Automakers seek increase to government loan program

B’Man: My, how convenient that the government will bail another Big Money entity out. Amazing how they are asking for even MORE money. But let me ask the most obvious question: why loan money or bail these asshats out when they have made so damn much profit all these years and made a conscious decision NOT to upgrade their plants with their own money, enabling even more profits and preparing for what they knew was coming but decided not to pursue (for monetary reasons, I am sure)?

Same for any military contractor.

As a matter of fact, the same for ANY corporation. Why hasve we, as citizens, allowed the corporations more power and influence than we, The Citizens, have ourselves?

On the front page of its Business Day section, the New York Times (8/23, C1, Bunkley, Vlasic) reported that General Motors (GM), Ford Motor, and Chrysler are seeking “a significant increase in the $25 billion government loan program authorized last year to help them build more fuel-efficient vehicles.” According to the automakers, “the loans would allow them to overhaul their plants more quickly than they can otherwise afford to in a dismal time for the United States auto industry.

The Wall Street Journal (8/23, A3, Terlep, Mitchell) quoted GM spokesman Greg Martin as saying, “There’s a real urgency in that all of the progress we have made on these new vehicles could come to a standstill if we can’t get capital at reasonable rates.” According to some reports, “the domestic auto industry now seeks between $40 billion and $50 billion. The automaker’s would like to have a funded plan in place by the end of 2008.

“The industry is urging Congress to appropriate the funds before the November 4 election and asking the energy department to complete the necessary regulations before the end of the year,” the Financial Times (8/23, Simon) added. “The scheme, known as the Advanced Technology Vehicles Manufacturing Incentive Program, would be available to all vehicle manufacturers with operations in North America, as well as parts suppliers.” Yet, GM, Ford, and Chrysler “would be by far the biggest beneficiaries. They see the loans as a way of bridging a cash shortage that is likely to continue for at least the next 18 months.”

According to the AP (8/23, Thomas), “the auto industry’s future has been a top issue in Midwest battleground states key to the presidential race.” Even though Sen. John McCain (R-Ariz.) “had opposed the retooling efforts, arguing that his $5,000 tax credits for consumers who buy fuel-efficient vehicles and a $300 million battery prize would accomplish the same goal,” he said on Friday that “Congress should fund the loan program in the energy bill.” Sen. McCain’s Democratic rival, Sen. Barack Obama (D-Ill.) “previously outlined support for the loans, and a 10-year, $150 billion program for green manufacturing. Obama’s campaign said Friday they would support the $50 billion loan program.” Auto industry officials maintain “that the loan program would not represent a bailout, but would be similar to aid lawmakers have given to Wall Street investment banks and struggling mortgage firms.

The Detroit Free Press (8/23, Hyde) added that “Detroit automakers, the UAW (United Auto Workers union), and their allies on Capitol Hill will launch an all-out blitz over the next few weeks for up to $50 billion in government loans over the next three years.

B’Man: How nice it must be to have the government bail out all these rich bastards when they could have helped themselves. I think I’m going to shit a brick the next time I hear a McCain supporter talk about welfare cadillacs when it is the business sector that gets more help than ANY citizen alive.