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February 18th, 2009
05:00 PM ET

More money for GM and Chrysler?

From CNN's Jack Cafferty:

Two of the Big Three American automakers are holding out their hands again for more of your taxpayer dollars.

More money for GM and Chrysler?

Chrysler will discontinue the Dodge Durango, PT Cruiser and Chrysler Aspen.

General Motors and Chrysler say they need another $21.6 billion to stay afloat, this is in addition to the more than $17 billion they received a couple months ago. The companies have both put out plans for how they'll restructure in order to survive. I thought they were supposed to have already done that.

G.M. says it will cut 47,000 more workers, close 5 more plants in North America and cut half of its brands - Saturn, Pontiac, Hummer and Saab - leaving them with only Chevrolet, Buick, Cadillac and GMC. The company also says it's making headway in its talks with the United Auto Workers union and bondholders to find more ways to cut costs. Chrysler says it will cut another 3,000 jobs and discontinue 3 models - the Dodge Durango, PT Cruiser and Chrysler Aspen.

Meanwhile, this all puts the Obama administration in a tricky spot. Either they give the money and hope that the car companies don't come back asking for more in a few months. Or they say "no", which will probably force GM and Chrysler to declare bankruptcy. Both companies pointed out that the cost of a bankruptcy reorganization would be a whole lot steeper than their most recent loan requests.

The White House says it's reviewing the automakers' proposals and insists that "more will be required" from all parties involved to turn around their prospects.

The third Detroit company – Ford Motors – posted its biggest loss ever in the fourth quarter, but insists it can survive without government loans.

Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money?

Interested to know which ones made it on air?

Tom from Switzerland writes:
Apply the thumbscrews really hard: Don't give them another dime except for the development and production of highly fuel-efficient and alternative energy vehicles. Otherwise put them out of their agony and let these obsolete dinosaurs go extinct. The planet will breathe a lot easier.

John from New Hampshire writes:
Giving them more money while they continue to cut jobs is like going to the track and betting your entire week’s pay on a dead horse. It’s just not smart! Unfortunately for the people who depend on the Big 3 for income and revenue, I don't think more money is going to do anything! The market should decide their fate, and if it comes down to bankruptcy then so be it!

Ben from Boston writes:
Not another penny of government money until the entire board of directors and all executives are replaced. The workers could run the place better by themselves. What turkeys!

Janice from Aberdeen, South Dakota writes:
The stakes are the same as they were before. Bail them out or risk the loss of over a million auto-related jobs. I don't exactly think that many lost jobs would stimulate the economy. It would tank even further and risk putting suppliers out of business who are critical to all the auto companies and also aerospace and other industries. And, when the economy recovers, a strong auto industry with more green cars is what we need moving forward. Hold our noses and the executives’ feet to the fire, but yes – bail them out.

Mike from Buffalo, New York writes:
Jack, I'm guessing my next car will be a Ford!

Rex writes:
I'm tired of hearing what GM and Chrysler want. They got themselves into this mess, let them get out by themselves. I've been without a job since November. I'm the same as a lot of others; no one is bailing us out.

John from Santa Barbara, California writes:
Only when all parties involved in manufacturing cars are on their hands and knees, with their tongues hanging out, and are truly ready to resolve the problems.


Filed under: US Economy
soundoff (119 Responses)
  1. Terry from North Carolina

    Jack
    Without a serious investigation of all the reckless spending, corporate perks, and budget padding, I would not give GM or Chrysler anymore money. Both Auto makers and the UAW have to go through some serious cut backs before getting more stimulus funding.

    February 18, 2009 at 1:09 pm |
  2. CJ in Roanoke, VA

    No they should not, as the business model that they have been using is broken and they must pay the price with bankruptcy. How could they ever pay back the money that has already been lent to them? The Union and management broke the Big 3 and now bankruptcy is the only viable option. This bailout stuff has got to cease before the whole country is dragged down.

    February 18, 2009 at 1:10 pm |
  3. Russ in PA

    Hello, McFly! Let them restructure under Chapter 11 as should have been done in the first place. If they can't, then they can join Circuit City. We all need to learn that propping up bad business models with tax payer money just begets more bad business models – after all, what do they have to fear – and takes the money out of those of us that have not spent our last dime on taxes.

    February 18, 2009 at 1:11 pm |
  4. Conor in Chicago

    If the bankers who caused this mess get tax payer money for not creating anything except more wealth for the wealthy then Detroit should get money for creating jobs and products for the middle class. Anything short of that is Class Warfare and should be treated as such by the populace.

    If this government is going to have the gaul to give billions of tax payer revenue to corporations who ship jobs overseas but not give it to coporations who stimulate jobs in this country people better start making molotov's because this means war.

    February 18, 2009 at 1:17 pm |
  5. Ken Stutts

    No, let them become insolvent and sell all their assets in bankruptcy. Ford, and the other America automakers, i.e. Honda and Toyota, will buy up the pieces. Workers can move into these jobs or other technology manufacturing jobs. If they are not willing to accept the pay or take the necessary training to do these jobs, McDonalds is always hiring.

    February 18, 2009 at 1:22 pm |
  6. David in Granville, Ohio

    There will be screams of "NO WAY" from most people I am sure but I just don't think this is as simple as all that. The disasters of chapter 11 were well explored last time around. On the other hand there is no point throwing good mondy after bad.

    I'm glad I don't have to make this decision! It seems to be a lose:lose all the way!

    February 18, 2009 at 1:25 pm |
  7. Jim

    Jack,

    We invented the automobile. We should have a thriving American auto industry. Whether its main players are named General Motors and Chrysler, or maybe Jim's Green Car Company, is of no consequence. Like most Americans, I feel no loyalty whatsoever to the "Big Three" automakers and couldn't care less if they and their greedy, incompetent executives dry up and blow away. But I do care about the workers, you know, the folks who actually build the vehicles. Money sent to automakers should be targeted at protecting the workers from starvation and homelessness. If that means helping the automakers regain their market footing, assuming that really is plausible, then so be it. If not, let them crumble but use the money to help the workers survive, retrain, and find new jobs, maybe with Jim's Green Car Company.

