Chrysler **BANKRUPTCY FILED** / GM US govt. bailout

[Everso Biggyballies]

Just heard on the news that up to $23 Billion bailout sought by the companies to help them avoid going under has been granted by George Bush.

WASHINGTON (AFP) – General Motors will get 9.4 billion dollars and Chrysler four billion in a rescue plan unveiled Friday, the White House said, adding only GM may qualify for a further four billion in February.

GM, the biggest of the Detroit Big Three automakers, receives the bulk of the financing being made available from the Treasury Department's 700 billion dollar Troubled Asset Relief Program.

President George W. Bush agreed to tap the TARP, initially designed to rescue the embattled financial sector, to avert a collapse of the auto industry that could further damage the recession-mired economy.

The US government's 13.4 billion dollar rescue of GM and Chrysler offers short-term loans, requiring tough reforms to restore the companies' viability.

An additional four billion dollars from the TARP will be available in February, contingent upon congressional approval of the second portion of that program.

The automakers will have to take steps to demonstrate their viability by March 31.

Both GM and Chrysler had pleaded for government aid saying they were at risk of collapsing soon amid a cash crisis from plunging sales and tight credit.

Ford, the nation's second-biggest automaker, has said it has enough cash to operate for several months and has requested a nine billion dollar line of credit as a backstop against deteriorating market conditions.

The Treasury, in separate statements, spelled out the terms of the loan offers to GM and Chrysler, both with closing dates of December 29.

GM is offered 9.4 billion dollars in two tranches: 4.0 billion on the closing date and 5.4 billion on January 16.

An additional four billion dollars from the TARP will be available on February 17, contingent upon congressional approval.

Chrysler, the smallest of the Big Three and owned by private investment firm Cerberus Capital Management, was offered four billion, available on December 29.

http://news.yahoo.com/s/afp/20081219/ts_alt_afp/financeeconomyusautofigures_081219163355

[Everso Biggyballies]

 A bit more, and reactions of 'the big3'......

The White House will give struggling U.S. auto makers $17.4 billion in emergency loans from the Treasury Department's Troubled Asset Relief Program, senior administration officials said. The funds will be distributed in two stages, the first totaling $13.4 billion. A second $4 billion tranche will be available in February, contingent on the release of the second half of the $700 billion TARP. An official said he expected General Motors (GM) and Chrysler to take advantage of the loans later Friday. Ford Motor (F) has said it doesn't need the emergency cash for now.

Under the White House plan, the loans will be called on March 31 if the companies have not proven that they are viable.

The terms and conditions of the deal mirror those in the bill that passed the House of Representatives last week.

GM's press release:

    GM Statement on Administration Providing Bridge Loan to Domestic Auto Industry

    We appreciate the President extending a financial bridge at this most critical time for the U.S. auto industry and our nation's economy. This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on us.

    This will allow us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success. It will lead to a leaner, stronger General Motors, a GM that is:

    *dedicated to great products, exciting design, and world-class quality

    *fully committed to leading in energy-saving vehicles and technologies,

    *responsive to the needs of our customers, our stakeholders and the communities we live in and serve.

    We know we have much work in front of us to accomplish our plan. It is our intention to continue to be transparent as we execute our plan, and we will provide regular updates on our progress. We again thank the Administration for this important support of our industry at this challenging time, and we look forward to proving what American ingenuity can achieve.



Ford's press release:

    FORD MOTOR COMPANY WELCOMES ACTION TO PROVIDE EMERGENCY FUNDING TO GM AND CHRYSLER

    DEARBORN, Mich., Dec. 19, 2008 – Ford Motor Company said today that it welcomes action by the Administration to provide emergency funding for General Motors Corp. and Chrysler LLC.

    “As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government,” Ford President and CEO Alan Mulally said. “But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy.”

    Ford recently submitted to Congress its comprehensive business plan, which details the company’s plan to return to pre-tax Automotive profitability by 2011. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

    “Ford has a comprehensive transformation plan that will ensure our future viability – as evidenced by our profitability in the first quarter of 2008,” Mulally said. “While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth.”

    Ford is asking for access to a line of credit of up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan.

    “For Ford, a line of credit would serve only as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” Mulally said.

