.5 million vehicles in 2007, the most recent year for which the company has figures. Toyota-brand cars are also made by other companies in the Toyota group.
The company had already announced that it would shut down truck production at two United States plants for three months
Its American rivals — General Motors, Ford Motor and Chrysler — have also idled plants across North America in response to the slowdown.
For once, I am in agreement with a Liberal, and yes, it is the same knuckle-headed liberal that insulted Conservatives. Hey, I am one that praises when it’s due and bitches when it’s due too; At least I’m fair. 😉 😀 😛
Matthew Yglesias Weighs in:
This is the conceptual problem with efforts to “save” the car industry through bailouts or union busting or whatever you like. One assumes demand for cars will get higher than it is right now, but the industry has a whole just has more capacity to build cars than there is demand for new cars. Which is fine. When you look across the developed world and try to take stock of the medium- and long-run problems facing the OECD nations there’s just no way you’re going to reach the conclusion that an automobile shortage is a big concern. But obviously it’s not fine for the companies that make cars. There’s going to be a need for some shrinkage.
Yeah, I know, most likely some of the Conservatives who are basically scraping my blog for content are going to try and deride me as a fake conservative, because I stick up for the middle class and because I happen to be the son of retired General Motors Worker and U.A.W. member. Well, I got two words; screw you and the rest of the asshole Madison Ave. Conservatives. 😡
Anyhow, I happen to agree with Matthew here, I live here in the Detroit Area. If the auto industry dies, so does this area. That will cause my parents to suffer, they need the health insurance, as they are both diabetic and the amount of medications that they take is staggering. Anyhow, this article above disproves and basically strikes down the “Meme” that was going around in the Conservative Blogosphere that the issues with the auto industry was the fault of the automakers. Which I totally dismissed as abject bullshit of the highest order. It was the fault of President Clinton for putting pressure on the loan companies to give those toxic subprime loans to those who were considered high risk. That is what started this whole thing. Of course, equal blame can be given to the Republican Congress of 2003 for not changing the laws, after all, they were warned by the Bush White House to do something; and they did nothing at all.
Best thing they could do, was have a hearing, of which the CEO of Freddie Mac pulled the race card, and congress backed off. So, all the blaming of the Auto Companies was nothing more than a feeble attempt by the Republicans at scapegoating the wrong damned people.
Here’s hoping that Japan’s auto industry totally collapses and people, both American and otherwise, have to buy American products, for a change!
Funny Video: Sponsor an Executive
This was sent to me by the smartest Democrat I know………………My Mom. 😀
President Bush authorizes $17.5 Billion Dollars in low interest loans to Automakers
Better late than ever, I suppose. To listen to some Conservatives talk, the loans are open ended and there’s no accountability. Which is, of course, wrong. 
From The Politico:
President George W. Bush stepped in Friday to keep America’s auto industry afloat, announcing a $17.4 billion bailout for GM and Chrysler, with the terms of the loans requiring that the firms radically restructure and show they can become profitable soon.
"If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy," Bush said at the White House, in remarks carried live by the national broadcast networks. "In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action. The question is how we can best give it a chance to succeed."
Bush said that "bankruptcy now would lead to a disorderly liquidation of American auto companies."
"My economic advisers believe that such a collapse would deal an unacceptably painful blow to hardworking Americans far beyond the auto industry. It would worsen a weak job market and exacerbate the financial crisis," he said. "It could send our suffering economy into a deeper and longer recession."
The money will come from the Wall Street bailout passed by Congress, a reversal for the White House. President-elect Barack Obama and Democrats had long advocated that course, and Bush had resisted it.
Of the total, $13.4 billion will be paid out in December and January, administration officials told reporters in a briefing. The last $4 billion is contingent on release of the second installment of the Wall Street bailout funds by Congress.
As you can see here, there is accountability, there are conditions on the loans, they are not open ended, and if the auto companies do not get their acts together, the loans will be recalled.
Of course, that is not good enough for some Conservatives like Michelle Malkin, who says that someone should sue the Government over the loans to the Auto industry. Yeah, Michelle, like that will really work. 
The Party that you are a cheerleader for, is already in the minority, has been driven to the wilderness; because of that beady-eyed bastard in the White House, why not just drive a damned stake through the heart of the party? I think Michelle needs to seriously look into going to the hospital, because I believe that "Sickness" that she has, is going to her brain. 
Yeah, I know, defend Malkin one day and whack her on the ass with a wet towel the next, it’s all about Equal Opportunity around this Blog. 
Anyhow, some also believe that this will soften Bush’s image a bit, The Moderate Voice’s Joe Gandelman Notes:
It will help add a positive note to the legacy of Bush who, at best, will be considered a highly flawed President and, at worst, rank as one of the worst in American history. The Republicans in the Senate, acting on ideology, regional politics and anti-union sentiment, had scuttled the bailout — giving the GOP an image once again of a party stuck on ideology.
I agree and I disagree; it might soften his image a bit amongst Independents and some moderate Democrats who did not like that guy, but amongst the hard left, I suspect that President Bush will be the most hated President ever.