    Jim
    Reno, Nevada

    February 18, 2009 at 1:25 pm |
  8. JD in NH

    It depends. I read news reports that part of the last bailout money was spent in Brazil. Considering it's American taxpayer money trying to help unemployed Americans and fix the American economy, there would need to be strings attached. Another thing to consider is their legacy costs. Will they ever be able to overcome the cost of them or will taxpayers subsidize retired autoworkers forever? It might be time to reorganize under the bankruptcy laws.

    February 18, 2009 at 1:28 pm |
  9. Christine Watsky from Ocean City, MD

    I just really wish that American cars had good service records and good mileage. Then I would love to buy American. I hope that any bailout funds include those goals, as well as hybrid technology and the like.

    February 18, 2009 at 1:32 pm |
  10. Janice in Tennessee

    Absolutely NOT! They got themselves into this mess, the upper management (as far as I know) haven't taken a pay cut, and I heard this morning they are laying off another 50k employees. Where does it end. Unless the working people have jobs to buy cars with, all the money in the world isn't going to solve their problems.

    February 18, 2009 at 1:40 pm |
  11. Geoff

    Being from Detroit, I feel that GM and Chrysler should both be allowed to burn. They have done the damages to themselves. They allowed the Unions to get away with robbery and aftermath of it is higher car prices....25 30 dollars an hour to make screws and to stand on a line and put things together? HA! let the robots do it thats what there for right? The white collars are just as guilty. With them giveing themselves bonus's that most americans could never see in a life time. Down with the UAW and the big 3. if you want me to buy american again then make the cars cheaper by getting rid of the UNIONS and put a cap on how much these car execs make! Heck pay me the millions of dollars to run their companies into the ground like they did! I am sure i could a great job at it!

    February 18, 2009 at 1:42 pm |
  12. samir from florida

    I'de like Honda, Toyota or even Hyundai to come to the US and give them some taxpayer money. They have shown innovation and efficiency, something that seems to be in line with the Obama vision.

    February 18, 2009 at 1:43 pm |
  13. Melissa

    I was ok with the first time. But now they're just trying to milk a dry cow and they're going to damage them doing it.

    February 18, 2009 at 1:55 pm |
  14. Kevin - CA

    Jack,
    It depends if Congress is going to implement policies that protect auto manufacturing in America (Toyota, GM, Honda, Ford, Hyundai, etc.)?
    If not – then don't waste the money and concede to Chinese imports at 1/2 to 2/3 the price of comparable US manufactured auto's. Basically, let US auto manufacturing go the way of electronics, computers, textiles, furniture, etc.
    BTW, it should be noted that the Chinese imports include hybrids manufactured by BYD – the world leader in battery technology. These aren't inferior autos as some might suggest.

    February 18, 2009 at 2:04 pm |
  15. Robbie

    No. They have not done what they said they would do. Trim lines and trim jobs. You can't come to the table the day you want more money and say we just annouced we are cutting lines and jobs. Go out of business.

    February 18, 2009 at 2:11 pm |
  16. Christine, Edmeston NY

    I am so sick of financing those who consistently fail to make good on the deal. Six months ago, I would have shouted Yes, Yes, give them the money, and the rest of us will benefit. Problem is, it has not been playing out that way. So, No, No, give the rest of us the money directly, and cut out the greedy middlemen altogether.

    February 18, 2009 at 2:17 pm |
  17. Denis Duffy

    Not another dime. Is that a short enough answer?

    Denis
    Pittsburgh, Pa.

    February 18, 2009 at 2:28 pm |
  18. Pablo in Tejas

    Jack
    Must say i am not too keen on the idea, but then these days i drive a Toyota.
    On the other hand, if the loan was conditioned on GM bringing back a cheap sturdy, reliable, easy to work on cars, like my old '57 Chevy and my 1966 Chevy II, then I'd go for it.

    Pablo
    Arlington, Texas

    February 18, 2009 at 2:31 pm |
  19. Jenna Wade

    Should General Motors and Chrysler be given additional taxpayer money?

    What would be the alternative – millions in lost jobs..

    Either way we are going to pay..

    Jenna
    Roseville CA

    February 18, 2009 at 2:35 pm |
  20. Carol c.

    People who say no loan should get in their vehicles and see how many people still want to buy American! I have been looking and it is 6 American for every 4 foreign and I have been doing this several months. My neighbor just bought a new Buick and is thrilled with it and always buys American. It takes a while to re-tool but we are a resourceful people and they will get it done and we will pat ourselves on the back and the naysayers will say "I never had any doubt."

    Knoxville, TN

    February 18, 2009 at 3:01 pm |
  21. Craig from Pa.

    No!!! Let the oil companies bail them out!!!..Without cars with gasoline combustion engines, their profits will suffer eventually....Didn't Exxon/Mobil have a 14.3 billion dollar profit the last quarter of 2008??

    February 18, 2009 at 3:02 pm |
  22. Rex

    I'm tired of hearing what GM and Chrysler want, they got them selves into the mess, let them get out by themselves.
    I've been without a job since November, I'm the same as alot of others, no one is bailing us out. The latest Stimulus package does nothing for me and I don't see that the Mortgage announcement today will help either.
    I worry about what is going to happen to my children and grandchildren, they are the ones that are going to suffer in the long term.

    RW
    Maryland

    February 18, 2009 at 3:07 pm |
  23. David Bebeau

    Jack
    Yea right more money for nothing.A single mom working two jobs
    or a poor man in Atlanta is paying taxes so our government can give it
    to workers making 40 dollars an hour and when laid off they make
    95% pay.How in heck can you as the poor to pay for unions and
    companies that will not restructure.I mean Jack this is absolutely
    insane.NO MORE MONEY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    David Bebeau

    February 18, 2009 at 3:11 pm |
  24. Tony in Michigan

    Not with that many job cuts announced and more sure to come. If these companies want American money the should keep American jobs and start cutting overseas jobs first.

