The Original Bailout Terms:

Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.

Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.

Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including:

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The Presidential Task Force on Automobiles (PTFOA) rolls (flies?) into Motown today for a pow-wow with the ow-ow brigade. But wait! There’s more! Photo op alert! The AP tersely reports that “members of the government’s auto task force will test drive a General Motors Corp. electric car and tour a Chrysler LLC pickup truck factory on their Detroit-area visit Monday.” Whoa! GM has an electric car? Ohhh. They mean the electric – gas hybrid Hail Mary known as the Chevrolet Volt. The Detroit News—which previously linked their Volt-driving headline to a story on GOP opposition to more bailout bucks that forgot to mention either cart or pony (oops!)—is [now] a bit more forthcoming.

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Injuryboard.com, a website dedicated to promoting safety, protecting lives and chasing ambulances (I made that last one up, ish) writes:

The funeral of Harold St. John, a retired airline employee and former auto mechanic who died from mesothelioma caused by asbestos exposure, was interrupted at a New Jersey cemetery last week when, in a new moral low for defense tactics, a Chrysler official arrived with subpoena for his body.

The subpoena, which prevented the burial from taking place, was issued so that more tests could be performed to determine the cause of death. Before he died, 67-year-old St. John had sued Chrysler, along with Honeywell, claiming that the automobile brake linings he used to install in his father’s auto shop in the 50s and 60s had caused his illness.

The trial was set to begin March 9. Unexpectedly, St. John died on February 28. Though he had undergone a painful biopsy to provide a lung tissue sample while still living, Chrysler insisted on taking the body from its burial site before it could be laid to rest.

ChryCo spokesman Mike Palesi’s statement after the jump.

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Students (student?) of Sunday TV magazine shows will know that the Republican Party is beginning to realize the political advantages of throwing Detroit to the lions—I mean, upholding their responsibilities as guardians of the public trust (and purse). “The best thing that could probably happen to General Motors, in my view, is they go into Chapter 11,” Senator John McCain said on Fox News Sunday. Which would help GM reboot (not that John would ever say anything so hip), reorganize (not that John knows what that would entail) and renegotiate its labor contracts (ah-ha!) and emerge “stronger, better, leaner.”

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The president who did more to expand the federal government than any other in modern history began his first term assuring Americans that the only thing they had to fear was fear itself. Flash forward seventy-six years and FDR’s spiritual successor wants his fellow countrymen to live in fear—so his administration can achieve the same Big Government goal. Lets call it the Fram filter doctrine. Remember the old Fram filter ad? “You can pay me now or you can pay me later.” There’s your philosophical justification for the Detroit bailout. We have to bail out Motown (and everyone else) NOW or the whole economy will go to hell and we’ll WISH we’d made the “investment.” Rubbish.

Protmind writes:

I’ve got a question for the best and the brightest-child car seats in two seater cars. I drive a ’06 S2000 and I’m expecting my first child. I’ve read my owner’s manual which foretells doom and gloom for children who ride along. However having ridden in my father’s 190SL extensively (sometime with only meager lap belts holding me), some of these hyper safety warnings ring a little false. If I take the necessary steps to make sure an airbag will not deploy when a child is with me, is the front seat just as safe as the back seat? Or is there another reason children should be in the back seat only? If you post this, in the interests of protecting my mortified wife, please only use my screen nic.

Automotive News [AN, sub] is reporting that Der Spiegel is reporting that German automakers BMW and Daimler are planning on exchanging seven percent of each other’s shares. Daimler’s motivations seem clear enough; it’s been looking for a way to end its status as takeover bait for over a decade. (If you remember, the possibility of a hostile takeover had a little something to do with the ill-fated formation of DaimlerChrysler.) BMW’s motivation: cost-savings though component sharing with their [former?] Stuttgart rival. Yes, well… so much for BMW’s publicly-touted status as the last major independent automaker. Der Spiegel says the automaker’s majority owners– the publicity shy Quandt family– are not happy with the Daimler stock swap. I guess 46 percent ownership doesn’t buy what it used to.

According to the silver-lining seeking scribes at The Detroit News, the Presidential Task Force on Automobile is taking the long-term view on the Motown meltdown. Hang on. Didn’t DetN scribes Gordon Trowbridge and Christine Tierney read Daniel Howes latest column? You know, the one where Mr. Howes called bankruptcy deniers “deluded.” And yet, less than twenty-four hours later, the word “bankruptcy” appears in the DetN’s Task Force article exactly none times. Instead, there’s a hopeful assumption that the Obama admin wants YOU to support Chrysler (maybe), GM (definitely) and Ford (maybe) for as long as it takes to . . . well, we’ll get to that in a minute.

The federal auto task force that arrives in Detroit on Monday has spent the past two weeks meeting with a range of industry players, pushing its work beyond the automakers’ immediate cash crisis and strongly hinting at a longer term goal… the group’s focus appears to extend far beyond the balance sheet, looking more deeply into the question of what a successful U.S. auto industry would look like in the long run.

Yeah, that’s what I want: a gaggle of professional politicians deciding what the American auto industry should look like under a new five-year plan. So, how much is this boondoggle going to cost me? As the DetN points out, it’s not all about money (even though it is). DC’s going to make sure there’s plenty of green in that mean, mean, mean; mean green.

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Newbie TTAC registrant USLuxuryman entered this comment under the post Ford-UAW Deal Rejected By Two Locals. I’m republishing it here because I think it’s important for all of us to understand the fears, frustrations and general motivations of the workers at the sharp end. Now, if he could just walk away from that endless quiver of spears . . . . [NB: USLuxuryman is protected by TTAC’s no-flaming rule. Obviously.]

