Archive for the ‘automotive’ Category

Top Republican senators oppose automaker bailout

November 16, 2008

Top Republican senators said Sunday they will oppose a Democratic plan to bail out Detroit automakers, calling the U.S. industry a “dinosaur” whose “day of reckoning” is coming. Their opposition raises serious doubts about whether the plan will pass in this week’s postelection session.

Democratic leaders want to use $25 billion of the $700 billion financial industry bailout to help General Motors Corp., Ford Motor Co. and Chrysler LLC.

By Stephen Ohlemacher, Associated Press Writer

Sens. Richard Shelby of Alabama and Jon Kyl of Arizona said it would be a mistake to use any of the Wall Street rescue money to prop up the automakers. They said an auto bailout would only postpone the industry’s demise.
Richard Shelby
Senator Shelby

“Companies fail every day and others take their place. I think this is a road we should not go down,” said Shelby, the senior Republican on the Senate Banking, Housing and Urban Affairs Committee.

General Motors headquarters is seen October 26, 2008 in Detroit, ... 
General Motors headquarters is seen October 26, 2008 in Detroit, Michigan. Picture taken October 26, 2008.(Rebecca Cook/Reuters)

“They’re not building the right products,” he said. “They’ve got good workers but I don’t believe they’ve got good management. They don’t innovate. They’re a dinosaur in a sense.”

Added Kyl, the Senate’s second-ranking Republican: “Just giving them $25 billion doesn’t change anything. It just puts off for six months or so the day of reckoning.”

House Speaker Nancy Pelosi, D-Calif., said over the weekend that the House would provide aid to the ailing industry, though she did not put a price on her plan.

“The House is ready to do it,” said Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee. “There’s no downside to trying.”
Rep. Barney Frank, Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi and Sen. Christopher J. Dodd were among the congressional Democrats negotiating the bailout settlement on Sunday. (Joseph Silverman/The Washington Times)

Above: Ready to bail, from L to R: Rep. Barney Frank, Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi and Sen. Christopher J. Dodd. Photo by Joseph Silverman

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http://news.yahoo.com/s/ap/20081116/ap_on_go
_co/auto_bailout;_ylt=AmAt77VLR57r0Uq41kBoeYWs0NUE

The New World Financial Order

November 16, 2008

For the past seven years, according to Rep. Jim Moran, “We have been guided by a Republican administration who believes in the simplistic notion that people who have wealth are entitled to keep it.” Actually, that “simplistic notion” has been the linchpin of the American system of free enterprise for the past two centuries. It has served to make the United States the most bountiful, wealthy and charitable nation on earth. Yet Moran says that system “doesn’t work in the long run.”

By Oliver North

My fellow Americans, welcome to the long run.

The coincidence of an economic downturn and our most recent political realignment have produced calls for urgent, dramatic, decisive action. Liberal politicians, such as Moran, are suggesting that we all would be better off if we’d adopt a more punitive tax code and use the Internal Revenue Service to redistribute the wealth. Republicans and Democrats already have allied to use our tax dollars to bail out an insurance giant, mortgage companies and financial institutions that made bad loans and extended credit to borrowers who couldn’t pay. Coming soon: tax dollars to save U.S. automakers. Attached to all these U.S. Treasury checks: countless pages of new fine-print regulations designed to prevent future financial stupidity — or to ameliorate its consequences. But as they say in the Marines, “You ain’t seen nothin’ yet.”

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http://www.creators.com/opinion/oliver-
north.html?columnsName=ono

Recession rears ugly head, global auto sales shrink

November 4, 2008

“We’re in a recession. It’s as simple as that ….The question is how long or deep is it going to be?”

By Patrick Fitzgibbons, Reuters
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Corporate results and outlooks darkened on Monday, and automotive companies from Japan to Italy to Detroit said October sales were the weakest in about 20 years as economies weakened and consumer credit dried up.

While government officials have gone out of their way to avoid the use of the much-dreaded “R” word (recession) in describing the current economic straits, a number of prominent officials acknowledged the severity of the crisis on Monday.

U.S. vehicle sales plunged in October, with General Motors Co down 45 percent, Ford Motor Co off 30 percent and Toyota Motor Co down 23 percent.

Mark LaNeve, GM’s North American sales chief, said the collapse in the U.S. market was linked to the “unprecedented credit crunch that is dramatically impacting the entire U.S. economy — from the housing market to big and small companies to banks to family run businesses.”

Adjusted for U.S. population changes, GM said, October’s sales figures made it the weakest month for the battered auto industry since the end of World War II.

New car sales also fell across Europe — down 40 percent in Spain and 19 percent in Italy.

The European Commission said the 15-nation euro zone was in a technical recession and economic growth would come to a virtual standstill next year, and called for coordinated action to prevent further collapse.

Also in Europe, more banks warned of more big writedowns and sharp profit falls, prompting lenders to tap government funds or seek state rescues.

And in the United States, factory activity contracted sharply in October, falling to its lowest point in 26 years, according one widely watched index.

“Pretty grim. It means we’re in a recession. It’s as simple as that …a pretty solid manufacturing recession,” said Robert Macintosh, chief economist at Eaton Vance Corp. “The question is how long or deep is it going to be?”

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http://news.yahoo.com/s/nm/20081103/bs_nm/us_financial6