    Ford reiterated that it is continuing aggressive actions to reduce costs and improve Automotive gross cash to fund its product-led transformation plan, despite the continued weakness in the global automotive market and economic environment. Ford said it is more committed than ever to deliver more of the safe, affordable, high-quality, fuel-efficient vehicles that consumers want and value. The company’s plans include:

    * Delivering best-in-class or among the best fuel economy with every new vehicle introduced.
    * Investing approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.
    * Introducing industry-leading, fuel-saving EcoBoost engines on today’s vehicles for up to 20 percent better fuel economy and up to 15 percent fewer CO2 emissions versus larger-displacement engines.
    * Bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles.
    * Upgrading the Ford, Lincoln, Mercury lineup in North America almost completely by the end of 2010.
    * Bringing six European small vehicles from global B-car and C-car platforms to be built in Ford’s North America plants.
    * Retooling three North American truck plants to produce small, fuel efficient vehicles.
    * Building on vehicle quality that is now on par with Honda and Toyota – and that consistently is being recognized by important third-parties like J.D. Power and Associates’ Initial Quality Study – driven by Ford’s disciplined and standardized processes for every product.
    * Building on vehicle safety leadership – with the most U.S. government 5-star safety ratings of any auto company and recently moving past Honda for the industry’s most IIHS “Top Safety Picks” – plus new smart safety features, such as the industry-first MyKey technology that limits top speed and audio volume for teens and the first forward crash-avoidance system for mainstream vehicles.
    * Supporting Ford’s products with a lean, flexible global manufacturing system on par with leading Japanese and European facilities.



Chrysler's press release:

    An Open Letter From Bob Nardelli

    To Chrysler employees and other stakeholders:

    We have received news that U.S. Treasury Secretary Henry Paulson will provide $4 billion of initial funding to Chrysler LLC from the TARP (Troubled Assets Relief Program) as a loan to help bridge the current financial crisis. We appreciate the Administration’s confidence in Chrysler.

    As outlined in our submission to Congress, we intend to be accountable for this loan, including meeting the specific requirements set forth by the government, and will continue to implement our plan for long-term viability. The receipt of this loan means Chrysler can continue to pursue its vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again.

    For Chrysler to succeed in its mission to return to profitability, we need the continued support of our many business partners. Terms associated with the bridge loan include Chrysler’s commitment to work with key constituents – including our owners, lenders, suppliers, dealers, management and employees – to identify and achieve the cost-savings concessions we need to build a long-term viable enterprise. These concessions discussions will happen quickly, as a full governmental review and approval of our plan is expected by March 31, 2009.

    We are meeting with our suppliers, mindful that they are going through a difficult period as well. But we must cooperatively find ways to further reduce our costs while maintaining normal operations. We will ask our suppliers to maintain their commitment to reasonable trade terms and normal fulfillment of orders for as long as the federal loan is outstanding. This will assure that neither Chrysler, nor our suppliers would suffer the substantial losses caused by the plant/production shutdowns that result from stop shipments or other disruptions.

    We will seek continued dealer cooperation to improve our cash position and consolidate our U.S. network. Project Genesis is on the path to aligning our product portfolio with a smaller, healthier tri-branded dealer network based on the realities of our business environment. Because strong, healthy dealers are essential to our success, we are also working with our dealers to keep dealer inventories in line with the marketplace, focusing on how they can support their business despite the falloff in sales through sales of used vehicles, service and parts.

    As a condition of the bridge loan, we have committed to work with our lenders to seek their participation in concessions as well.

    Cerberus has already agreed to forgo any benefit from the upside that would, in part, be created from the bridge loan and any other government assistance that the Company may obtain.

    All employees have and will continue to help support Chrysler’s recovery. We have also partnered with the UAW to find new opportunities to increase our competitiveness. The Company has already undertaken and will continue to undertake significant cost reduction actions related to salaried workers also.

    The bridge loan allows us to meet cash needs, pay our suppliers, continue developing great products and move forward with the restructuring and streamlining of our organization that we began in 2007. This restructuring will reduce the number of personnel layers while increasing managers’ span of control, enabling us to reduce costs, make faster decisions and do our jobs effectively with fewer resources.

    In our drive to profitability, we will not slow down on plans to provide the cars and trucks that people in markets around the world want to buy. We have 24 major launches in our plan from 2009 through 2012, with a key feature of this future product strategy being our capability as an electric vehicle company. Building on our status as the largest producer of electric-drive vehicles in the United States today with our GEM unit, we are focusing on electric as our primary clean-vehicle technology. Combined with our new products from our ENVI group, we expect that 500,000 Chrysler electric-drive vehicles will be on the road by 2013.