    February 18, 2009 at 3:16 pm |
  25. Tom

    Here’s my question to you: Should General Motors and Chrysler be given additional taxpayer money?

    No, let them fail, They are already cutting about 70% of the jobs... If GM and Chrysler go out of business I think Ford sell more cars and be able to survive, its business! You make bad choices you lose, you make good choices you win!

    Here’s my question to you Jack: Should Obama keep flying around the country to sign bills and grandstand like hes running for POTUS still? Tell me how much money its costing us for his "trips" to sign bills.

    February 18, 2009 at 3:41 pm |
  26. BRUCE, ST PAUL, MN

    The money they got last time was a "bridge loan" to help them get to this point. I don't think anyone thought they would become profitable in a six week period. If we did not intend to help them become viable, then we should not have given them the bridge loan. It would not make any sense to spend that money and then cut them off.

    February 18, 2009 at 3:42 pm |
  27. Ben from Boston

    Not another penny of government money until the entire Board of Directors and all executives are replaced. The workers could run the place better by themselves. What turkeys!

    February 18, 2009 at 3:42 pm |
  28. Anne/Seattle

    I feel loans should have been denied all of the auto manufacturers. In economics there is a pattern of growth that deteriorates without the guidance of those in charge. If these companies are allowed to fail, they will become part of a natural economic cycle. Or maybe the two asking for money will give up and follow Ford's example and try to make it on their own. Had both owners and investors had paid attention to all the signals over the past few years, they wouldn't be in this situation. I'd rather see some of the proposed loan money go toward helping auto workers train for other jobs.

    February 18, 2009 at 3:45 pm |
  29. Sylvia (San Diego, CA)

    Enough is enough.... We need to stop throwing good money after bad.... Chrysler and GM need to go into bankruptcy protection. If they can pull out of the restructuring intact, then they will be a stronger and viable company... If not, let them fold.... We are just postponing the inevitable.....

    February 18, 2009 at 3:46 pm |
  30. Nuwan

    A tricky question Jack. Whether we give money or not, it seems like tax payers have to share some burden. So someone has to select a lesser evil deal.

    Nuwan from Houston, TX

    February 18, 2009 at 3:51 pm |
  31. Patricia

    This is where the rubber meets the road, so to speak. Too many people's jobs depend on this, not just the fat cats of G.M. or Chrysler. But, these loans had better be tied to an air-tight payment plan.
    Patricia
    Palmdale, Ca.

    February 18, 2009 at 3:51 pm |
  32. Sue -Idaho

    Jack, this is kind of one of those damed if we do and damed if we don't situations. If we do it could save jobs, if we don't well it would be the right thing to do since these guys simply don't get it and haven't since the seventies. I say Nationalize them too. Then restructure and make them agree to making more gas efficient and green cars. Then they can be independent again. NO MORE GAS SUCKERS!

    February 18, 2009 at 3:52 pm |
  33. David,San Bernardino,CA.

    The only way that GM and Chrysler should get more money is to fire all of the management teams and put someone who knows what they're doing in charge. Taking taxpayer money and firing thousands of workers is not what the stimulus is supposed to do. It is supposed to put people to work not enrich the CEO's and Wall Street.

    February 18, 2009 at 3:53 pm |
  34. Teresa- Rutherfordton, N.C.

    Enough is enough!!! Absolutely not! Unless of course, the government assume ownership of the companies and use the profits toward the gigantic debt we have gained. Hummm.... I really don't see or understand how a bankruptcy reorganization could be a steeper cost to me as a taxpayer.

    February 18, 2009 at 3:53 pm |
  35. Doug in CO

    We don't need to give them any taxpayer money. Welcome to the free market; you take the tough times with the good. Taxpayers didn't get any of their money when they made it, and I don't think I should get saddled with their poor decisions now. If I wanted to help you out, I would have bought one of your cars.

    February 18, 2009 at 3:53 pm |
  36. Diane from Wichita Kansas

    Jack – am I just stupid or what? We've given them a gazillion dollars already and they are still at the door with their hands out, crying all the time in their five hundred dollar suits!! Give me a $10,000 voucher backed by the government to buy a new car, hell, give me 2 and I'll go out today and spend those suckers and spur the economy like Mr Obama wants us to. We've given everybody that is in need money to do whatever they want, no stringent strings attached and I just saw the bleak unemployment projection. Wasn't a good portion of this stimulus to spur the unemployment to a lower number:? Instead they don't see a change until 2011. What do we do in the meantime and where in the hell is the benefit of this stimulus????????

    February 18, 2009 at 3:53 pm |
  37. Tripp Mechanicsburg, PA

    So they can close more U.S. plants and lay-off thousands more Americans while they redouble their operations in other countries? Hell no! These CEO's and Boards of Directors do not have the best interest of Americans at heart anymore than the fifty-thousand dollar suits controlling our nation's banks and Wall Street. You guys in the media are just plain lazy. As long as you use anonymities like "the banks" and "Wall Street" instead of naming the names of those actually responsible for making the decisions that lead us to the brink of calamity, we are sunk. These corporate elite are the equivalent of the French aristocracy of yore. They will pooty on their thirty-five thousand dollar commodes and tell us to eat cake while we are evicted from our homes. Waiting until enough people are hurting bad enough to march on the Capital is not prudent. The time for action is now.

    February 18, 2009 at 4:03 pm |
  38. Jasmine in Germany

    No. There are other ways for them to help themselves. They could create a profit sharing employee investment plan. A percentage of each employee`'s salary gets invested into the company monthly, the employees get a high return after stabilization. Might be tough on many employees, but if they want to keep their jobs, they'll do it. The low end employees would have the right to monitor the expense accounts of the high end employees and have transparency to how the company is spending. No more bonuses, no more parties, everyone flies economy, and no more buddy system contracts. Put the company into the hands of its workers.

    February 18, 2009 at 4:03 pm |
  39. Jackie in Dallas

    I’d give the money to Ford, and let GM and Chrysler go into bankruptcy. If Ford is the only company that thinks that they can get out of this situation without a bailout, they are the only company worth investing IN.

