Obama Wants New National Car Czar to Oversee US Auto Industry

Discussion in 'OT Driven' started by TriShield, Nov 12, 2008.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    General Motors? Get ready for Obama's Government Motors.

    This goes for Ford and Chrysler too.

    Obama wants auto industry reformer

    By CARRIE BUDOFF BROWN | 11/11/08 1:24 PM EST

    President-elect Barack Obama wants a high-profile point person to oversee reforms in the ailing auto industry, according to members of Obama’s transition team.

    Specifics about the proposal remain unclear. But the transition team says Obama suggested to President Bush on Monday that aid to the auto industry could be coupled with the appointment of “someone in charge of the auto issue who would have the authority” to push for reforms. The details came from a more extended readout of the White House meeting provided Tuesday.

    The person would assist in efforts to create an “economically viable auto industry,” a transition aide said – a move that could alleviate concerns about protecting taxpayer interests if more money is directed to assist automakers.

    The financially reeling American auto industry has emerged as a top issue facing Obama and Bush as they work through the two-month transition period, and for Congress as it plans to convene next week for a lame duck session.

    Automakers have asked for up to $25 billion in emergency loans in order to keep the industry from collapsing amid slumping sales. General Motors, the biggest U.S. automaker, reported a $4.2 billion operating loss last quarter and has warned that it may run out of cash by the end of June. Ford Motor Co. reported a nearly $3 billion for the quarter.

    White House spokesman Tony Fratto said Tuesday that Bush was open to considering proposals to accelerate loans from $25 billion funds that have already been appropriated through a recent law aimed at helping automakers retool their business.

    "We're open to ideas from Congress to accelerate funds they've already appropriated in the auto loan program – as long as funding will continue to go to viable firms and with strong taxpayer protections," Fratto said.

    House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter Saturday to Treasury Secretary Henry Paulson asking that the administration consider tapping another source of funds: the $700 billion bailout to include car companies.

    Obama used his meeting Monday with Bush to call for auto assistance, “including accelerating the $25 billion Congress already passed, exploring other authorities that exist under current law,” the transition team said.

    Obama also pressed for passage of a second economic stimulus package, while Bush “raised the need” to pass the Columbian free trade agreement, the transition team said.

    Obama’s newly appointed chief of staff Rahm Emanuel suggested Sunday that the president elect wasn’t interested in a deal to remove White House opposition to a stimulus package in exchange for congressional approval of the trade agreement, which has been opposed by unions and some Democrats.

    White House press secretary Dana Perino said Tuesday that Bush did not link support for a stimulus package or auto industry aid to passage of the trade agreement.

    “In no way did the president suggest that there was a quid pro quo,” said Perino. But Bush did, she said, “talk about the merits of free trade.”

    [​IMG]

    Senator Carl Levin’s (D-MI) Letter To Treasury Secretary Henry Paulson

    Dear Secretary Paulson:

    We are writing to urge you in the strongest possible terms to use your authority under the Emergency Economic Stabilization Act (EESA) or other statutes to immediately address a significant and systemic threat to the U.S. economy and provide emergency assistance to the domestic automobile industry.

    The U.S. auto industry represents almost four percent of U.S. gross domestic product and represents ten percent of U.S. industrial production by value. One out of every 10 U.S. jobs is auto-related. General Motors, Ford and Chrysler account for roughly 70 percent of U.S. auto production and are estimated to support around five million jobs across all 50 states. According to a report released last week by the Center for Automotive Research, the failure of even one US automaker would mean the loss of millions of jobs and cost our economy hundreds of billions of dollars. Inaction is not an option

    These last years have seen the domestic automakers pursue an unprecedented restructuring that has put them in a very competitive position with respect to product quality (Ford has tied Toyota and Honda in quality according to Consumer Reports), fuel efficiency (GM offers 17 models achieving 30 MPG or better - twice the nearest competitor), and advanced technology vehicles (Chrysler has announced the launch of electric vehicles beginning in 2010 and all three companies have extensive hybrid offerings).

    In addition, the three domestic automakers spend a combined $12 billion annually on research and development. This R&D capacity is a national asset that would be put at risk if we do not restore the health of our auto industry.

    This vital role that the domestic auto industry plays in our economy is broadly recognized. Congressional Leaders in both the House and Senate have met with representatives of the industry and its workers at the most senior level and have expressed to you that A healthy automobile manufacturing sector is essential to the restoration of financial market stability, the overall health of our economy, and the livelihood of the automobile sector’s workforce.

    On Friday, President-elect Obama said, The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil… I have made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars
    here in the United States of America… I’ve asked my team to explore what we can do under current law and whether additional legislation will be needed for this purpose.

    As you know, both General Motors and Ford released 3rd Quarter earnings last week that make clear the severity of the strain the auto industry is experiencing. It is our view that providing emergency assistance to this uniquely important industry, which is struggling to meet the challenge of a severe financial crisis that has spread far beyond Wall Street, is consistent with the authority granted to you by EESA, and indeed well within the broad mandate of the Treasury Department to promote stable economic growth.

    Given the urgency of the situation, we ask that you work with us in the coming days to provide immediate loan support to the domestic auto industry, including, if necessary, amending EESA.