Personally, I think Bush did what he felt was right, he put his Party politics aside for a change and did what was right, I commend him for it. I just hope that the auto industry uses this money for the proper purposes and gets their damned act together. Our Government has done the right and proper things, now it is time for the Auto Industry to do theirs. Many people are pessimistic about this; I, on the other hand, try to remain positive about this and hope like bloody hell that G.M. does get their act together. For the sake of the retirees, for the sake of all those who have families that work for those companies, for the sake of all the employees of the local and not so local suppliers and their families.
I got a better idea
How about let’s just dump Richard Spencer?
Preferably in a lake somewhere with a boulder chained to his damn foot. 😡
Fucking asshole…
Local News: It is not just the big three feeling the pinch
It seems that the big three are not the only automakers feeling the pinch.
Via Detroit News:
Honda Motor Co. is reducing production in North America by a further 119,000 vehicles in its fiscal year ending March 31, the company said Friday. Honda previously had announced output cuts of 56,000 vehicles for the year.
The Japanese automaker now expects its full-year output in the region to dip to 1.29 million cars and light trucks, from its original target of 1.47 million.
Production is being cut across the board, with output reductions planned for small as well as larger vehicles, company spokesman Ed Miller said. “Showroom traffic is down for everyone,” he said. “The dealers just aren’t in a position to order the number of cars they had been ordering.”
Production cuts are scheduled for Honda’s plants in Alabama, Ohio, Indiana and Canada, but the company does not plan to lay off any workers.
So much for the idea that the big three are causing their own problems. Looks like the Japanese are feeling the pinch too. I would be willing to bet that you will not be seeing this blogged on any other Conservative Blogs. Because that would mess up the message that it is the Unions fault that G.M. and Chrysler are in the shape that they are in.
Of course they are not going to lay anyone off, the Japanese have all that extra money laying around, they can pay those people to work. They have made it by stealing market share away from the America Workers.
It truly is a pity, those bastards bombed Pearl Harbor in 1941. We defeated them, but they really won the long war, by stealing our jobs and market share, aided and abetted by Globalist Neo-Conservatives, who’s only concern was to make a quick buck.
The Automotive Bailouts: The Other Side of the Story
I have been sitting here, trying to keep out of this. But I have sat and looked at the Republican and Neo–Conservative Spin on this Story and I’m sick of it. 😡
So, I am giving you, the other side of the story, from the horses mouth; without commentary from me.
I did not ask that you agree, I simply ask that you listen and hear this man out. Now I am almost sure, that the Blogs, that I have linked to, will remove my trackback, like the Neo-Con Fascists that they are. I mean, it is all about controlling the message with those guys. 🙄
Here we go:
Part 1:
Part 2:
Media Q & A:
Media Q & A Part 2:
Media Q & A Part 3:
There you have it. The other side of the story. You decide.
(Source UAW.ORG)
Yes, I know about it….
Yes. I know about this.
No, I am not happy about it.
I just need some time to think. Because, quite frankly, I have mixed feelings.
I’d rather not Blog about it. I get too angry and too emotional.
So, I’ll just not discuss it.
Stupidity from the Moderation Que
Well, it seems that my Boycott Alabama posting has drawn out some of the morons, who are for letting the big three die.
Some asshat left this in the comments section:
Author : g.w. (IP: 72.242.143.206 , 72.242.143.206)
E-mail : braswell@hopper.net
URL : http://n/a
Whois : http://ws.arin.net/cgi-bin/whois.pl?queryinput=72.242.143.206
Comment:
i don’t think the goverment should be paying the xtravagant salary’s with our tax dollrs. g.w.
and when his comments did not appear, despite it being clearly written, that he did not have to write another comment. Writes another comment:
Author : g.w. (IP: 72.242.143.206 , 72.242.143.206)
E-mail : braswell@hopper.net
URL : http://n/a
Whois : http://ws.arin.net/cgi-bin/whois.pl?queryinput=72.242.143.206
Comment:
i am a retired union worker and i do not think we should be paying the large salary’s of G.M. they work like goverment workers. g.w
With smarts like that, I highly doubt G.M. would even hire an idiot like you. Not mention that idiot cannot spell worth two shits.
Anyhow….:
Let’s Boycott Alabama
It seems that there is a grassroots effort to get a boycott Alabama, in response to the Alabama Senator Richard Shelby’s attempted stonewalling of the bridge loans to the Big Three. Well, it’s big two now, Ford will not be needing the help.
Anyhow, here is a e-mail written by my Mother, who is a spouse of a retired General Motors worker.
Senator Shelby,
I doubt that you read the emails sent to your office but perhaps it will be read by someone who will show you the many emails you are sure to receive, and will point out to you just how wrong you are. There are a lot of derogatory comments that could be made but I prefer to try to point out a few facts that you evidently have not wanted to know. My husband and my father are both General Motors retirees and I know firsthand from where I speak.
Perhaps you think the auto workers are wealthy, making that mysterious $75 an hour that has been bandied about in the media. Unfortunately that is very far from the truth. They have never made that much, even including benefits, and most of them live from paycheck to paycheck trying to make ends meet like most middle class people. If the auto companies go bankrupt as you desire, not only will the auto workers lose their jobs, but also jobs directly and indirectly connected, such as suppliers, stores and restaurants located near the plants and of course it will trickle down to the cities who will lose the tax revenues these plants produce. We are not only talking about Detroit and Michigan but every state that has a plant or plants belonging to the Big 3.