    February 18, 2009 at 4:05 pm |
  40. S Callahan New York

    Do we REALLY have a choice?
    What's the alternative...unemployement, more foreclosures, buisnesses close, inability to get parts for our current vehicles,
    whole states because Welfare States, and on and on. The auto demon is tied to pratically everything that makes money go around in this country.....

    February 18, 2009 at 4:07 pm |
  41. CJ in Atlanta

    I am fine with giving the big 3 additional stimulus money so long as there are stipulations that limit union benefits the workers are entitled to be paid with those tax dollars. No other US industry has labor unions with such high demands of the employers. I feel that they need to back down and get out of the way so that GM and Chrysler can spend less money on benefits and more money on building quality products at lower prices. The unions have caused the big 3 to spend themselves into the poor house on benefits rather than quality products.

    February 18, 2009 at 4:10 pm |
  42. rpb Viburnum Mo

    We have to keep our auto companies going too many people will be out of work if they go under. Everyone talks about how much tax money we are giving to the industry but nobody talkes about how much the government gets in taxes for all these auto workers. Why don't we here about how much revenue the government gets back in taxes for all these workers and related industries I bet it's a wash.

    February 18, 2009 at 4:38 pm |
  43. DJ Heinlein (Clairemont, CA)

    I think they are in need of financial help, but would throwing money at the two companies really going to help their situation? I love my two year old Dodge Caliber which I had purchased with a sense of patriotism and personal satisfaction. I knew I was supporting my country by purchasing an American vehicle that I considered to be built by a dependable American company who could build a durable vehicle. It is painful to see the misfortune of an industry that should still be a contributing player of the Gross Domestic Product.

    February 18, 2009 at 4:39 pm |
  44. C. Farrell, Houston, Tx

    No, no, no. GM and Chrysler shouldn't be asking for additional money which is more proof they haven't looked at their product sales or their so called restructuring. It appears to me these companies are using taxpayers money to make payroll.

    February 18, 2009 at 4:47 pm |
  45. Evan

    Jack- I am 21 years old, and I am tired of the bailing out of Wall Street and these auto companies. These people are supposed to be adults, and they are handling themselves as if they are incompetent page boys. My generation will suffer from their incompetence. To answer your question: LET THEM GO BANKRUPT!

    February 18, 2009 at 5:11 pm |
  46. Cami

    NO!!! They do NOT need any more of my hard earned money!!! I am so tired of them standing out there with their hands out while they continue ot run business as they have always run business. They have had plenty of time to start implementing changes.... starting at the top.

    February 18, 2009 at 5:12 pm |
  47. Anthony Hernandez

    No, the solution is simple and traditional. It is called bankruptcy. This is the legal protection businesses and individuals seek when they become insolvent. It is the fastest and least costly option to restructure a company. Let's not put any more debt on the shoulders of our children. It is their tax money we are spending. Th treasury is borrowing and printing to pay for these bailouts. Stop the madness!

    February 18, 2009 at 5:12 pm |
  48. Crystal

    NO!!! They couldn't manage the first amount. What makes anyone think they can manage a second? The government might as well take over the companies and start selling cars.

    February 18, 2009 at 5:12 pm |
  49. Ben (los angeles)

    Wait wait wait, so they are asking for more money....And they are killing jobs? wasn't giving them money supposed to save jobs? Am I missing somthing here? WE NEED NEW BUISNESS MODELS! NOT BAILOUTS AND SHORTCUTS TO STAYING AFLOAT! Give em the money if the CEOs all quit. Thats what I say.

    February 18, 2009 at 5:12 pm |
  50. Dave, Altoona, PA

    I have mixed feelings. I hate to see any one lose their job because of poor management decisions,
    but where was my bailout when I had to close my own business after 22 years because of changing marketplace conditions?

    February 18, 2009 at 5:12 pm |
  51. Tuffygoyf

    Yes. Letting the domestic auto industry collapse would deal a mortal wound to the US economy.

    February 18, 2009 at 5:12 pm |
  52. victor

    why give them any more money if they plan on closing 5 plants and laying off 21,000 more people to the unemployment lines if that is the case don't give them a dime!!!!

    February 18, 2009 at 5:12 pm |
  53. Daizon from Montreal

    Jack,

    This is a situation that has flowered into a huge problem. Part of this problem is these huge companies that are labeled "Too big to fail". But if their businesses aren't doing what they should why should they benefit from tax payer money? Dealing in the investment field, ive learned alot about this situation and I've witnessed alot of companies fall under with not a cent from the governement. The government is posed to serve the people not the corporations.

    February 18, 2009 at 5:12 pm |
  54. Jennifer Stix

    NO more money for Chrysler or GM - let them sink or swim. We can all drive Fords and Toyotas - this is highway robbery of the American taxpayer. . . . . .

    February 18, 2009 at 5:12 pm |
  55. Alicia from Daytona Beach

    I don't believe any privately-owned institutions should be bailed out, including the automakers. If they are eligible for a bailout, why shouldn't my business be bailed out too?

    February 18, 2009 at 5:12 pm |
  56. Barb

    No more to them. No company that until recently paid employees to do nothing because that was the only way the employees would "allow" modernization and efficiency to be introduced to the manufacturing process deserves any more of our money.

    February 18, 2009 at 5:12 pm |
  57. Krystyna George

    I lost my F/T job in December and am about to lose my P/T job. If the government would like to 'bail me out' and send me some money, then I (as the taxpayer) will agree for them to help GM (yet AGAIN).

    February 18, 2009 at 5:12 pm |
  58. Mark

    Absolutely Not! If GM & Chrysler had been making fuel efficient cars this would be a different story. The fact is they make a horrible product, that is not economically friendly. If Honda & Toyota can manage their affairs why should it be different for GM & Chrysler?

    I don't think it's right to give them another loan when their plan for change is to cut jobs and close down plants. How does this make sense for our Economic downturn that we are in? We need to stop bailing out companies that deserve to fail.