    It is essential that we continue to promote our lineup of current and future products so that our customers understand the profound changes taking place at Chrysler. With that in mind, we will be revealing several important new products at the upcoming North American International Auto Show. We also sought the support of our local Detroit area dealers for the auto show, and I want to express my appreciation to all those that have provided assistance to help fund our exhibit.

    While promoting our products, we will also appropriately scale back some of our presence at the auto show because of current business conditions. We have conserved costs in our press event with vehicle reveals that are product-focused and straightforward, and a simplified product display.

    As we draw to the end of this very eventful and difficult year, I want to extend my thanks to all who contributed to Chrysler this year, including our many colleagues who have moved on. Against the difficult conditions of a global recession, you have once again shown the resilience that is the hallmark of Chrysler people. In recent weeks, I have received hundreds of letters of support from those in the extended Chrysler family, confirming that there is great enthusiasm to restore our company to success.

    With the holidays upon us, I hope you can take time to enjoy the warmth and companionship of good friends and family. Please have a safe and joyous holiday season, and let’s all return in 2009 with a renewed commitment to making Chrysler the great company we all want it to be.

    Bob Nardelli

[Prophet][]

Even thouhg Bush by-passed congress by taking the funds out the already approved releif program this was the deal that should have been done. The big three don't deserve their own program.

[bpratt]

Why is it that they they are now starting to really talk about alternative energy car making ?

No doubt that's part of the conditions of the funding, but why haven't they really been doing as much as they could've been doing before now ?

[Oldtony]

Interesting question bpratt, and of course the answer is another series of questions.

1: A huge portion of middle America doesn't believe in "Peak oil" or "Climate change". Both are just Arab plots that are designed to deprive Americans of their God given right to drive big Pick-ups.
Forget the guns and the National Rifle Association, can you imagine the power of a National Pickup Association?

2: Every time the US manufacturers want to re-tool for a maor change in model line up they have to re-negotiate rates and conditions with the UAW. Management has found that it has been easier to give in to them as far as the Detroit and Dearborne plants are concerned, and the "truck plants" in other states than to do wholesale robot technology retooling as has happened in Japan, Europe, and Korea. Add the cheap labour plants in Mexico that are used to build older model trucks that no longer comply with US safety standards but can be " imported " under NAFTA and you have an industry that is inefficient on both cost and quality.

3:The US industry is stuck with a dealer network based on manufacturers having multiple brands supossedly competing with each other. Cutting off suply to all those franchises is a legal nightmare.

4:Much of America is inward looking, and management in Detroit is American. They just don't get it that overseas manufacturers, and even their own overseas subsiduaries could possibly be more technically advanced than they are.

5: The huge size of the corporations leads to them being bureaucratic and slow moving and they have had a very centralised control model in the past few years. Ford has at times brought in overseas executives to central management, but I don't think GM has ever had any non-American at the top level.

Actuall I think that this bail out will prove the wrong decision. Chapter 11 would have allowed a
a; A total clean out of under performing management without Golden parachutes.
b; Canning all existing agreements with the UAW.
c; Dumping the dealer network free of legal threat.
d; Temporary and permanent plant closures with minimised holding costs.

The psychology of bankruptcy clearance sale, together with the current (very temporary) drop in fuel prices would have allowed clearance of the huge stockpile of fuel hungry vehicle stock. I have a feeling that by the time they run outof bail out money that opportunity will have passed.  Maybe Goerge W. has left the Obama administration the ultimate ticking time bomb.

[bpratt]

Interesting question bpratt, and of course the answer is another series of questions.

1: A huge portion of middle America doesn't believe in "Peak oil" or "Climate change". Both are just Arab plots that are designed to deprive Americans of their God given right to drive big Pick-ups.
Forget the guns and the National Rifle Association, can you imagine the power of a National Pickup Association?

Now that's a scary thought.   All those knuckledragging 4wd'rs running amok...eek!

4:Much of America is inward looking, and management in Detroit is American. They just don't get it that overseas manufacturers, and even their own overseas subsiduaries could possibly be more technically advanced than they are.

Well they brought the Monaro from here to there and renamed it, and was apparently pretty popular, but yes they are extremely US-centric.

