Before you delve into the fact and substance of this “new deal” for Detroit, note: Senate Republicans are threatening to torpedo this boat before it leaves harbor. The Detroit News reports “Some Republicans remain strongly against the idea of bailing out Detroit automakers. Sen. John Ensign, R-Nev., told CNBC on Tuesday he was considering trying to thwart a vote. “I think that not only myself, but several of us will be looking at possibly blocking this package,” Ensign said. White House chief of staff Josh Bolten plans to attend a Senate Republican lunch today to try and win over skeptical lawmakers. Democrats need 15 to 20 Republican votes to reach 60 in the Senate — the hurdle to end debate and proceed to a vote.” OK, the new “key provision:” the automakers must prove that they’re doing the right things to a car czar by March 31. Otherwise, it’s C11 for you bub. Oh wait, sorry. The czar has the power to grant a one month extension. And he or she could call back the loans at any time. And he or she must approve all transactions over $100m (up from a paltry $25m). Gentlemen, meet the new boss. Is there more? What do you think?
As if that wasn’t enough interference in the D2.8’s business, legislators are still hung-up on the whole “you gotta drop your lawsuits against Nancy Pelosi’s home state’s federal-authority usurping fuel economy regs.” Yes, I know: highly ironic stuff when the feds force a private company to drop a lawsuit that protects important federal rights to control intrestate commerce.
More irony…
“The auto CEOs know that we are willing to give them a chance to restructure and turn themselves viable, accountable to the taxpayer,” [House Speaker Nancy] Pelosi said. “If that is not the path, we are not going to be engaged in corporate welfare, and they will not succeed.”
So what are they engaging in now?
Anyway, other than Senate opposition, there’s another wild card: Cerberus. To mollify critics who say “why the hell should we use tax money to pro-up an automaker owned by a private equity firm who could do this with one hand tied behind their bank account?” negotiators are “near agreement” to hold Cerberus Capital liable for any potential government losses at Chrysler (as if). The fine print on that one should be VERY interesting…
In fact, today should be an interesting day.
My face has found the palm of my hand.
Interesting indeed. Throw all the business financial laws laws up in the air and see where they land….most probably in court!
Obviously they want Chrysler to deal with their insurmountable problems right now via Chapter 7 or 11, and this is their route to doing so without coming right out and saying it.
It’s far from the done deal that the MSM seems to be proclaiming.
The Senate will be a tough hurdle. A filibuster is a real possibility, and I doubt that an urging from W to support the bill carries any weight whatsoever with Senate Republicans (or anyone for that matter)
Personally, I want the loans to proceed, and I consider the lawsuit provision a good thing. No OEM wants the CO2 regulation – and if the general public knew what it meant for them in terms of what kinds of vehicles they’ll be able to drive, neither would they. Let Toyota carry the ball for a while. The Big3 have been the bad guy on this for too long.
…. and to think comedians like Jon Stewart were openly wondering if they would have any material to work with from Nov 5 onward!
As I have said more than once on this site, that buzzard John W. Snow always knows how to make money. For himself.
Any bets on whether Capt. Kirk, who lives in Vegas, (or J. York) might have placed a call to his Senator Ensign? I wouldn’t doubt he still has some hard feelings over what happened a few years ago….
This would be awesome.
http://blog.mlive.com/autoblog/2008/12/jerry_york_for_car_czar.html
Every day I read everthing bailout related at Bloomberg .com,and Detroit News and of course TTAC.
If nothing else I’ve learned the names of many US Senators and Congressman.I think I even have a grasp of how the US lawmakers do buisness.I guess
the learning experience never stops.
Now up here in Canada the different levels of government are waiting {with thier checkbooks}to
see the outcome in the US.
Chrysler is ready to close the doors and move south if Canada cheaps out.GM has not made such threats ‘YET’.As in the US Ford is not tipping thier hand.
So the Senators vote today?Well I know the outcome I would like to see.
From what I read yesterday, Ford is saying “No Thanks, we’ll pass” on this.
I suspect the Ford family is loathe to relinquish control of the cash cow, errr, company. I can certainly see how Mullaly would be against it. He’s accomplished a great deal in a short time. While Ford is not anywhere close to out of the woods, I think they can at least see some sky from where they are.
Any confirmation from TTAC’s sources?
I am tired at the use of the word Czar in this country. Czars were unelected Russian absolute dictators, the last of which was an ineffective leader that was shot dead execution style by the soviets and dumped in a grave with the rest of his murdered family. It’s just distasteful and such an unamerican term. “Car Czar” just sounds like someone who will end up dead in the trunk of a Lincoln Town Car during a communist reveloution… Oh wait, maybe it is the perfect term…
The misinformation campaign continues.
You need 60 votes to break a filibuster, not to stop debate. That can be done with 51. And the Republicans aren’t going to filibuster two weeks before Christmas to shut down GM. So the republicans should be a non-issue — except that the D leadership can’t guarantee the votes.
So the real people holding this up are a few D senators who are refusing (quietly) to vote. Obviously if the UAW finds out they will put some pressure on them. Better to left a few Rs be face men.
Yes, the THREAT of a filibuster can be used to delay stuff, but again if Reid had the votes, he could move quickly. He doesn’t have the votes, yet.
The addition of the car czar is a bad joke. You want accountability? Give me the heads of Rick and his entire BoD; remove every bonus from GM’s payroll, and have the car czar personally sign off on ever salary over 100K.
Anybody catch Lutz on Lou Dobbs last night saying the “credit crisis” is the reason for GM’s near death? When Lou said, “but Honda and Toyota aren’t in the same place”, Lutz said, “well, the problem is that back in the late 80s and early 90s, GM made bad cars that have turned that generation against us.”
Uh, no Bob, try then and the 1970s…and early 80s…and mid 90s…and late 90s…. and…….
John