    February 18, 2009 at 5:12 pm |
  59. Ruthvik [Princeton, NJ]

    Does anyone buy American cars anymore? I am sure they will fail anyway. Unless they produce very fuel efficient cars and I don't think they know what fuel efficiency is to begin with. GM and Chrysler don't have anything promising.

    February 18, 2009 at 5:12 pm |
  60. Larry Christian

    I say go ahead and give the additional money to Chrysler, as they have done a better job in managing their company; as opposed to GM. Then let Ford and Chrysler buy out GM, if they want; but GM (who once ruled the corporate world) deserves no more chances.

    February 18, 2009 at 5:13 pm |
  61. Kathryn, Santa Barbara, CA

    No. We're done. GM & Chrysler, while American icons full of sentiment, need to file for bankruptcy.

    The idea last Fall was that they would re-structure – but the idiocy of giving billions to the very management that mis-managed in the first place always struck me as insane on the part of the Government.

    Personally, I wanted a fuel efficient car 20 years ago. I always, and still buy, Fords. Every time I needed a new car, I'd ask for a hybrid only to be told "sold out" or "unavailable". I think if a company is out of touch with the consumer, it should be permitted to fail.

    February 18, 2009 at 5:13 pm |
  62. Adriana, Virginia Beach

    It's actually annoying to think that if we don't give them money, then all those workers without jobs will be the ones to suffer.

    February 18, 2009 at 5:13 pm |
  63. Andrew

    No, no more money for the makers of cars that were substandard and give horrible mileage. The price for failure in the free market is being edged out by somebody with a better product. This is the real American Way. They made their bed, now they need to lie in it. We have bigger fish to fry keeping people in their homes.

    I agree with a previous comment – let the oil companies with their "record profits in all of history" help them out. The low mileage vehicles made them a HEAP of money. It's time to give back...

    February 18, 2009 at 5:14 pm |
  64. S.J.

    No way Jack, throwing money at these auto makers will not work in such a horrible economic crisis. They will continue to ask for more, and more month after month. GM and Chrysler will never be able to compete with Japanese imports when you consider what they've accomplished, or rather, what they havn't accomplished over the last few years. Let them fail, and create new jobs elsewhere.

    February 18, 2009 at 5:14 pm |
  65. Daniel Mullaly

    We should only bail these guys out if they are willing to create jobs and not take them away. They need to use our money to help us save American jobs or just go bankrupt. I own an American car and I bought it thinking I was keeping Americans employed

    February 18, 2009 at 5:14 pm |
  66. Douglas Gault

    Jack – 17 billion didn’t save a single job, yesterday they announced more job cuts and plant closings. Now, another $21.6 Billion for what, more inferior products. Is it political correct to say this is extortion?

    February 18, 2009 at 5:14 pm |
  67. M.J. Shaw

    Are you seriously asking this question? Has everyone lost their minds? I have believed from the start they should have never received help. I am a contractor and suffering due to this economy. No one is offering me any hand-outs, and I'm not asking for any. We live in, and allegedly embrace, a competitive market and if the auto makers can't cut it – then they should fail. Period. When are we going to imprison these thieves? These "I need tax-payer money but don't want any government regulations, oversight, or czars being imposed upon me" scoundrels should be tied to posts and drowned in tomato slush...

    February 18, 2009 at 5:17 pm |
  68. C.E. Family, Austin, TX

    Hell to the no! Enough is enough. What is going on? Say government money, and all the U.S. businesses and banks have their hands out. What if there was no government money? What would they be doing–business as usual, that's what they would be doing. It's like everyone has been lying about how well they have been doing, and the whole U.S. business sturcture is rich on paper only. White paper not green paper.

    February 18, 2009 at 5:17 pm |
  69. William C., Waterford, ON

    What are GM, Ford, and Chrysler doing for the American Tax payer in return?

    It would assume to be plausible that if the Federation is going to employ, and so manage via sound investment practice, the general companies of these Automanufactures, then does it not seem vested that they do work directly for that Federation, when it is the conglomerate of the Taxpayer.

    The United States Postal Service needs an new system of management and digital delivery, both mechanical and electronic, to couple all other infrastructure but for, oil/gasoline and other fossil fuels.

    To employ the generation which is not yet at work, because no advancement has entered to employ them.

    So to call it now: the United States Postal Service when referring to that international digital electric railroadway which will solve for the exhuastion of oil so prospected; does it remain in the title of the Virgin Earth Challenge, when the government is directly involved instead of a private organization of investment and care?

    I think the patent has change more than fifteen percent, when that engine of manufacture is included, in all the intuition of the known universe is caculated as per contract rights.

    February 18, 2009 at 5:17 pm |
  70. Jason in Delaware

    No. We've given them billions already, and as you mentioned it was supposedly outlined when we first forked over billions. Where did it all go? Let them go under. If they cannot manage to put money into their own business to keep up with today's standards, then let them close their doors. It's basic business economics: you spend money to make money, yet you save money for expansion through technological upgrades, equipment, or anything that may be needed to avoid situations like this. Let the new age of better created, running, and safer foreign car manufacturers begin and let's move on and save ourselves some money in the process.

    People may lose jobs, but why continue this facade and fork over all this money through a company when we can just do so through the government help plans to benefit these workers and allow them to take some time and go through vocational rehabilitation. At least we'll have the same situation, but with better experienced workers ready for any upcoming stimulated economy that will help them gain a job based on their new experience and not on outdated and old car manufacturer experience. Honestly, this smells like big business practice to make the rich richer.

    February 18, 2009 at 5:17 pm |
  71. Gary

    There are alot of people suffering from this economic hell. I am unemployed, lost 40% of my IRA with no promise of employment in the near future. Could you please tell me why the UAW workers feel that they are above taking a pay cut? Do you realize how many people would line up to do their work for $15 an hour? They need a reality check.

    February 18, 2009 at 5:17 pm |
  72. Billie J.Schmidt

    The only way that the Obama administration should help the car companies out is if they bring the jobs they have sent over to China and other foriegn companies.If they bring all those jobs back to the states then yes we should help them, if they don't let them ask those countries for help to bail them out.