Actually I think that this bail out will prove the wrong decision. Chapter 11 would have allowed a
a; A total clean out of under performing management without Golden parachutes.
b; Canning all existing agreements with the UAW.
c; Dumping the dealer etwork free of legal threat.
d; Temporary and permanent plant closures with inimised holding costs.

Agreed, bankruptcy would've cleared the decks for a total new business model without what you've mentioned all the catches that they're will now have to deal with...

The psychology of bankruptcy clearance sale, together with the current (very temporary) drop in fuel prices would have allowed clearance of the huge stockpile of fuel hungry vehicle stock. I have a feeling that by the time they run outof bail out money that opportunity will have passed.  Maybe Goerge W. has left the Obama administration the ultimate ticking time bomb.

.... and when all this money that has been handed out to them fails to solve the issues, it won't be the bush administration that'll have to wear the blame of the failure, it'll be the Obama administration that will have to clean up the mess left behind.

[Mothers Worry]

NASCAR Takes Big 3 Bailout To Spin Alley

From autoracingdaily.com:

NASCAR Takes Big 3 Bailout To Spin Alley

Dec 15, 2008

NASCAR Chairman Brian France has been more than an interested bystander in the recent debates in Washington over the bailout of the U.S. automotive industry. France runs America’s premier auto racing series and his race teams are heavily dependent on financial and technical support from Ford, GM, and Chrysler-owned Dodge, commonly referred to as the Big Three. But to simply say France supports the bailout does not begin to explain the complexity of his situation.

Like many who hail from the South, where NASCAR has its roots, Brian France and the France family openly lean Republican. The auto-industry bailout is largely supported by Democrats, who control both the House and Senate (not to mention the White House, come January 20th). Many of the bailout’s opponents are congressional Republicans from the South, where foreign automakers have opened numerous manufacturing facilities. Herein lies France’s problem: NASCAR needs this bailout or all three U.S. manufacturers participating in NASCAR may be forced out immediately (the exception being Toyota, who is also in NASCAR but not in financial trouble).

So what does a good southern Republican do when your friend is your enemy and your enemy is your—well, not your friend either? You get creative, which is exactly what Brian France did.

France jumped in with both feet this week when he sent a letter to key U.S. Senators asking them to consider all the ramifications of a failure of the U.S. auto industry. The text of the letter claims that if the Big Three are not bailed out by U.S. taxpayers, it will cost 5.5 million U.S. jobs, personal income will drop by $150 billion and, according to the Associated Press’s reading of the letter, “domestic automobile production—even by foreign manufacturers—would likely drop to zero.”

Say what?

France’s claim that even foreign manufacturers’ operations in the U.S. will not survive unless U.S. manufacturers receive a bailout adds a new twist to the debate. It also conveniently solves France’s biggest problem – Southern Republican senators that don’t support the bailout. France is essentially telling them to get on the bailout bandwagon and start supporting taxpayer subsidies for Detroit, lest their state’s foreign-owned automotive businesses dry up too.

The basis for France’s argument comes from comments made this past weekend from Nobel Prize-winning economist Paul Krugman, who speculated that the U.S. auto industry will disappear because of “geographical forces.” The Princeton University professor and New York Times columnist told reporters in Stockholm that the U.S. auto industry “is no longer sustained by the current economy.”

France apparently saw the economist’s comment as the perfect way to convince Southern Republicans, so he wrote them all a letter saying they too have a lot to lose if the bailout is not approved. The problem is that Professor Krugman is saying the U.S. automotive industry is destined to failure for purely fundamental economic reasons regardless of whether or not they receive a massive bailout. Brian France is making a lame attempt to spin Krugman’s statement into an argument for the bailout, while Krugman is actually making an extremely strong argument against any bailout. In fact, Krugman goes on to say that U.S. lawmakers’ consideration of a bailout is only due to their “lack of willingness to accept the failure of a large industry in the midst of an economic crisis.”

To make the point even more absurd, France’s leap-of-faith letter to Senate leaders argues that the foreign-owned U.S. automotive manufacturers should support a massive government subsidy to their competitors so that everyone survives. Is he kidding?

Washington may not be the most intellectual place on the planet, but the people who are trying to get us out of this economic mess are dead serious. The meeting rooms for considering the bailout of the U.S. auto industry are not places where “spin” does any good and the only thing Brian France’s letter is doing is creating less space in Capitol Hill’s trashcans.

