Senate Majority Leader Harry Reid has cast doubt on the lame duck Congress’ ability to ram through another multi-gajillion dollar bailout economic stimulus package– upon which GM’s hopes currently reside. Automotive News [AN, sub] reports that the Nevada Democrat reckons that the dems have no chance of passing “a very robust, bold stimulus package” before the new team hits the field. At least not without those pesky Republicans lining-up behind it. AN correctly concludes that this is a septic tank full of Not Good for Motown– especially as GM has just publicly declared that they’ll be out of cash by December (a fact curiously absent from AN’s coverage). “The Detroit 3 and the UAW last week asked congressional leaders to include in the legislation $25 billion in loans for retired autoworker health benefit trusts, called VEBAs. They also want the bill to prod the Treasury Department and the Federal Reserve into releasing other federal money as ‘bridge’ loans to get the automakers through the current economic crisis.” Reid’s run the numbers and… “Until the first of the year, I still have a one-vote majority in the United States Senate,” Reid told CNN. “I’m senior enough and experienced enough to know that you can’t do something with nothing. I need votes.” And here’s the kicker: “The leader specifically mentioned only increased unemployment compensation benefits as a priority in a stimulus bill, not aid to automakers.”

I’ve received a few emails upbriading the site for OCDing on the bailout story. My only defense: TTAC has covered this story for well over three years. We are the clear path through the blizzard of bailout B.S. being bandied about by bailout backers. While we glean our info from the usual suspects, our editorial eye is fixated on the details and implications that other outlets miss, ignore or bury. For example, this Automotive News [sub] story reveals the fact that the cappi di tutti cappi di automobili left their sit-down in Nancy Pelosi’s Washington office “through a hidden exit from the office suite of Senate Majority Leader Harry Reid sometime around 6:30 p.m. Security personnel kept reporters at a distance.” THIS is how OUR politicians spend OUR tax money? In closed-door meetings with a coven of craptastic carmakers? OK, no surprise, but it’s clear the important questions are not being answered– if only because the principles involved are literally sneaking away into the night. So, anyway, here’s the latest teat-sucking scenario…

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That works, I suppose. Instead of giving– sorry “loaning” GM, Ford and Chrysler $25b, Nancy Pelosi and Co. will tell voters that the money’s going to “help the Detroit 3 meet their obligations to newly created retiree health benefit funds.” So tax money’s not going to incompetent SUV-building American automakers. It’s going to blue collar retirees, who never did a thing wrong except show up for work and put in an honest day’s labor. This according to Automotive News‘ source familiar with the people close to the matter who are actually the people who are cutting the deal but are too chicken-shit to say so and therefore co-opt lazy journalists by getting them to let them go “off the record.” Perhaps this would be a good time to revisit the fact that the $25b Uncle Sam’s minion want to dump into the United Auto Workers’ voluntary employee beneficiary association (VEBA) will fall into the grasp of a union known for corruption, waste, fraud and mismanagement. If that link doesn’t convince you that the UAW may not be the best stewards of your tax money or the workers’ health care, have a browse here. Or have a look at General Motors Death Watch 165. As the Brits say, they’ll be tears at bedtime. Oh, and would it be churlish of me to point out that Ms. Pelosi, winner of the Cesar Chavez award, own a non-union vineyard and hotel, yet counts unions as one of her top three largets contributors?

Democratic House Speaker Nancy Pelosi has met with the heads of Ford, GM, Chrysler and the U.A.W. While the meeting was closed to the press (way to go government openness), what’s the bet the words “how much?” escaped her plumpness-assisted lips? The Detroit News reports that Pelosi emerged from the confab with her political PR prepared for battle: “‘We may need to make a statement of confidence in our auto industry,’ Pelosi told NPR this afternoon. ‘We’re not saving those companies, we’re saving an industry. We’re saving an industrial technological and manufacturing base… It’s about jobs in America.'” More interestingly, “Congressional leaders are likely to put out a statement on Friday — the same day that General Motors Corp. and Ford Motor Co. are expected to announce heavy third-quarter losses.” So here’s how it goes down: Ford and GM announce catastrophic losses and third-degree cash burn, the stock market freaks (for the few remaining hours before the weeked) and Pelosi and Co. ride to the rescue with a fast-tracked bailout plan, which may or may not be pegged at $25b (for starters). Then it’s a race to the trough, as Cerberus hopes and prays no one notices that it’s using your money to cover their ass.

The Senior Director of Communications for the Alliance of Automotive Manufacturers has revealed that Subaru and Nissan are applying for Department of Energy’s (D.O.E.) low-interest loans. As TTAC reported earlier, the just-released rules for the loans do NOT contain a provision limiting calls on the $25b available to American factories twenty-years-old or older– as originally thought. The door is now open for any automaker with operations within these United States that thinks it can build a vehicle that’s 25 percent more fuel-efficient than a comparable model. “For competitive reasons, I would think that any elegible automaker would apply for the loans,” Charles Territo told TTAC. “You can’t write anyone off.” That said, if the D.O.E. rules are enforced as written, you CAN write off GM and Chrysler; they don’t meet the regulations’ criteria for financial viability. Territo expressed confidence that Detroit’s automakers will “figure out a work around” for that and other stipulations. “It’s Washington. Where there’s a will, there’s a way.” Territo’s organization is also supportive of the next bailout: another $25b to $50b aimed at improving American automakers’ liquidity. “A failure will cost more than a bailout,” Mr. Territo opined, declining to provide statistics to justify the claim.

