Emanuel urges aid for auto industry

Rahm Emanuel, chief of staff for President-elect Barack Obama, is calling for faster and bigger aid for US auto makers.

Nice. Campaign on increasing taxes on the rich and redistributing wealth to the poor. Talk about increased corporate taxes and additional taxation on “windfall” profits, then propose bailing out industries who have done everything they can think of to wreck themselves over the past four decades.

Part of the problem with taking on the “tax the rich to give to the poor” issue is that critics can so easily be made to look like they don’t care about the poor. Then you toss up a picture of a sad-looking kid and suddenly anyone who doesn’t want more taxes for wealthy people is a monster.

However, doesn’t a lot of that steam evaporates when we’re talking about corporations? It seems to me that even bleeding heart types shouldn’t have a problem with letting terribly-managed companies who build things few people want suffer a bit. Or even a lot. Yes, you come back to the individual workers who will be caught in the middle, but there are a lot of Americans building cars for companies that make money. Besides the nationality of the company, is there any difference?

Oh. The union.

That sure explains an awful lot.

As a Michigan resident, I sure wouldn’t mind seeing the Big Three recovering a bit. And I’ll admit that if aid money comes from the already-passed $700 billion deal, I won’t be nearly so critical as I would be of additional aid money on top of the existing bad deal.

But these plans to penalize the successful in order to raise cash to reward the failures are obvious losers.


  1. Very good commentary on that car maker bailout here:


    “For years GM and Ford have produced a product that consumers do not value as much as the product provided by their competitors. Rather than changing their products or business model, they instead spent small fortunes on lobbyists. If the government does bail out GM, rest assured that this will not be the last time. But even if the government gives GM a check every week, there will come a time when no amount of government money will be enough to save them.”

  2. It’s a joke!

    Even the Japanese or other car making countries know that there really is not a lengthy future in petrol cars!

    How about we give this money to at least someone like Tesla motors! At least they have made a possibly future-in-mind product.

    Is there any point? I think it’s a sure way to ensure that the US taxpayer loses money!

  3. “And I’ll admit that if aid money comes from the already-passed $700 million deal,”

    Dude, that’s $700 BILLION not million!

  4. American idealism in domestic cars as being big fast and full of luxury has screwed the big three over, the market angle that they carried in the 50s 60s and 70s set a double standard on american cars, when the gas crisis hit in the 70s, american automakers responded with smaller cars, such as the pinto and other peices of crap, every american regurgitated them back, the steady market of small gas efficient cars the foreign market mostly held in the sixties allowed them to skate paste scrutiny of being too small because, it was kind of like, its foriegn. so american economic cars were considered subpar because of the infatuated idea of american cars all being 225’s in someway. who the hell knows how this interpretation lasted through the rest of the century, especially when the only cars in the 80’s and early 90’s that flew past 85MPH were vettes mustangs trans ams and euro exotics. this false product interpretation led to over pruduction during sale decline and falsified image of quality. effectively every new car lasts like at least 400k unless its a sports car, my fathers 92 explorer recently died, the milometer broke at 452k two years ago. in fact the german engineers at volkswagen have the most controversial quality control issues in europe, shoddy windshield, broken temp controllers, even deffective master cylinders. American decline in the automotive industry is effectively due to failing market expectations they themselves created, causing mass overproduction(oldsmobile,buick Chrysler,) and poor image of quality or falsified image of quality(toyata,VW,Ford) Im not even talking about the 90’s electric car fiasco, effectively its the big threes own fault because their slow jackasses prolonging the inevitable like Alan Greenspan

  5. for the love of god let the idiots fail for once, is public school turning into real life? or am I just to young? or too conservative for an independent that likes Obama to understand the world economy?

  6. I love it, everyone is missing the real point of bailing out GM/Ford, they are not doing it for the companies they are doing it for the union, if GM/Ford goes bankrupt they can get rid of the pensions and contracts with the union. They never mention the Honda’s/Toyota/Mitsubishi cars made in the states, Toyota was/is going to open a Prius plant in the US.

    “such as the pinto and other pieces of crap, ” I guess you can’t remember when the Japanese cars first came to the states, they made those us cars look good, when then needed parts it took months to get them. The US auto makers haven’t really learned the lessons the Japanese did.

  7. I said the foreign market didnt receive market loss on american ideas on automotive consumerism, no one cared the mazda was a heap, it was cheaper and less costly and you didn’t ever expect it to be anything more, manufacturers capatlized on the standard and increased their quality of vehicles, DURING the gas crisis when people wanted a less costly efficient car. everyone wanted pintos gremlins and corvairs to be more than they were, so we hated them and went to the shitty foreign cars that were no better, but no one cared that THEY were crap because they had no preassumption of greatness from toyotas and bugs, unions and assimulated markets of foreign competetive companies dont cause company failure

  8. I guess is didn’t emphasis my point – the point was Japanese/foreign cars learned from their mistakes an instituted quality control even on their “cheap” cars, something the US automakers still have to do.

  9. after nearly going bankrupt back in the eighties because of the exact same thing (almost) that is happening now, I can’t have any sympathy for the corporations that have consistently turned out cars that are inferior in quality to often cheaper cars of foreign origin, and never took the inevitable future into account.