Chances are good that Brian France and NASCAR will get their wish and the U.S. automotive industry will get some sort of a bailout, though it will likely come with alternative-fuel research and investment strings attached. Perhaps the next time NASCAR feels compelled to send letters to senators, hopefully it will be to explain how they are embracing alternative-fuel race cars and doing their part to lead America’s automotive manufacturers into a more responsible and sustainable future.

[Everso Biggyballies]

Sadly, and this is only my opinion, but as I see it, with the loans being recalled in 3 months time, unless there is a visible indicator of a return to some sort of longer term profitability it is just a delay of the inevitable.  Given that clearing stocks is an option, but one that will just clear inventory at a probale loss, GM etc have to show a marked reduction in costs....

This, as OT has indicated will only come by cutting staff to reduce the wage bill, with the biggest wage and bonus earners being the ideal target.  In a situation of solvency they have legal obligations to honour pay out arrangements (as I understand it) although I am sure they will negotiate with unions etc to 'be reasonable' for the sake of the company and the future.

The bottom line as I see it is that all, or certainly much of the bailout is going to get swallowed up in the huge payouts (as OT refers to, the Golden Parachute) to the senior management who will be clamouring to get out whilst there are a few $ in the kitty.

Thus yes they might well use the bailout to trim their costs, but the ones who will walk away with a bulk of the money are the fat cats who ultimately managed the company into crisis.  Those that potentially brought everything down with their bonus schemes and elaborate packages of reward will walk away, probably each of them individually many millions better off.   Sure it will rid a lot of the ongoing costs, but in my eyes it is still going to leave the company with little likleyhood of avoiding Chapter 11 come the end of March, because the trading problems will still be there...... yet the fat cats will be fatter.

[Mad Maper 13]

The major thought that is in my head at the moment is...

God bless America the land of  ing up and let every body eles down

[Yoda]

My impression is that Bush has put the big 3 on life support until Obama takes over, then he (Obama), will then be left with the big decisions.

[bpratt]

My impression is that Bush has put the big 3 on life support until Obama takes over, then he will be left with the big decisions.

That's what I was thinking too, and it also gives Bush's mates the chance to get the Golden Parachute.

You know what, Bush is right, the dumb American's will see it as Obama has caused it all, and see him (Bush) as the one who tried to save them.

[Yoda]

Its quite likely that Americans will acquire that perception over time.

My understanding of Obama is that he will do what it takes to prevent the liquidation of the big 3.

Obama's core constituents are from that part of the US and it has often been said that he owes the car manufacturers and the United Auto Union a great deal for their support during the election campaign.

[Prophet][]

You know what, Bush is right, the dumb American's will see it as Obama has caused it all, and see him (Bush) as the one who tried to save them.

Clinton did the same with Bush. Started to sign alot of stupid bills then when Bush got rid of them he looked bad. Its classic Dem vs Rep tactics.

[Mothers Worry]

Its quite likely that Americans will acquire that perception over time.

My understanding of Obama is that he will do what it takes to prevent the liquidation of the big 3.

Obama's core constituents are from that part of the US and it has often been said that he owes the car manufacturers and the United Auto Union a great deal for their support during the election campaign.

On top of that I saw (Vice-President elect) Biden talking about how workers may have to take a pay cut. The UAU and its members may not like that a lot considering their bosses have been ripping off the industry for year with humongous annual salaries and bonuses and the trend looks set to continue.

Entirely unfair on average wage earners and the rank and file..........

[Mothers Worry]

Canada unveils auto sector rescue plan

From AAP via Yahoo!7 News:

Canada unveils auto sector rescue plan

December 21, 2008, 6:11 am

Canadian Prime Minister Stephen Harper on Saturday announced a three-billion-dollar rescue package for US automobile makers based in Ontario, saying it's "regrettable but necessary".

The bailout loans three billion Canadian dollars ($A3.66 billion) to General Motors (GM) and one billion Canadian dollars ($A1.21 billion) to Chrysler, Harper said in Toronto at a joint press conference with Ontario Premier Dalton McGuinty.

"This is a regrettable but necessary step to protect the Canadian economy," Harper said. "Today's announcement is not a blank cheque."