“DOE would like to invite you [ED: who shall remain nameless] to participate in a conference call for industry stakeholders on the new Interim Final Rule for the Advanced Technology Vehicles Manufacturing Loan Program issued this evening. The program was authorized by Section 136 in the Energy Independence and Security Act of 2007. The FY09 Continuing Resolution authorized up to $25 billion in direct loans. The press release is attached. The Interim Final Rule is posted at http://www.atvmloan.energy.gov/.” Interim Final Rule? Yeah, that sounds like the feds alright. Anyway, while I scan the pdf myself, I once again invite TTAC’s Best and Brightest to cast their collective beady eye on this doc, which was allegedly going to take over a year to produce. I guess it pays to have high friends in low places. Right. Let’s get stuck in…

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The Detroit Free Press finally gets it. “GM’s report Friday will be so dismal that the federal government will be forced to decide whether the U.S. auto industry will survive, people familiar with the situation told the Free Press.” Don’t be fooled by the “people familiar” routine. This is the Freep’s editorial team acknowledging GM’s acknowledgement that they’re fucked. Without federal aid, they’re done. The fact that Mssrs. Wagoner, (GM) Nardelli (Chrysler), Mulally (Ford) and Gettlefinger (UAW) are meeting with House Speaker Nancy Pelosi today, the day before GM announces its Q3 bloodbath, is hardly a coincidence. Nor is the unprecedented timing. For the first time in recent history, both GM AND Ford will reveal their respective meltdowns on the same day. The basic idea is simple enough: if the news is bad enough, SOMETHING MUST BE DONE! Throw in Barack Obama’s victory and you have a perfect storm of federal teat sucking.

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The capi di tutti di automibili Americani are having a little sit down today, to figure-out the best way to spend your tax money. GM CEO Rick Wagoner, Chrysler CEO Bob Nardelli, Ford CEO Alan Mulally and House Speaker Nancy Pelosi (who never met a union she didn’t like) and United Auto Workers President Ron Gettlefinger will meet to iron-out details of their federally-sponsored survival strategy. “I want you should know that our friends in Washington have been very kind,” Nardelli will pronounce. “I ask Mr. Wald and Mr. Vlasic of The New York Times to tell us the good news about the first 25 billion dollar payment, which, as you know could have been, shall we say, tied-up.” “The Energy Department usually takes more than a year to write rules;” the Timesmen report. “Congress gave it 60 days but it completed the work in about 30. The program, hurriedly passed by Congress as part of the budget for the fiscal year that began on Oct. 1, was given to the Energy Department because it is intended to finance the development of high-mileage car models or components for them.” “Notice the word ‘intended’.” [murmurs of assent] “There are still problems. Boys?” “Another complication is that before it can lend money, the Energy Department must conclude that the borrower has assets that exceed its liabilities, and is likely to be able to repay the principal and interest.” “Details, but important ones, I think you would agree. Our friend Ms. Pelosi is on the case and will report in due time. So… Next order of business. The next $25b. Our reporter friends will now leave the room. Ron?”

Automotive News [AN, sub] reports that freshly emboldened Democrats are looking for Uncle Sam to underwrite another $25b worth of no- to low-interest loans for embattled American automakers. And they hope to get the cash money to GM, Ford and (if they’re still around) Chrysler by year’s end– without any of those pesky strings that made the Department of Energy’s $25b no- to low-interest “retooling” loans such a PITA. Yes, “The source [“familiar with the discussions”] said Democratic lawmakers want the second $25 billion in loans to be more flexible than the first batch. The loans would be part of a proposed stimulus package of $100 billion to $300 billion to be considered in a lame-duck session of Congress. The size of the package would depend on what outgoing President Bush finds acceptable.” While we’re not big on AN’s speculation– I mean “source”– the unnamed spy offered an interesting codicil to the down-low. “The source said Democrats are not inclined to provide loans to support a proposed General Motors purchase of Chrysler LLC.” Not inclined? Does that mean, oh go on, twist my arm?

John Snow was the U.S. Treasury Secretary under President George W. Bush, from 2003 to 2006. Snow is now drawing a paycheck– the size of which dwarfs all but GM CEO Rick Wagoner’s imagination– for shaking-down Uncle Sam on behalf of Cerberus’ Chrysler play. As you’d expect, Snow is wasting no time in pursuit of your tax money. “Cerberus Capital Management LP Chairman John Snow said Wednesday that president-elect Barack Obama and his treasury secretary need a bipartisan plan to counter the worst economic downturn in about 50 years. ‘What we need is to make sure that a vital industry like autos… which is such a big part of the overall economy, doesn’t lead us into a deeper and harsher downturn,’ Snow said in an interview on the CNBC cable channel. ‘The collapse of the auto industry at this time would be devastating for a new president.'” Note: president. Not American workers. And I’d like to take this opportunity to remind TTAC’s Best and Brightest that Cerberus claims income of over $100b per year from its various businesses. OK, right. Where were we? Changing the subject slightly, how about GM’s “welcome” to the new prez?