It’s odd to me that you think that two companies that have been in business for over 100 years and one that is over 83 years old do not know what they are doing. If this is true how do you explain the fact that they sell over 50% of the cars purchased in the world and have won many, many multiple awards over the years for their cars? Do you perhaps think that people are just too stupid or uneducated to realize they are buying an inferior product? And the award givers are too dumb to realize they are giving an award to a poorly built, not very innovative dinosaur? Maybe you need to voice that opinion in your next media interview. I’m sure people would be interested to hear it.
You need to come out of your office and meet with the GM, Ford and Chrysler workers themselves. Could you really look them in the face, knowing they have families to support and bills to pay and tell them you think they should join the ranks of the unemployed? Do you think it is their fault that the economy has taken such a downturn because of mismanagement on Wall Street, the banks and yes, the government?
The auto companies and the union are trying their best to jump through all the hoops the Congress is throwing at them, as ridiculous as some of them are. To let them go under will cause a depression like this nation has not seen in many years. I hope you think long and hard about that.
By the way, I fully support the boycott of your state.
Y’all see where I get the writing skills from? I was told that I could post that, as long as I did not sign her name.
Anyhow, if you’d like to join the grassroots effort boycott Alabama. Please go to the Official Boycott Alabama Page.
Well, they did call them “High Risk” Loans…
Seems that the people that defaulted on their mortgages, have defaulted again, even after all this aid that has been tossed around. So reports Reuters:
Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
“The results, I confess, were somewhat surprising, and not in a good way,” said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.
“Put simply, it shows that over half of mortgage modifications seemed not to be working after six months,” he said.
Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.
However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.
Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.
“We don’t know the answers yet, but these are the types of questions that we have begun asking our servicers in detail,” Dugan said.
Sheila Bair, chairman of the Federal Deposit Insurance Corp, who has been pushing for fast and systematic loan modifications, said regulators need to examine re-default data more closely.
“I think it’s very important to look at this data carefully and know what it says and what it doesn’t say,” Bair said.
Dugan said the third-quarter report will show many of the same disturbing trends as other recent mortgage reports, as credit quality continued to decline across the board and delinquencies rose for subprime, alt-A and prime mortgages.
He said the report will also show that the greatest delinquencies were in prime mortgages.
I can tell you exactly what the answer is. You do not hand out mortgages to people that you know damned well that they cannot pay for them. That is the answer! This is why the Country, The Big Three and Wall Street are in the mess that they are in now, in the first place. Because fucking Bill Clinton and his team of morons decided to FORCE lending companies to gives loans to HIGH RISK persons, and they’re called that for a reason, they’re known not to pay their bills!
High Risk is called High Risk for a reason! Duh! Man, I could have told them that and I am a High School Drop out with A.D.H.D. 🙄
“Clue needed on Asle 5, Clue needed on Asle 5 Please.”
(Thanks Q & O)
Done with Twitter….
Well, Sort of…
Here’s is the truth about why the comment moderation is enabled and Why I’ve basically hung it up with Twitter.
I’ve made it quite clear on this Blog that I am in favor of the loans to the big three in Detroit. I’ve Blogged many times as to why. I realize that it is a very complex issue and that no matter what happens, someone isn’t going to like what happens.
Anyhow, this discussion came up on twitter. I happened to be following a great deal of Conservatives, mainly Neo-Conservatives and Republicans. I admit it, I get upset when I hear people trashing my area, and also the big three, because my Dad worked there. I take it personally, it’s just not something I can control. It’s my family and I’m close to my family.
Anyhow, I lost my “cool” as it were, and I said some things that really pissed off a good number of people. I ended up hosing the twitter account, I’m done with the twitter stuff.
Oh, there’s an account there. I created a new one. Well, it was an older one, that I never used. So, went to that one. Set up twitterfeed to auto post my Blog entries there. But I’m not using it anymore.
Anyhow, I offer no apologies to the assholes who insulted my Father, yes, I equate my Father with G.M. Sorry, it’s the way I roll. To those who got caught in the crossfire, if I snapped at you an anger. I apologize, but this one issue, I take personally.
Alfonzo on The “Declaration of Dependence”
An Excellent Video:
Now, towards of the end of this. He gets off into the weeds about the Unions. I’ll give him a pass on it. Because some of the stuff he says, I kind agree with. But he went overboard with the “They should gotten out from under them years ago…” I disgree with that crap. But the rest of the video is right on point.
Of course, if I was a real butt hole, I could say if it weren’t for the Democrats, his black ass would not have half the freedom that he has now. But to counter that, If it were not for Abe Lincoln, he would be still in chains. So, it evens out. 😀
Still I wish there were more black people, like Zo here who believed this way. But unfortunately most of them got sucked into that stupid socialist identity politics crap. Thanks to tools like Al Sharpton and Jesse Jackson.
Good show Zo, as always man. 😀