Nov 21, 2008 -
News From AutoObserver.com
Hi,
Here are some highlights from Edmunds’ AutoObserver.com this week. As always, there is more available directly on
www.autoobserver.com:
Tracking the Bailout: When the Music Stops, Who's Going Bankrupt?
The CEOs of Ford Motor Co., General Motors Corp. and Chrysler LLC loaded up on their much-maligned corporate jets and winged out of Washington, DC, this week with no bailout money - but the assurance of a shaky holiday season. After Democratic deal-makers conceded this week there would not be sufficient bipartisan support to approve a bill to "repurpose" the existing and already approved $25-billion Department of Energy loan (originally intended to promote the development of fuel-efficient technology and retool factories), the initiative was shelved until a possible vote on Dec. 8. That promises to be a rocky 17 days for GM and Chrysler, whose bosses insinuate the companies may not have the funds to enable them to see the New Year. For more information on this story, visit http://www.autoobserver.com/2008/11/caution-flag-waves-over-los-angeles-auto-show.html
Mitt Romney: Let Detroit Go Bankrupt
Detroit-born Mitt Romney, a candidate for this year's Republican presidential nomination and whose father was Michigan governor and an auto company executive, advocates letting Detroit automakers go bankrupt.
In an OpEd piece carried in Wednesday's edition of The New York Times, Romney, who is expected to make another presidential run in 2012, wrote: "Detroit needs a turnaround not a check." He suggested the turnaround path is through a managed bankruptcy. For more information on this story, visit http://www.autoobserver.com/2008/11/mitt-romney-let-detroit-go-bankrupt.html
Yeah or Nay on Bailout, But Don't Blame Detroit's Problems Only on Labor
Every day now, there are colliding opinions regarding whether an automaker bailout is wise - or politically and socially proper. As has been said many times as the domestic auto industry continues its frenetic unraveling, there's plenty of blame to go around, and a portion of it lies with the unions. The United Auto Workers has rarely been out of the conversation of what's ruined Detroit Inc., but arguments centered on the notion that fat, uncompetitive unionized labor is the root cause of Detroit's ills are specious - and little more than an excuse for some good-old-fashioned union-bashing. For an explanation of why this is the case, visit http://www.autoobserver.com/2008/11/yeah-or-nay-on-bailout-but-dont-blame-detroits-problems-only-on-labor.html
Sen. Shelby: How Sweet Is the Auto Business in Alabama? Not Very
Richard Shelby, the top Republican on the Senate Banking Committee, took to the airwaves over the weekend as the chief opponent of loans to Detroit automakers. His premise: This is a Detroit problem not a national problem and taxpayers shouldn't subsidize these poorly managed dinosaurs. But Shelby's state of Alabama is home to a trio of auto assembly plants and their affiliated auto suppliers. Alabama lured automakers to the state by dangling millions and millions of financial incentives in front of them in the form of infrastructure construction and improvement, job training for workers and tax breaks for the auto companies. In fact, in every case, Alabama outbid other states with its attractive offer, like the $30-million training center that Honda said clinched the deal for its choice. For more information on this story, visit http://www.autoobserver.com/2008/11/sen-shelby-how-sweet-is-the-auto-business-in-alabama-not-very.html
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