As an Auto Worker, instead of some hateful, biased, resentful outsider, let me help give you some perspective!

I work for Chrysler, but the ENTIRE AUTO INDUSTRY is in free-fall, and for a VARIETY of reasons! Those two Locals, or any others, have the RIGHT to say YES OR NO, just like you could vote for McCain or Obama! You have no say in that any more than I DO if you let your Police,Fire, and Teachers lose their jobs because you don’t wanna pay more in taxes!

if a Ballplayer turns down $45 Million, I can’t call him a fool, he is obviously in a different economic-bracket than you or me! These factors affecting our Economy were not caused by or controlled by the average Blue-Collar OR White-Collar worker in this or related industries!

The Big-Three didn’t MAKE you buy SUV’s and Pickups! AMERICA wanted these vehicles until the 4/Gal gas slaughter helped to KILL the economy! We DON’T make the decisions that put us in this shape, or put the Credit-markets, Housing-markets, or the economy overall in the shape that it is in today! We take direction from Management, just like most of you do on your jobs.

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A message to the troops from GM’s VP of sales and marketing for GM North America:

Today’s submission of our annual report has generated a significant amount of media speculation about GM. Specifically, the media are covering the auditor’s language about whether or not we are a ‘going concern.’

Let me be clear — neither is this “new” news, nor does it change our viability plan to succeed.

For months we have explained the need to restructure and recapitalize our business for the long-term. As dealers, you are integral to that long-term success. Dialogue with the Auto Task Force team in Washington is ongoing, and we remain focused on implementing our viability plan.

So, here’s what I’d ask of each of you: Stay focused on the business, not the media hysteria. Reassure your customers that we are here for the long haul and that we’ve overcome challenges many times before in our 100 year history. Also remind customers that we deeply appreciate their business and support. For new customers, take a few extra minutes to show them the great GM cars and trucks we offer, and demonstrate our commitment to the best service in the industry.

As always, we are very appreciative of your support and welcome your continued comments.

The statement we are using in response to media questions is attached for your reference.

Mark LaNeve

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Despite General Motors’ epic slide into Chapter 11, or perhaps because of it, its defenders are busy re-writing history. It’s the Poseidon Adventure redux: a huge, well-run ship overwhelmed by a sudden, terrible force of nature. Except this ship will eventually right itself. In truth, GM really is the Titanic: a badly built vessel helmed by men blinded by short-term greed and long-term hubris headed for Davey Jones’ locker. Make no mistake: GM CEO Rick Wagoner had the chance to return GM to dry dock, repair the company’s flaws, and make it across turbulent seas. But then Wagoner is a GM lifer—his cowardice is both genetic and institutional. What’s the mainstream media’s excuse?

TTAC reader JG writes:

Sajeev, do I have a question for you! Knowing the roads (and potholes) of Houston (like I know you do) here goes. I own a 2001 Ford Explorer 4-door. My pregnant wife curses the ride every time she’s in the car (whether it’s moving, or not). I have recently replaced the tires, which helped a little and ball joints up front. I’d love to get out of this car into something safer, but it’s not an option for a few more years. Is there anything I can do to improve the ride quality? I know I’m dealing with limited options with the solid rear axle, but there has to be something, right?

Sajeev writes:

I see two quick fixes: put several bags of mulch in the cargo area, or hack the muffler and run a straight pipe. (You can get away with it in Texas.) The mulch takes the bite off the leaf springs, and a large amount of ride quality comes from the rear suspension, fuel economy penalty be damned. But the straight pipe ensures your wife will never complain about the Explorer’s terrible ride. Ever.

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Saturn spokesman Steve Janisse must rue the day Automotive News [AN, sub] picked-up the phone. Hey, Steve! Wassup with the whole selling the brand thing? How’s that going anyway? “There is interest from investors in doing a spinoff, and there are other entities interested in just buying it.” So far, so spinmeisterly. And then, the gotcha (sans quotes) “He said he does not know whether the interested parties are other automakers.” So, are we to believe that GM’s got buyers for Saturn but doesn’t want to tell Janisse? I don’t think so. Anyway, AN reveals that GM’s spending lots of taxpayer money to hire someone to find a mark willing to rethink the idea of losing billions of dollars in the car biz. “GM has hired Steve Girsky, formerly senior auto analyst for Morgan Stanley, to help advise on any possible Saturn deals … ‘He has extensive knowledge of the financial side of the equation and so he’s helping evaluate the different options,’ Janisse said. ‘But he’s also there to build the business plans for the options.'” Good luck with that.

I’m not using the poker definition of the word “hit” here—despite the obvious metaphor of GM drawing on 20 in a game of 21. (Three decades ago.) I’m speaking here in the Britney Spears sense of the phrase. Well, actually, it’s not me. It’s none other than House Majority Leader Nancy Pelosi. According to The Detroit News, Nance told reporters today that she supports a strong manufacturing sector. “But this isn’t endless,” she said. “And there has to be a sign of viability and it has to come soon.” Spears fans will recognize Ms. Pelosi’s cry for a pistonhead portent as an echo of Ms. Spears lachrymose lament. So, what sign of viability does the D.C. politician want; you know, as GM has already submitted its official viability Powerpoint presentation? If she’s looking for some kind of sales turnaround, well, uh, anyway . . . “The White House’s top auto advisers will travel to Detroit next week to meet with all three domestic carmakers, Obama administration and auto industry sources said Thursday.” Huh?

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