Senator Corker Cozying Up To An Auto Bailout

14 Responses to “Senator Corker Cozying Up To An Auto Bailout”

1. jen writes
   December 3rd, 2008 9:18 pm

   The fundamental flaw in Corker’s bankruptcy plan is that no one will buy a car from a bankrupt company. The latest survey said that 80% of consumers absolutely would not do it and who can blame them? A new car is typically the second largest investment the average American home-owner will ever make and usually the single largest investment for those who rent. Who in their right mind is going to invest that much money in a company that isn’t guaranteed to be around tomorrow to (1) service your car normally (2)supply parts (3) honor your warranty (4) make sure there are trained mechanics and equipment out there to work on it with all the dealerships that are scheduled to close up?

   Also, in between the various whines and deserved castigations of Detroit for not adapting quickly enough to changing conditions, let’s not forget that Japan (along with many other nations) subsidizes their auto-industry. With Japan, the stated goal was to use Japan’s government to show us Americans how it’s done. They set out to topple us and have been backed up by the full force of the Japanese Govt and Japanese taxpayers in their efforts.

   However, even with that subsidization Japan could not have competed had the US implemented Single-Payer Insurance that would’ve freed US companies from one of their largest competitive burdens, lowered insurance costs across the board, increased worker productivity in every American industry, and generally made our entire economy more competitive and attractive. The list could go on but it’s quite frankly amazing that Detroit has remained competitive and atop of the field for so long given the fact that other countries not only directly subsidize their auto-industries but also have single payer health care.

   Imagine how successful the American Auto Industry would be, how much money would flow into the US, how many good jobs would be available, how many local and state governments would benefit and thrive had Detroit had the same competitive advantages that the Japanese and Europeans auto-makers enjoy.

2. Bristol Tennessee writes
   December 4th, 2008 12:53 am

   Senator Corker shouldnt have been in New York discussing anything with anyone about auto bailouts. He’s panhandling for special interest supporters down the line- business as usual again- What are they discussing- techniques refined by the Tennessee Republican party in corruption,deception, and manipulation to fool the committee into giving the auto industry a blank check like the banking industry. I live in Tennessee, I see and Live their corruption and good ole story telling skills, and New York should have put him back on the plane- Coach seating- and told him “Repair your house before you start offering assistance in Ours” and believe me the auto industry is in enough trouble without taking on any allegiances and hand holding with a state of dispictable “Leaders” that have consumed the state of Tennessee and made it a country of its own- apparently exempt from the laws of the United States or any written within the state of Tennessee-

   Senator Corker, start researching and investigating what’s happening in your own “World”, this separate country from the United States and either unify it back as part of the United States or let people know before coming to Tennessee that it has no set laws be it state or federal except for those at the moment of those in the power seat. And take that dusty document called the Tennessee Constitution- and either read it and enforce it or burn it, because presently this state and the Republican party has nullified every essence of it.

3. volvoice writes
   December 4th, 2008 8:16 am

   Single-payer insurance? no thanks, it would quickly become just like social security and medicare. A box full of IOU’s waiting for someone to pay…eventually…somewhere down the line…..

4. Fred Vail writes
   December 4th, 2008 10:03 am

   Detroit is not going to fail. It will not happen. It’s all about ‘politics’ and Detroit and Washington have been in bed together for nearly a century. If a bailout goes ‘hand in hand’ with a wage concession from the UAW–who drive up the prices of cars by several thousand dollars per vehicle–then I’ll go along with it as it will save millions of jobs and keep families solvent. But if ‘big labor’ sits on their hands, then the union workers deserve their own fate.

   I have never bought a foreign car in my life, nor do I intend to. I’ve probably lost money by that philosophy–as imports have often been far better deals over the corse of the last 47 years since I purchased my first vehicle, used ‘51 Chevy, in 1962–but I prefer to be a ‘loyal’ American.

   There seems to be no loyalty anymore and that includes loyalty to the Judao-Christian values that this country was founded upon. Washington, Jefferson and Adams must be turning over in their graves with the current state of affairs we find ourselves in.

   While most speak of a ‘massive’ overhaul of the economy, what we really need is a ‘massive’ overhaul of Congress. No ‘bailouts’ for the rascals, just pink slips!