    Sincerely,

    Senator Carl Levin

    Nancy Pelosi and Henry Reid's Letter To Treasury Secretary Henry Paulson

    Dear Secretary Paulson:

    We are writing to request that you review the feasibility of invoking the authority Congress provided you under the Emergency Economic Stabilization Act of 2008 (EESA) for the purpose of providing temporary assistance to the automobile industry during the current financial crisis. Under EESA, Congress granted you broad discretion to purchase, or make commitments to purchase, financial instruments you determine necessary to restore financial market stability. A healthy automobile manufacturing sector is essential to the restoration of financial market stability, the overall health of our economy, and the livelihood of the automobile sector’s workforce.

    The economic downturn and the crisis in our financial markets further imperiled our domestic automobile industry and its workforce. On Thursday, we separately met with the leaders of the automobile industry, and its top union representative, to discuss the financial challenges confronting the industry and its workforce, and possible actions to address these challenges. We left the meetings convinced that our nation’s automobile industry - the heart of our manufacturing sector - and the jobs of tens of thousands of American workers are at risk. Friday’s news of the automobile industry’s record low sales figures only reaffirm the need for urgent action.

    Were you to determine that the automobile industry is eligible for assistance under EESA, we would urge you to impose strong conditions on such assistance in order to protect taxpayers and maximize the potential for the industry’s recovery. An automobile industry that is forward-looking and focused on ingenuity, competitiveness, and the creation of green jobs for the future is essential to its long-term viability. Other taxpayer protections should mirror those required of financial institutions currently participating in the Troubled Assets Relief Program (TARP), such as limits on executive compensation and equity stakes to provide taxpayers a return on their investment upon the industry’s recovery. Any assistance to the automobile industry should reflect the principles contained in EESA that guard against the need to recoup costs to the taxpayers.

    We must safeguard the interests of American taxpayers, protect the hundreds of thousands of automobile workers and retirees, stop the erosion of our manufacturing base, and bolster our economy. It is our hope that the actions that Congress has taken, and that the Administration may take, will restore the preeminence of our domestic manufacturing industry so that it can emerge as a global, competitive leader in fuel efficiency and in new and path-breaking energy-efficient technologies that protect our environment. We appreciate your serious consideration of this request, and look forward to your response.

    Best regards,

    NANCY PELOSI
    Speaker of the House

    HARRY REID
    Senate Majority Leader

    http://elections.foxnews.com/2008/1...egation-paulson-requesting-auto-industry-aid/
     
  2. TopGun113

    TopGun113 Winning

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  3. He Mad

    He Mad OT Supporter

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    fucking wow.
     
  4. KGB ate my bread

    KGB ate my bread Made you look. OT Supporter

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  5. Bona Fide

    Bona Fide Guest

    wall of text

    i was expecting some bolding
     
  6. The Great Deceiver

    The Great Deceiver 21st Century Schizoid Man

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    You are not Trishield
     
  7. Emfuser

    Emfuser Nuclear Moderator Super Moderator

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    Nothing like government interference to drive prices up and quality down.
     
  8. upparoom

    upparoom OT Supporter

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    thats exactly what we need, another government pawn who thinks he knows more than anyone else about an industry he's never participated in


    Change and Hope motherfucker! :bowdown:
     
  9. Bona Fide

    Bona Fide Guest

    Nothing like a recession to drive auto companies out of business. :eek3:
     
  10. FryingPan

    FryingPan Certified Thread Killer

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  11. Keith Moons Liver

    Keith Moons Liver Active Member

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    US automaker quality can't go any lower.
     
  12. Buzz Killington

    Buzz Killington nunc fortunatus sum

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    Sweet, a drug czar and now a car czar. I want to be the czar czar so I can oversee both of them.
     
  13. wait*what

    wait*what OT Supporter

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  14. KGB ate my bread

    KGB ate my bread Made you look. OT Supporter

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    who needs experience these days? look at who got fucking elected for president :rofl: :ugh:
     
  15. The Great Deceiver

    The Great Deceiver 21st Century Schizoid Man

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  16. TriShield

    TriShield Super Moderator® Super Moderator

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    Cliffs

    Big Three + UAW + Democrat bailout + US government stake in companies = mother of all failures.

    But those of you who think government could run the healthcare industry just fine should love it.
     
    Last edited: Nov 12, 2008
  17. JordanClarkson

    JordanClarkson OT Supporter

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    Socialism FTMFW
     
  18. Yardsale

    Yardsale OT Supporter

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    so you plead to get bailed out because you ran your shitty companies into the ground then you cry about being controlled by the government? LULS
     
  19. Emfuser

    Emfuser Nuclear Moderator Super Moderator

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    Were you around during the 80s? :hsugh:
     
  20. Meat Popsicle

    Meat Popsicle What's that smell? OT Supporter

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    I hope this isn't surprising to anyone....
     
  21. well they went running to the government for help, this is to be expected.

    it's their fault to begin with.
     
  22. TankRizzo

    TankRizzo Sensational Moderator Super Moderator

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    put the industry on life support, drag this bullshit out another decade or so and then we'll deal with it all over again, yay.
     
  23. The Great Deceiver

    The Great Deceiver 21st Century Schizoid Man

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    available also in station wagon
    [​IMG]
     
  24. yeah what the fuck, Trishield and the rest wrer on here bitching how they needed this bail out and now he cries communism.




    WHAT THE FUCK
     
  25. I love those cars, they were complete shit. But had a lot of charm
     

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