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| Pelosi to automakers: Plans better be good |
| 2009-02-15 |
| House Speaker Nancy Pelosi called on General Motors Corp. and Chrysler LLC to offer "credible" turnaround plans Tuesday, including pledges to meet tougher fuel economy requirements set by California and other states. They're in the process of going under for the third time. So put a brick in each of their pockets. In letters cosigned by House Financial Services Chairman Barney Frank, D-Mass., the California Democrat said the automakers should also commit to "protecting and sustaining the health and pension benefits" of workers and "an additional assurance that taxpayers benefit as corporate conditions improve and shareholder value increases." When they wink out of existence there isn't going to be any health and pension benefit for the workers and peasants. How's Studebaker-Packard's shareholder value doing lately? What kinda taxpayer benefit is American Motors providing? GM and Chrysler are set to submit extensive plans for restructuring their businesses to the Obama administration as part of the $17.4 billion in government loans that have kept them solvent. The market cap for GM is about $5 billion these days. We loaned them about $13 billion and we're going to loan them another $15 billion regardless of whether or not the turnaround plan meets San Fran Nan's test of 'credible'. And that's on top of the $18 to $20 billion GM owes to private lenders that they can't pay off. This is brilliant, simply brilliant use of public money ... Both were ordered to make steep cuts in debt and rework agreements with the UAW. "We are writing to stress the importance of your submitting a credible restructuring plan that results in a viable industry," Pelosi and Frank said in their letters. "And while you're at it, find Judge Crater." Chrysler has said it needs an additional $3 billion to ensure its survival on top of its $4-billion loan, while GM has not made any additional request for aid beyond the $13.4 billion it has received so far. Better to break either or both companies into their component parts and let them sink or swim, rather than creating a single point of failure. Even if the nation's driving Toyotas and Subarus, the military will still need Hummers and 2 1/2 ton trucks. The letter from Pelosi and Frank to GM Chairman Rick Wagoner and Chrysler Chairman Robert Nardelli asks the automakers for "a demonstration of your ability to meet or exceed" federal fuel economy requirements and "the emissions standards adopted by California and other states, if they receive federal approval." And how does that make them more competitive? It won't, but the cars they build to meet those standards will cost more. Cost more=sell fewer. How can you go wrong? California and 17 other states want to set limits on greenhouse-gas emissions from vehicles that automakers contend would lead to state-by-state sales limits on many models. The Obama administration may reverse a decision by the Bush administration and allow the rules to take effect within a few months. Brilliant. Simply brilliant. |
| Posted by:Fred |
| #18 Just go BK, flush the debt and the unions. |
| Posted by: OldSpook 2009-02-15 21:08 |
| #17 I can remember when Joan Claybrook was the head of NHTSA under Jimmy Carter. NHTSA tried to design a safe and efficient car. That experiment didn't work out so well; Washington doesn't do well at designing cars. Probably because there are so many attorneys in D.C. Lawyers designing instead of engineers is not a good deal. That has been a problem for a long time in the U.S. |
| Posted by: JohnQC 2009-02-15 17:59 |
| #16 Guys like Wagoner and Nardelli have the UAW on one side and Frank/Pelosi/Reid on the other. If I was in their shoes I'd be so disgusted I'd quit. |
| Posted by: Abu Uluque 2009-02-15 16:48 |
| #15 It would take a few dots to link together, but an agreesive GOPer should try to point out how Speaker Pelosi personally benefited from an exception to the minimum wage laws for the tuna processing plant somewhere in our pacific territories. I don't recall all the details, but essentially a classic case of limousine liberal double standards. I recall that the Speaker's spouse had the interest, and I'm sure the big 3 would be interested in similar wage flexibility within the law and outside of bankruptcy filings. |
| Posted by: Halliburton - Mysterious Conspiracy Division 2009-02-15 15:43 |
| #14 How come nobody cited my spelling error (should be 'throw' not 'through') and called me an idiot? Because we know you aren't an idiot, mhw dear. And many Rantburgers aren't keen spellers anyway. ;-) |
| Posted by: trailing wife 2009-02-15 15:02 |
| #13 The Pelosi GT (parody by Iowahawk): http://www.youtube.com/watch?v=rAqPMJFaEdY Hilarious! |
| Posted by: A_Rovian_Desciple 2009-02-15 14:05 |
| #12 To paraphrase the old saying about you and your bank: before Nancy and Harry loaned GM $13 billion, GM had a problem. Now Nancy and Harry have a problem. |
| Posted by: Matt 2009-02-15 12:05 |
| #11 Klang! Ahhhh... Thanks for the drink, Frank! |
| Posted by: Mike N. 2009-02-15 12:04 |
| #10 thank Gawd for F-150's! Drink up! |
| Posted by: Frank G 2009-02-15 11:57 |
| #9 How come nobody cited my spelling error (should be 'throw' not 'through') and called me an idiot? I guess if I want that type of treatment I'll have to post on the democratic underground site. |
| Posted by: mhw 2009-02-15 11:53 |
| #8 Actually DMFD's suggestion about the "Homer-mobile" makes sense. It isn't any worse than what what is being offered for sale now. |
| Posted by: WolfDog 2009-02-15 11:29 |
| #7 lol barbara |
| Posted by: rabid whitetail 2009-02-15 10:17 |
| #6 How 'bout this: |
| Posted by: DMFD 2009-02-15 10:15 |
| #5 "why not through in a pony too" Because even Nan and Harry know there's too much horseshit in this deal already? |
| Posted by: Barbara Skolaut 2009-02-15 10:13 |
| #4 pretty cars fuel efficient inexpensive keep wages high and protect pensions why not through in a pony too |
| Posted by: mhw 2009-02-15 08:30 |
| #3 Yea. Start building Oldsmobile Deltas again, you bastards. |
| Posted by: g(r)omgoru 2009-02-15 06:45 |
| #2 GM management must be wondering if it's really worth it to stay out of bankruptcy when the alternative is monthly meetings with SarBox Harry and Botox Nan, their new Super Board of Directors. A creditors committee could start to look pretty good, especially with Gittlefinger gelded. Now they could do an 11. Soon it will be directly to 7. |
| Posted by: Nimble Spemble 2009-02-15 05:47 |
| #1 Look at the market caps for some of the big banks that have received partial bail-outs from the Feds. It would have been cheaper for the Feds to simply buy out those banks. Imposing the proposed ridiculous emissions and fuel economy standards would severely restrict auto sales for many years to come. The public can't afford what is being manufactured now. |
| Posted by: Anguper Hupomosing9418 2009-02-15 01:35 |