    I still remember the SNL skit where they introduced the Chameleon, a sh** rod rustbucket on the outside, luxury on the inside. They did the old marble running down the body panel seam, and it falls into a rust hole. That image of domestic car quality is probably pretty untrue today, or at least a lot less true. But years and years of reputation for poor quality will catch up to you sooner or later. And when for a similar or even less amount of money I can go buy a Toyota that has so far run seventy thousand miles with nothing but scheduled maintenance, why would I buy the American car? My boss has a brand new fifty thousand dollar Ford Big MoFo Truck, and he has taken it to the dealer for some little problem or another at least five times in the last year. His driver’s side door mat wore out, and they want him to buy all three new floor mats, can’t sell him just the left side front one.

    The big US auto manufacturers are victims of nothing more than their own ineptitude. Everyone in the world saw the writing on the wall before this most recent gas crunch. Someday, sooner or later, petrol was going to become expensive. And when that day came, the company with the best fall back lineup of cars was going to come out on top. But they instead concentrated on the SUV/truck market, where they could cater to American’s love of everything big, again. But that is overspecialization, and its just as risky in that industry as it is in investing or anything else.

    So in short, like they say at Wu Tang financial: You got to diversify your bonds, nigah.

  10. While quality was certainly an issue through the 70s and much of the 80s, my last two American rides (’94 Firebird & ’98 Camaro) were really good cars. I had no trouble to speak of with them, they were tight and didn’t rattle, and were terrific performance bargains (not much of a selling poitn nowadays!). The single problem I had with each were promptly dealt with by my local dealers via warranty. BTW: I got 26 highway mpg @ 70 mph with the LT1 V8 in the Firebird and 27 mpg @ 70 mph with the LS1 in the Camaro (wished I’d held onto the Camaro!).

    While I agree completely with Naderbus on SUV/truck issue; a large part of that goes back to US consumers who voluntarily bought those by the bucket loads until early this year.

    Bailout? Sucks @$$………just like all the others that were enacted earlier this year to no apparent avail so far. While I expect this type of socialist/nationalisation crap from the Dems, the large number of Repubs who went along with these extravagant wastes of taxpayer resources have cause me to lose all respect for their party (I’ve voted Repub in every election since ’72).

    Between mopping up the floor with the Repubs in the election (thanks George!), and getting so many to sign onto the long deferred Demo agenda for the US……..Comrades Pelosi and crew much be laughing themselves to sleep every night while listening to Papa Roach’s “Getting Away With Murder”. 🙁

  11. On FOX News as I write……..AIG busted again for Execs partying at some luxury hotel, after just receiving another 40 billion in bail out funds. Hotel staff instructed to NOT post any visible signs (welcome AIG etc) of the shindig, and AIG exec releases BS statement about them just trying to keep a low profile (leaving out the “during inappropriate cynical activity” part) because some of their staff have been harrassed!

    Not enough apparently! Damn! Sure wish I could figure out how to get my hand in the till! How about all you guys sending Flanker some cash cause I’m really on rocks, sniff, sniff, wheeze! 🙁

  12. Of course, the Obamanoids want to bail out the Big 3, while at the same time talking about using an Executive Order to block offshore drilling again. Which will help push the price of oil back up again, thus putting the screws to them.

    Oh, and Rep. Waxman is trying to oust Detroit’s guardian angel, John Dingell, from the chair of the Energy & Commerce committee. Increased CAFE standards are high on Waxman’s To Do list, and I’m sure carbon taxes are on there, as well. Both of which will hit the Big 3 hard.

    That’s some serious cross purposes, right there.

  13. Like I ALREADY STATED 3 EFFING COMMENTS AGO, quality control is just equal,except for VW and not previously said SAAB(bad transmissions), the statement of japanese quality being better than american quality on economy cars has been false ever since the 90’s with stuff like Ford Escorts and Tempos, idoitic preassumtoions and false claims are brainwashing everyone into marketed ideas on each car manufacturers problem like I ALREADY SAID

  14. poor quality in american automtives is a thing of the 50’s 60’s and late 70’s, foreign quality, except of course german cars other than VW, raised itself up during the late 80’s, there isnt a shitty mass market car past ’85 anywhere in the world besides Ford Contour that doesn’t at least get a life of 150k accident free

  15. we should give GM drugs instead of money next tome they ask for tax cuts or tax money they barely even pay, then the drug industry will fail and collapse in on itself, freeing up prisons and tax money from criminal instutions, but what we didn’t give them and the taxes spent on the war on drugs,ROFL

  16. U.S. cars of today or even the last fifteen years compared to their counterparts of a quarter century ago or more is no comparison. The quality is vastly higher, and they trend so close with Japanese overall quality that its not that big of a difference. But I still remember seeing a graph in Consumer Reports years ago that showed, on an overall aggregated basis, U.S. cars were more likely to have problems than their Japanese counterparts. The difference was huge in the late eighties to early nineties, IIRC, and diminished greatly to today. But much of that was due to the competition of the Japanese, and the introduction of robotics that the unions fought tooth and nail. If we lived in a close economy like some of the Ron Pauls of the world seem to think would be great, we’d be stuck with what the U.S. auto makers deemed “good enough.” And before they started getting stiff competition, that really sucked.

  17. Also, anecdotal experiences don’t really count. Surely there are people that have bought a Toyota or Honda lemon, that never ran right and cost them too much money. And surely Ford and Chevy have turned out plenty of vehicles that have run hundreds of thousands of miles with no problems. Its the statistical averages that count in a debate like this. That difference might not be much these days, but that bad taste lingers, and even there, the big 3 have done little to advertise and campaign against that impression. The coal industry realizes they have to advertise to keep their image from going too far south, as dose the petroleum industry. But Ford doesn’t seem to mind too much that a lot of Americans still think their product is junk.

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