5. Canadian Dude writes
   December 4th, 2008 2:20 pm

   I knew absolutely nothing about Mr. Corker before today. I’m a canadian who has been watching and following this economic situation quite closely. Do you people actually watch these bail out talks? or do you just fall into BS partisan politics like “Bristol Tennessee” and complain about stuff ignorantly.

   If you guys were paying attention you would have noticed that your hated Mr. Corker is the only guy making any sense and fighting against this bail out. And he’s doing so with intelligence and facts. He DESTROYED Chryslers claim for money today and even their CEO obviously had no response. The problem is in the US you will not hear about this in the news. You will on the other hand, hear about the Protests they had in Dec 4th talk. I guarantee that.

   Here’s the gist of what he confronted the Chrysler CEO with:

   What should hold weight is the Bob Corker Tennessee Senator who confronted Chrysler CEO about how his company has no other exit plan other than to get bought out and sold for their network of dealerships.

   He made some other good points. Cerberus bought an 80% stake in Chrysler essentially for their financing network. The car stuff was just a bonus. Cerberus has 24 Billion in capital, but is unwilling to give Chrysler any money because they want them to fail and be bought. Cerberus board member told this directly to Corker.

   You have the primary stake holder of Chrysler who will not give them any cash to survive…they want them to fail and be bought.

   Chrysler has stopped R&D. Chrysler does not have any technologies to compete. Chrysler does not want to be a stand alone company. They want to get bought, but they want to hold out for a good price and they want to do this using the tax payers money.

   Let them fail, price drop and be bought up. The US is a capitalist country right? This is how it’s supposed to work. Let Ford or someone else buy them. Chrysler is dead weight.

6. gabe writes
   December 6th, 2008 12:23 am

   I too had never heard about Senator Corker of Tennessee before his Dec 4th discussion on TV when interrogating the CEO’ of the big three car companies and the President of ther UAW.

   If the CEO’s were paying attention, they all should do exactly what Corker layed out.

   He pinpointed the problems and essentially said that the Big Three should consolidate in to one or two carmakers and go into voluntary bankruptcy (like Ch 11) only better, because they would be backed by the US Government.

   However the money would only come after certain stipulations as laid out by Corker would take place.
   His plan would solve the onerous union contract problems, the consolidation of debt by renegotiating the debt by guaranteeing payback at a rate of 30 cents on the dollar and then making other changes as Corker outlined.

   Corker’s proposal was stunning. I said to myself as I watched “who is this guy?” He makes total sense and his proposal is a win win situation for Unions, management, consumers, workers and the USA.

   I looked for reaction to his plan and heard nothing on TV or radio or other media.

   What is going on? This is the carmakers best hope.

   They should embrace this like a life raft in a rocky sea.

7. gabe writes
   December 6th, 2008 12:32 am

   Oh and by the way. Partisanship on this and other issues need to stop. This is a lose lose situation for everyone.

   Also those that say they wouldn’t buy a car from a car in bankruptcy ask the question this way.
   Would you buy a car from a company that is being bailed out by the government on the verge of bankruptcy and with no viable plan that would guarantee solvency or would you buy from a company that has migated their union problems, their financial debt problems, management etc and is backed fully by the US Government that will guarantee that it will not fail?

8. Bob writes
   December 6th, 2008 12:59 pm

   Bob Corker was a union retirement coordinator and he forgot his roots! The GM plant in his own backyard supports an entire community and gave thousands of jobs to the poverty stricken community. Did he forget all of this once they elected him? Bob just blames the line workers who have no say as to what cars and what designs go to the dealers. Bob is also complaining about the $20 an hour the senior workers make and the $14 an hour all new employees make. Get real Bob, who wants to get carpal tunnel and only get paid minimum wage!

9. Donnie B. writes
   December 6th, 2008 1:04 pm

   I can’t agree with you more. I have a friend that works at Nissan (35 miles away from the GM plant in TN) and they make the same as the GM workers and no one talks about that! The new workers at GM make less than the new workers at Nissan, but Bob won’t talk about that. The bottom line is Bob is anti-union. Tennessee is a right to work state and no one forces you to join a union.