    February 18, 2009 at 5:18 pm |
  73. mary

    No more. The money seems to be going to the top guys. Their improvement of the company is to get rid of the employees and certain car models. they want everyone to earn $8.00 an hour, and pay for health insurance. If every major company keeps laying people off, no amount of the presidents package will work. No work, no buy.

    February 18, 2009 at 5:18 pm |
  74. stephen mial

    Negative!! Not as two different entities. Chrysler and GMC should be forced to merge with one another to become the second major motor vehicle manufacturer in the US and any further bail out funding predicated on this new corporate structure of the combined vehicle manufacturers. Other world Powers do not have multiple motor vehicle manufacturer and there's no compelling reason for the US to have more than two major vehicle manufacturers

    Steve
    Clifton,VA

    February 18, 2009 at 5:18 pm |
  75. RICHARD in Miami

    These major multi-billion corporations are pan handlers running the same game as the guys holding signs and washing windshields at the red lights in our streets. They (the drifters and homeless) ask for any spare change but these captains of industries (National and international banks and automakers) are begging for spare billions; that's the only difference.

    February 18, 2009 at 5:18 pm |
  76. David

    No more money. I have no more patience. Why hasn't the UAW given concessions to make this work if it's so dire. Enough is enough. If I ran a business the way they run there business I would have to declare bankruptcy. The way I see it, they have 2 choices Chapter 7 or 11.
    Remember, If you have a job it's a recession, if your unemployed it's a depression.

    Dave
    San Francisco

    February 18, 2009 at 5:19 pm |
  77. richard friedman

    NO!! They both have made lousy cars for the past 20 years. They started to lose money before the world financial crisis took hold. I will add that they were duped by Bush into making gas guzzling SUVs because that genius was giving tax breaks to buyers of those gas sucking road hogs instead of giving them for smaller more fuel efficent ones but the top brass at both companies were paid millions of dollars to see through that kind of stuff and didn't. They opted for the short term satisfaction so prized by Bushco. Just look at the housing crisis. The same method here.

    Retool those plants to make electric cars and batteries!!

    February 18, 2009 at 5:19 pm |
  78. Coretta Thurman

    No! Do not give them anymore of our tax payers money. They are part of the problem. The automakers are sending jobs over seas and closing plants in the United States. Tell them to ask Mexaco and Canada to help them out. If they want our money then they need to keep jobs available in the states and close those additional plants overseas.

    February 18, 2009 at 5:20 pm |
  79. B.J.

    No! No! No! Have we not learned anything from the last time we gave these auto companies money. The problem is not cash, it's confidence. Consumer confindence, or rather the lack there of. Americans are just not confiendent with domestic car manufactuers, and until they are, they won't be buying American cars any time soon. We've had a front row seat in watching these guys run some of our greatest American companies right into the ground. I don't know about you, but auto CEO's begging for my money doesn't make me want to buy a car from their companies.

    February 18, 2009 at 5:20 pm |
  80. Cheryl in Phoenix

    No. Businesses that stay ahead of the change curve thrive and those that don't, don't. This has been true in the technology industry and now we're seeing it in the auto industry. The recession simply accelerated the downward trend of these companies and its time for the purse strings to close. They are going to put tens of thousands of people out of work with or without the money. Let's put our focus on investing in areas of future growth instead of staving off the inevitable and lose billions in the process.

    February 18, 2009 at 5:20 pm |
  81. Maggie Gunter

    Yes Jack we should. We knew that this was going to happen. They only got a portion of what they originally requested at the 1st payout and it was my understanding that they were to utilize that initial loan and return with justification for more.. As long as the documents are in order, yes we should.

    February 18, 2009 at 5:20 pm |
  82. Luther Chicago

    Hell NO! The auto companies are GREEDY. They are closing plants, laying off workers and cutting car models. Auto companies have not said how many of the cars in USA dealerships are infact made outside the USA.

    The auto companys announced plans will save them billions. Add to that, the sale of some of their private jets and reducing top executive salaries and they have the billions they want the tax payers to give them.

    NO, no more money, it will not save jobs in the auto industry or the others companies that support them.

    February 18, 2009 at 5:21 pm |
  83. Mrs.B

    I would like to know since the government loan money to the banks and the auto industry in an effort to help there continued exists. Could the auto makers (GM and Chrysler) go to the big banks (i.e. Bank of America, Citigroup, etc.) that I am sure they bank with and take out a loan?
    I think since the government has loaned money to both banks and the auto industry they should make the bank give loans to the auto industry, or they should make the BIG banks give the money back since they are not doing what they are suppose to be doing.

    Mrs. B.
    Iowa

    February 18, 2009 at 5:21 pm |
  84. Valerie Da Silva

    You really have to be kidding-–NO!NO!NO!-if they get another bail out you can be sure they will keep coming back for more-what are they doing wiht the money anyway-–it should all be itimized exactly where every penny has gone--and I'll bet my bottom dollar it wasn't into the pocket of the workers

    February 18, 2009 at 5:21 pm |
  85. Fred / Chicago

    They should restructure under bankruptcy like the airlines. No one was bailing myself or the many other people out when we were forced out of business due to all the buyouts that the big freight companies were doing, essentially dismantling so many of the of the smaller business people like myself had built up.
    GM and Chrysler were the makers of their own demise!

    February 18, 2009 at 5:21 pm |
  86. mike

    Hi Jack,

    i like your style tell as it is.

    Yes jack the need to support this critical industry is of the utmost importance,if the president and the us goverment does not support GM and Chrysler the 600000 jobs lost in the american economy in january will be doubled in the months to follow both in the US and Canada

    February 18, 2009 at 5:21 pm |
  87. Daves Cave - Oskaloosa, KS

    NO. Why give money to companies that do not produce products people want to buy? All we're doing is giving money to the white and blue collar workers of the company. If noone buys their product, what good has been done? It's obvious the administrative and the UAW workers are grossly overpaid and therefore cannot compete in the world market. New auto producers need to emerge that are competitive. Note that Ford is still kicking. Henry would be proud.