The Canadian federal government will loan 2.7 billion Canadian dollars ($A3.22 billion), and 1.3 billion Canadian dollars ($A1.61 billion) will come from Ontario province, the heart of Canada's auto industry, McGuinty said.

"These are extraordinary circumstances that require extraordinary measures," McGuinty said.

The announcement came on the heels of a $US13.4 billion ($A19.63 billion) rescue package for US automakers announced on Friday by US President George W Bush.

Under the plan, GM will get $US9.4 billion ($A13.77 billion) in two instalments through mid-January and Chrysler up to $US4 billion ($A5.86 billion) this month. The plan could include an additional $US4 billion ($A5.86 billion) from February for GM pending congressional action.

Canada's plan corresponds to 20 per cent of the US support package, representing the country's part in the North American automobile industry, Harper said.

"We have an intention of seeing a restructured industry and we'll do what is necessary to make sure that all stakeholders play ball with that agenda," said Harper, adding that automakers should adjust their market prices and products.

The Canadian plan also goes beyond the US measures by extending insurance coverage for suppliers and creating a new service to support credit access for consumers. These two steps target Japanese carmakers in Canada, such as Toyota and Honda.

Earlier this month, Canadian subsidiaries of the American car companies asked for about $US4.8 billion ($A7.03 billion) from Ottawa to restructure their operations in Ontario.

A whopping 582,000 direct and indirect jobs would be lost in Canada over the next five years if the ailing Big Three US automakers - Chrysler, Ford and GM - shut down their Ontario operations, a study found on Tuesday.

The auto sector and parts industry employ roughly 219,000 Canadians nationwide. The Big Three directly employ about 34,000 workers while overseas car makers employ just under half that number, according to the report by the Ontario Manufacturing Council.

The province of Ontario is the biggest car-producing region in North America, ahead of the US state of Michigan.

[Oldtony]

MW the Detroit and Dearborne plant workers under the UAW are hardly "just average workers" in terms of pay and conditions.  They have the best pay and conditions of any manufacturing workers in the US.  They earn about double the hourly rate paid by Toyota, Honda, BMW, Nissan etc in the plants those companies have, mainly in the South. The reason that Ontario produces more cars than Detroit is that assembly work is carried out there at far cheaper labour rates than in the Detroit/Dearborne plants. Panels and components can be shipped accross the Lake very cheaply to the Ontario plants.
Given the Execs have been ripping off the Industry for years is a problem, but they won't get the US industry into anything like a competitive shape until they break the UAW's power and contracts.
Being a Democrat, and fom Chicago, Obama is going to have some problems negotiating with the Union. I thing giving him that problem is the only reason Geo W put the temporary bail out in place.
Smart Republican politics, dumb economics, and an ongoing legacy of problems left by his administration.

[Mothers Worry]

Smart Republican politics, dumb economics, and an ongoing legacy of problems left by his administration.

I was more looking at it from the point of view of the horse trading between the Unions and the Obama political machine as has been pointed out by Yoda and yourself rather than just wages and conditions. If my history of the JFK era serves me correctly his presidential run was supported by the unions who later felt betrayed (to some extent) by the White House's subsequent actions with regard to the labour market.

(Sorry to make a parallel/comparison between JFK and Mister O).

[Edit]Also if we look at bailouts per se (not just in the auto industry) as EB has pointed out all that happens is the government's are funding fat cat golden handshakes which isn't really bailing out anything. Unless these bailouts have very strict conditions attached to them greed will win out over the need to support the workers.[/Edit]

[Oldtony]

Yeah Mate. That's a bit like making a Senna Hamilton comparison. Never going to be provable but a real gut feeling.  Hope Obama can inspire America like JFK did for the World's sake.
At least Obama doesn't have Jimmy Hoffa, the Teamsters, and the Mafia to negotiate with.

[Prophet][]

Yeah Mate. That's a bit like making a Senna Hamilton comparison. Never going to be provable but a real gut feeling.  Hope Obama can inspire America like JFK did for the World's sake.
At least Obama doesn't have Jimmy Hoffa, the Teamsters, and the Mafia to negotiate with.

He still needs to watch out for the grassy knowl though. Alot of people there still don't want a black president.

[Supersleeper]

This sounds ominous:

From AFP:-

Investors also pushed shares of General Motors down sharply after the company said in a securities filing that its auditors raised substantial doubt about the automaker's ability to continue as a going concern.

Oh dear.