10. Mary Sue writes
    December 6th, 2008 1:09 pm

    I worked at Delphi in Alabama and couldn’t take it. Working on the assembly line is very hard work. My back was wore out after three years and I had to quit. God bless anyone that has to destroy their body working on an assembly line to support their family.

11. Tom Paine writes
    December 6th, 2008 5:42 pm

    You know, I’ve so enjoyed watching members of Congress express SUCH outrage at the idea of LOANS for the Big Three, while they sat in such mute silence when the concept of a bailout for the financial industry was debated in Washington.

    Its so much simpler to whine about the destructive power of labor unions than the destructive power of undeserved bonuses on Wall Street.

    With that in mind, here’s the transcript of Jon Stewart’s commentary on the Daily Show Thursday night:

    Now, Congress, I think I know what this is all about.

    You gave the financial industry $700 billion dollars and you may not give the auto industry $35 billion dollars because you don’t really know what the finance industry does, do you? So, you gave them the money because you didn’t want to look stupid. See, here’s the problem. The auto industry has a product that is tangible, that is easy to complain about. See, I should know. Let me show you something, you see, my first car, this is true, was an AMC Gremlin. It’s a car that existed so Pinto drivers would have something to #@$!%& on. But it got me from here to there and while I was doing it, it preserved my virginity along the way.

    That’s the thing about cars, even the crappy ones are useful. But you won’t bail out the people who make cars, you’ll bail out the people who make car loans, no, no, no, not even car loans. The people you bailed out make derivative paper transfers speculating on the future value of enormous groupings of said loans to China. Fine. Detroit’s business model is bad. We know they lose $2,000 for every car they sell. Wall Street lost $7 trillion dollars without selling ANYTHING! At least, when Detroit loses money, we get CARS! So, GIVE THEM THE MONEY! By the way, if you see my Gremlin, tell her I ended up getting laid when I got a Mustang.

12. Donna Locke writes
    December 6th, 2008 10:24 pm

    Bob, are you referring to the Saturn-GM plant in Spring Hill? If so, you are misleading people. Maury County was not poverty stricken but prosperous before Saturn came here — we had wonderful farms, a valuable supply of phospate, a number of chemical plants, and clothing factories. Gone now, of course, and going when GM came here. For a long, long time, Maury County was a leading producer of food for this entire nation. When I attended the main high school here then, it was considered one of the best high schools in the state. Not any more!!

    As for the jobs, though some locals were hired, the GM jobs were given overwhelmingly to transplants brought here from other GM facilities — one of several promises broken by GM to Maury Countians. The people who really made a killing in this county were those transplants and land speculators, developers, real estate agents, etc., many of whom moved here to suck us dry, didn’t give a flip about this place so many of us have loved for generations, and callously destroyed farmland and quality of life while insulting us.

    But don’t get me started.

13. Donna Locke writes
    December 6th, 2008 10:26 pm

    Meant “phosphate.”

14. Bristol Tennessee writes
    December 7th, 2008 11:32 am

    In response to Canadian Dude, my suggestion, move here, find out first hand how Tennessee Politicians speak out of both sides of their mouth and just like their story telling skills- they may lead you to believe its the truth but it never is, just an expression of reason before they twist all reality of the story. Senator Corker absolutely knows both sides of the dilemna and the consequences to both. Obviously just as they do, he knows the right answers, but implementation of any of those suggestions is what goes astray- that old saying you can lead a horse to water but you cant make him drink, applies to this situation- you can say and do all the right things but if that horse refuses- you let it fend for it’s self. Senator Corker can propose solutions- which I personally dont find as solutions but a method to get the dollars now, and prop himself as against the bailout, but he’s for the bailout. He believes that the fall of the big 3 auto industry is doomsday- but it isnt. This country has evolved through many types of industry and business’ that have collapsed under their own weight or outlived their supremacy. The automobile sector is there. It is ridiculous to even consider giving any bailout monies to any of them- their using the union workers as both a threat and an allie in this plea of theirs to both tear the UAW down and to provide fear of mass unemployment to the public sector. Big business shouldnt be treated or handed out anything differently than any other business in the United States suffering from this economic recession. Who is going to go to the white house in plea for the small business’ as they fold and file bankruptcy? Small business’ employ more citizens as a statistical fact then all 3 of the auto, so is there a true doomsday here for American citizens, and just where will it really come from?