    February 18, 2009 at 5:22 pm |
  88. Michael

    It is a simple matter of supply and demand. The government should supply the funds for these auto-makers, to bail them out, only after they have fulfilled several demands; dramatically increased fuel efficiency, environmental standards and the creation of more jobs for Americans. For far too long, too many industries have gotten away with far too little regulation, and that is why we are in the economic situation that we are in now. This is change that we need.

    February 18, 2009 at 5:22 pm |
  89. darrelltxgm

    NO! Why not force all of these auto industry companies to sell off all of the current product that they have sitting on lots first? I mean...a real bargain basement sellout! Then...they can count their monies and truly be respected when or if they still need/want help! Til then...they are just greedy companies that want to eat their cake and overcharge us for every piece! We all need a bailout! Somebody come and pay my bills for me!

    February 18, 2009 at 5:22 pm |
  90. Will Redd/ Charlotte, NC

    Absolutely not ! The need for a second bail-out is a sure sign that GM no longer has viable company. It's better to let it collapse and start all over again. Maybe next time, they'll build better looking cars that don't all look like police cars and be smarter and futuristic business people. By the way, if america would build an american car I can be proud of, I'd gladly give up my LEXUS of 9 great years. Really!

    February 18, 2009 at 5:22 pm |
  91. Bill

    Absolutely NOT! Enough is enough, the insanity has to stop. The greed, arrogance and expectation that no matter how bad they screwed up doesn't matter because we cannot afford to do without them has reached/exceeded the threshold of what we should be burdened to shoulder as taxpayers. They continued to make large, unreliable vehicles that no one wanted and in the midst of an increasing energy crisis... duhhhh. Please ... STOP THE MADNESS!

    February 18, 2009 at 5:23 pm |
  92. carl bennett

    Jack,I no skin off your nose.but there is about 3million people that will be hurt very badly if Gen.Motor And Chrysler go in bankrupcy.Please show some care.C.B.Ohio

    February 18, 2009 at 5:23 pm |
  93. Owais

    In the name of free market capitalism, GM, Ford and Chrysler milked the inefficient SUV gas guzzling market for all it was worth completely ignoring the long term market trends. Additionally, their bad management, inefficient operations, poor product quality and service caught up and now they demand "socialist" help. Honda's, Toyota' s and BMW’s are also made in the US, and indigenous US big three cant push the "buy American" blackmail rhetoric anymore.

    February 18, 2009 at 5:23 pm |
  94. Scott Januszyk

    Absolutely not! I have worked with a door system supplier to Chrysler and have friends who will lose their jobs if they go bankrupt and all of us agree the big 3 need to close and the motor city need to move somewhere else. Speaking from 8 years as a tier 1 supplier to them they are easily the most inefficient companies in the US and have nonhope to improve!

    February 18, 2009 at 5:23 pm |
  95. Bill in Kansas City

    These corrupt car companies don't deserve one more penny of tax payer money. Obviously GM and Chrysler can't be trusted to change their ways if the 17 million we gave to them months ago has now vanished. What makes us think this time will be any different?

    February 18, 2009 at 5:23 pm |
  96. Steve Pearson from Alaska

    As harsh as this sounds, the market should be allowed to do its job. GM, Chrysler and perhaps Ford ignored the growing drumbeat. If they could not adapt, they should fail.

    The money that might be otherwise thrown away to bail sinking ships (and paying inept CEO's and Boards of Directors) should be used to retrain the affected workers (perhaps in green energy industries), provide them with iterim relief so they can pay their bills, and perhaps purchase foreclosed plants at bargain rates so that they can be sold/converted to more useful endeavors (such as manufacturing wind turbines).

    February 18, 2009 at 5:24 pm |
  97. Ram Pai

    Yes we need to do whatever we can to rescue GM and Chrysler. This will save three million jobs. I understand that restructuring they are doing is going to put us back in the driver's seat as far as future of this industry is concerned. We may be again be the leaders in innovation and technology in this field ten years from now. Won't it be great !!!!!!!!!!!!!!!-RAM

    February 18, 2009 at 5:25 pm |
  98. William Castillo Manteca Calif

    I am tired of hearing about how much the auto industry is suffering.How do they think that they are going to survive when the economy is in the dump and no one can afford to buy a new car.What is going to happen if we keep giving them money and they can't go any further.All my tax paying dollars went down the tubes.If these corporate executives were relly worried about there companies why don't they give up there salaryies and all there perks that they have been enjoying over the years.

    February 18, 2009 at 5:25 pm |
  99. Jean from Florida

    No, absolutely not! Our home is in foreclosure and we lost 120,000 in equtiy not even being our fault because of market conditions, and we cannot find employment. Where is our bailout??

    February 18, 2009 at 5:25 pm |
  100. Michael

    It's time for the auto industry to go Chapter 11, regroup, and renegotiate their contracts with the unions, or, better yet, hire non-union workers. The high salaries and extra benefits the workers are receiving are pricing the poorly designed and poorly built American cars right out of the market. It's also time to redesign these American clunkers. I say "no" to any more bailout money.

    February 18, 2009 at 5:25 pm |
  101. John, Roanoke, VA

    No way, no how! Obviously the management of both corporations know little on how to run a business prosperously. ALL of the managers of both companies should start to be paid by the hour much like their union employees. No wonder Consumer Reports continually gives both auto makers such bad marks on their products.

    February 18, 2009 at 5:25 pm |
  102. Terry Malason Ambler,Pa`

    Of course not Jack. If we gave GM and Chrysler more money, hopefully to save their operations and several hundred thousand jobs, we wouldn't have enough money to give away, literally "give away" to some other country like Afganastan or Iraq so that down the road a year or two they would have armys strong enough an d financed well enough to give us a good fight in the war that they start against us.

    February 18, 2009 at 5:26 pm |
  103. Mike, Syracuse NY

    Let them go bankrupt. Then they can tear up those onerous union contracts and put in place a compensation system that reflects reality. If the union workers won't accept, they can walk. There will be 20 applicants for each position willing to work for half of what the union workers get.

