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Dear oh dear. Now that The Big 2.8 have slashed their advertising budgets, now that the Congress has their CEOs in their sights, the MSM news nets have grown a pair. In today’s House action (Eddy’s on the bridge), a few pols have poked and prodded Detroit’s opposition to state emissions laws and federal corporate average fuel economy (CAFE) standards. But it’s nothing compared to this slam at Motown’s lobbying efforts. “Nobody is placing bets on whether Congress will end up giving the car companies a bailout. But if investments in Washington politicians count as leverage, then the auto industry has plenty of clout.” Iron fist in a velvet glove? The times they are a changin’.
10 Comments on “Bailout Watch 256: CBS Attacks American Auto Industry...”
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So is this biting the hand the used to feed you?
Unlike the Chrysler Bailout back in the day there is now a significant contingent of Southern states with non-UAW factories who are calling BS! on the $ grab from the old guard oligopoly.
In the congressman’s defense, his shares and stock options that were worth 1.3mn in May are today probably worth just enough to buy him lunch…
Regarding Southern states and BS, I have to call out Alabama’s Senator Shelby. He has been a fountain of hypocricy and misinformation during the hearings.
Shelby is taking the stand that government should not subsidize manufacturing, but he did not fight the billions that his home state spent to attract foreign automakers to Alabama. Alabama gave those foreign companies about $175,000 per job created. Detroit is asking for about the same amount per job preserved. But, unlike Alabama’s automakers, Detroit will pay it back.
This week he spouted off again, claiming that Detroit can’t compete in productivity and quality. I submit the Chevy Malibu as evidence that Detroit can be competitive, even with Alabama. The 2008 Harbour Report, comparing labor hours per vehicle, ranks GM’s UAW plant that builds Malibus ahead of Hyundai’s non-union plant in Alabama that builds Sonatas. Consumer Reports recommends the Malibu and the Sonata, both with above-average reliability. And JD Power crowned the Malibu as the best mid-size sedan in initial quality, better than the Sonata (and better than Camry or Accord).
Senator Shelby should excuse himself from any further discussion on Detroit’s rescue package. He would like to see Detroit dissapear, with Alabama positioned to benefit by filling the void (after the ensuing deep recession ends and people can afford to buy cars again). And he keeps rehearsing conventional wisdom about the Detroit of 20 years ago, while ignoring the facts of today’s emergency.
I would like to see a TTAC article exposing The Truth About [conflict-of-interest in Washington DC regarding manufacturing] Cars.
I guess that the banking industry and toytahondanissan does not get involved with lobbying at all.
Hank’s boys dishing out the $$$ to the banks have no ties to Goldman, the only surviving IB left.
By the way I wonder who has, Chuck S D-NY, in their pocket? He did not ride the banks that hard when they wend to DC cup in hand.
I guess the auto execs were running in the wrong circles, they should have buddied up with Hank’s crew this summer.
njoneer, that’s precisely ONE car that GM makes that doesn’t suck. How about the small cars? We all get to try them out at the rental counter, so it’s going to be hard to hide them…
njoneer – “I submit the Chevy Malibu as evidence that Detroit can be competitive”
All the awards in the world matter not if no one is buying them. I for one will not go back to GM after the experiences I have had with other “highly rated” GM vehicles.
My favorite from todays hearings goes to Ron Gettelfinger for his unending wisdom. “People wont buy a vehicle from a company going bankrupt.” Hey Ron, people didnt buy your vehicles before. Thats WHY you’re discussing bankruptcy. Nimrod.
The vehicles mentioned below may not be Best-In-Class but I wouldn’t say any of them ‘Suck’…these seem pretty competent.
Malibu doesn’t Suck.
Saturn Aura doesn’t Suck.
Saab 9-3 and 9-5 don’t Suck.
Opel Insignia for 2009 doesn’t Suck..You said GM, you didn’t say GMNA…it’s STILL a GM vehicle.
Cadillac CTS doesn’t Suck. (Even Top-Gear likes the V-version and they’re very critical)
Pontiac G8 doesn’t Suck. Drive it…then go drive an Accord-Camry-Sonata bland-mobile for about the same price-especially with current incentives.
The new Buick Invicta will probably not Suck.
FS-Trucks Don’t Suck.
FS-SUVs don’t Suck.
Traverse-Acadia-Outlook-Enclave don’t Suck.
Corvette doesn’t Suck. ZR1 is far from Sucking.
Camaro doesn’t Suck. Yes I’ve driven it-No I don’t work at GM.
njoneer,
As long as it’s legal, the people of Alabama are perfectly free to throw money away to attract jobs. Michigan could also bail out Detroit. There really is not so much hypocricy here.
I would like ALL these subsidies to have to be federal, or better yet, illegal.
As for Ron G and his promises of concessions, let’s see them in writing, and then we will discuss whether they are worthy.
Stu Sidoti
Heh heh, that was gonna be the thrust of my ad campaign when I worked for ATT. ” Hi, we’re ATT, we dont suck as bad as the competition”
Instead, they gave me the axe back in ’04