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Less than 24 hours after Senator Barack Obama won the race for the U.S. presidency, Bloomberg reports that Motown’s mauled mavens will step-up their campaign to suckle on the milk of federal tax money. “GM, the biggest U.S. automaker, must get government aid because ‘time is very short,’ said Roger Altman, the former Treasury official advising the company in its merger talks with Chrysler LLC. ‘The consequences of a collapse by GM or all three could be very severe.'” (As opposed to slightly severe.) Step 1: change the terms of the Department of Energy’s $25b worth of no to low-interest loans. Retooling? Fuck that shit. “The industry’s agenda for the new president will be topped by intensified calls for an immediate disbursement of $25 billion in low-interest loans signed into law by President George W. Bush Sept. 30. While the money is supposed to be for the development of fuel-efficient vehicles, automakers argue it should be freed up to meet current capital needs.” Step 2: get a slice of the already-approved banking bailout bucks. “Sympathetic lawmakers also have been calling for auto lenders, if not the manufacturers themselves, to get some of the $700 billion bailout fund set aside for financial institutions.” Do you really have the stomach for this stuff? Read on…

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First things first. CarGurus.com‘s bailout poll– “Should the government bailout GM and Ford?– was an opt-in affair. Second, it’s a bit of a stretch to assume that 8112 people shopping for cars on CarGurus represent more than 8112 people shopping for cars at CarGurus. Third, the poll was worldwide. Stay with me here. Just 29 percent of the 8112 respondents allow CG to know their physical location. Of those, 29 percent were outside the U.S. These foreign respondents were in favor of a bailout by a margin of 51 to 49. The U.S. contingent (of that 29 percent) voted 59 – 41 against a federal bailout for The General and The Blue Oval Boyz. All in– everyone tallied– the vote was 52 to 48 against. Clear? Fourth, why wasn’t Chrysler in the poll. “Ford and GM seem to be in the news a lot recently,” CG editor Steve Halloran told me. “I really don’t know why we didn’t include them.” Personally speaking, Halloran would “love to see them get bailed out. I’d love to see the American carmakers continue.” That said, “I’m not sure it’s the right thing to do.” If CG’s poll is even remotely accurate, it sounds like Joe Q. Public shares his ambivalence. Somebody get GM spinmeister Steve Harris on the line, STAT!

“The Monday meeting included House Majority Leader Steny Hoyer, D-Md., and many committee chairmen, including Reps. George Miller, D-Calif.; Chris Van Hollen, D-Md.; Barney Frank, D-Mass.; James Clyburn, D-S.C.; Xavier Becerra, D-Calif.; and Sander Levin, D-Royal Oak. Rep. John Dingell, D-Dearborn, took part by phone, as did other members on the campaign trail. Pelosi also discussed the auto issue separately with Sen. Majority Leader Harry Reid, D-Nev., aides said. Over the weekend, Dingell and Sen. Carl Levin, D-Detroit, spoke separately with the CEOs of General Motors Corp., Ford Motor Co. and Chrysler LLC, as well as United Auto Workers President Ron Gettelfinger.” No conspiracy there, then. Just our duly elected officials looking to “save” Detroit by doing what they do best: spending your hard-earned tax money. And that of your children’s children’s children. The Detroit News names names, but can’t put a number to their/our pain. It looks like doubling down. For now. “The hourlong meeting focused on whether Congress should move to quickly approve up to $25 billion in ‘bridge financing’ to aid automakers through a mounting fiscal crisis. The money would be in addition to the $25 billion auto loan program funded by Congress in September to help retool factories to build more efficient vehicles. Drew Hammill, a spokesman for Pelosi, said ‘discussions (are) ongoing,’ but declined to elaborate on Monday’s meeting.”

“Yes, the auto industry is big. And important. But Congress shouldn’t dole out more taxpayer dollars to save firms that missed opportunities to help themselves.” And so begins The Dallas Morning News‘ editorial advising its readers that Motown should be left to its own devices. The News is home to one of automotive journalism’s genuine gems: writer Terry Box. Box has always been loyal to his readers’ best interests; this editorial has his fingerprints all over it. Be that as it may, Motown may wish to point out that Texas is home to Toyota’s massive– and now underutilized– Tundra factory. Of course, it’s also the state where you’ll find GM’s Arlington plant, once-proud maker of the GMC Yukon, GMC Yukon XL, Chevrolet Suburban, Chevrolet Tahoe and Cadillac Escalade. No matter how you slice it, The Lone Star state has at least one dog in this fight. Make the jump for the rest of the ed [thanks to peakwarehouse for the link].

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