    February 18, 2009 at 5:26 pm |
  104. Bill from Michigan

    I do not understand government aid for Chrysler. They are owned by an investment company that has more money than the government. GM on the other hand has a huge problem and it's not their fault that Wall Street bankers tanked the economy. I think we should help out GM and let California sink since they refuse to buy American cars. It seems they forgot about the old saying that "What Goes Around Comes Around". I personally wouldn't be seen in a foreign car.

    February 18, 2009 at 5:26 pm |
  105. Mitchell from Florida

    Yes they should Jack, but only if they start turning out school buses, police cars and fire trucks.

    February 18, 2009 at 5:36 pm |
  106. Mike Andersona

    I am a GM lover, I own a Hummer and Corvette...yea I know not very green but I love them.

    I would NOT support giving them more money. They got 17billion, they need to figure out how to make it work. There was a period in my life when I found it hard to make a car payment, and my friends at GM offered me two choices...pay or loose the car.

    Realizing this would hurt our economy overall makes it difficult for me to make this choice, but at what point do we as tax payers stop making the rich richer...Had GM make better decisions over the last many years they would not be in such a delimma.

    I wonder how much they give to Nascar every year? Maybe those boys will chip in to keep GM running.

    February 18, 2009 at 5:37 pm |
  107. Byron Barone

    Yes I think the government should give the car companies more money it is only a lone Chrysler borrowed money during the Reagan era and payed it back in 3 years they will do it again. Our kids will not have to pay for a loan not like they will be paying for the war in Iraq for years to come.

    February 18, 2009 at 5:37 pm |
  108. josh

    it makes no sense to put 40 billion dollars into failing companies. these american car companies are producing cars that consumers do not want, and providing 40 billion dollars is not going to save them.
    the 40 billion dollars will not even cover their debt, and they are laying off thousands and thousands of workers anyway.

    if there were 40 billion dollars to invest into the american car industry, i would let these companies go bankrupt and invest into creating a new, fresh american car company that has the right attitude and goals for the company. we do not need GM or Chrysler or Ford to be the leaders of the american car industry.

    February 18, 2009 at 5:39 pm |
  109. Natalia, Albuquerque, NM

    Yes, as long as they are complying with the rules Congress set when they were given the first part of the money in December. So, in reality, they are not holding their hands out again, as the money has already been approved. Remember they were not given the full amount they wanted and had very strict rules applied, unlike the banks two months earlier.

    They were told, if they managed their companies better and showed they were complying with the changes Congress wanted, they would get the rest of it when needed. Remember, if they do not get the money, then all of those auto workers employed will join the ranks of the unemployed, which can have the potential for more home foreclosures, and on and on.

    February 18, 2009 at 5:39 pm |
  110. Jack from NH

    Jack,
    I already bought a crappy Chevy, what else do I need to do?

    February 18, 2009 at 5:40 pm |
  111. George in Pennsylvania

    No more money!!! Insurance companies won't cover you when you're old or ill. Why should taxpayers have to nursemaid terminally ill companies?

    February 18, 2009 at 5:41 pm |
  112. Steve

    Dear Jack,
    I think it is very important for the US to support General Motors and Ford which are public owned car companies. However, Chyrsler is NOT a public owned car company and I don't think tax dollars should be used to bail out a private owned corporation.

    February 18, 2009 at 5:41 pm |
  113. ron levine

    Enough is enough, Jack. They are not responsible for paying anything back to us, the taxpayers until 2012. Ig I was running my business, in this fashion where I just kept throwing money away without a real game plan, I would eventually have to declare chapter 11. their business acumen has been q estionable for some time and now it's time to turn the tap OFF.

    February 18, 2009 at 5:42 pm |
  114. RB from NH

    Instead of giving $20 Billion to the carmakers, you could give $10,000 to 2 million Americans towards a new car for the same price!

    February 18, 2009 at 5:43 pm |
  115. Burt, Denver CO

    I don't want to give them any more money, but given that the auto industry is one of the few in America that actually builds things, I think doing so would be preferable to NOT giving them any more.

    Redirect some from the financial institutions, they're apparently not using it.

    February 18, 2009 at 5:47 pm |
  116. Harold - KY

    Jack, how many loans do you make to an industry that seems to not listen to what you told them to do. They have submitted a plan but, it means cutting 45,000 jobs for GM and 3,000 for Chrysler. It still hasn't done what is needed and that is to tell the the UAW that they need to bring their compensation program in line with the average American. I'm sorry but until they address this I would close the pocketbook.

    February 18, 2009 at 5:48 pm |
  117. Dana D

    NO!!!! It appears that, if you put out a poor quality product and beg loud enough.....hmm?

    February 18, 2009 at 5:49 pm |
  118. Gustavo NYC

    Dear Jack: GM, and Chrysler proved that they can not manage their respective Companies. They are firing 47000 employees, and they will fire another 47000 or more before they come to ask for more money. So, let them go bankrupt because, what they are fighting is for their own salaries. The only the Congress will get is more excuses, and less money for the goverment to spend. If you ask my opinion these guys are trying to blackmail the Goverment .

    Thank You

    February 18, 2009 at 5:49 pm |
  119. John, Fayetteville, NY

    It's ridiculous but they will get the money for sure, our country is bleeding $1000 dollar bills by the second. The bailouts will represent hundreds of thousands of dollars per employee but we'll do it because this administration wants to help, even when they shouldn't, perception is key in getting re-elected in 2012. If I were a GM Manager I would look at the Federal Government as a meal ticket myself, I'd take just a few million and put it somewhere where they'd never find it, file for bankruptcy, move to some warm nation and live happily ever after. And, I'm willing to bet, someone has thought of that at GM.

    The question is not up to the American People any longer, no one wanted the other bailouts but they happened, and there will be much more that your Senators and Representatives will cast their votes for, regardless of what their constituents say........this Government is not for the people.......the people are just needed for revenue for the Government.

    February 18, 2009 at 5:50 pm |