Congress to Big Three: Call us when you’ve done your homework
posted at 1:30 pm on November 21, 2008 by Ed Morrissey
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Despite a couple of reported agreements on bailout packages for Detroit’s three automakers, Congress has sent their CEOs with homework assignments instead. Once Harry Reid realized the level of hostility towards expanding the bailout to Detroit among the general public, he called a halt to the effort for now. Nancy Pelosi blamed the executives for not doing their homework first:
The Big Three are on their own for now.
Congressional efforts to rescue Detroit’s auto makers collapsed Thursday, with lawmakers saying the industry lacked credible plans to return to profitability. …
Democrats in Congress offered only a glimmer of hope, saying they would reconsider a rescue if General Motors Corp., Ford Motor Co. and Chrysler LLC submit convincing turnaround plans by Dec. 2.
“Until they show us the plan, we cannot show them the money,” said Speaker Nancy Pelosi, the California Democrat.
In other words, don’t ask the American taxpayers to subsidize insanity. One popular axiom holds that the definition of insanity is doing the same thing over and over again and expecting a different result. The Big Three’s CEOs came to Washington on expensive private jets, with no plan to rework their financial model which they admit has them on the brink of failure, and asked for $25 billion to continue pursuing the same model that brought them there. The only shock is that Congress didn’t fall for it … this time.
But don’t fret — Congress won’t shock us for long. The Wall Street Journal reports that Congress may offer a “small” aid package, between $5-10 billion, just to get the automakers through to the spring. That “small” aid package equates roughly to the entire market capitalization of all three companies put together. In other words, Congress could just buy out the Big Three with that money.
The UAW chief, Rich Gettelfinger, has a courageous proposal to resolve the standoff:
In a news conference in Detroit, Ron Gettelfinger, president of the United Auto Workers, said the Big Three CEOs should consider resigning if that would help win backing for a bailout.
Why doesn’t Gettelfinger offer his resignation as well? Why wouldn’t the UAW offer to help by restructuring its contracts with the Big Three, which shoulder far greater labor costs than its competitors, making them less competitive? It takes a big, big man to offer someone else’s resignation.
The reasons that have brought the Big Three to the edge of failure are not limited to just management, or just labor, but a combination of both. A bailout would allow both to continue to shirk responsibility. Only when they realize that Daddy Government can’t and won’t rescue them from their own debacle will they make the necessary changes to restore themselves to viability — if they ever will at all. If they refuse to do so now, they probably won’t in the future, either — which makes them a bad investment for taxpayers.
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Congress to the UAW: Don’t worry, we got ya covered. Just a couple weeks of media window dressing should do the trick.
jay12 on November 21, 2008 at 1:32 PM
Bring the UAW up next…let’s see if they have done their “homework”.
right2bright on November 21, 2008 at 1:33 PM
When the union bosses and the auto bosses realize they are both going to lose their jobs…they will work together.
right2bright on November 21, 2008 at 1:35 PM
Unions are infallible. Didn’t you know that?
The big 3 should declare bankruptcy, so they can void the onerous union contracts. Management should resign and start over fresh.
Anything less is just a slow death of the auto industry, instead of a quick one.
lorien1973 on November 21, 2008 at 1:35 PM
What in hell do Pelosi, Reid, Frank, Dodd, Obama or any other of the Democrat nimrods in Congress know about anything?
None of these people know anything of use to anyone. They’re only good at advancing their own political careers through connections, bribery and through the help of the media.
How people with no real abilities beyond skyrocketing ambition and thorough corruption are going to help solve this mess, I wish someone would explain.
Congress is rife with corruption and idiocy and any solution starts with getting Congressional jackasses out of the way.
NoDonkey on November 21, 2008 at 1:37 PM
Rich Gettelfinger is the most useless POS if there ever was one.
the dumb m-f is doing his best to strangle the life out of GM and Ford and his mindless minions follow him without question.
DaveC on November 21, 2008 at 1:38 PM
The democrats are gonna lose 3million votes if they fail to pay back their union masters.
lodge on November 21, 2008 at 1:40 PM
How I Would Use $25 Billion in Taxpayer Money to Save GM.
By Rick Wagoner.
If I got $25 billion in taxpayer money, I would save GM by making better cars and trucks for people to buy. Because I think people will buy more cars and trucks if they are better. Also, I would put free snacks in all of the factories so when the workers get hungry they could have a snack. If there is any money left over I will get a new desk for my office.
The End.
Cicero43 on November 21, 2008 at 1:41 PM
WOW. I actually agree with Nancy Pelosi on something. Never thought I would see that day.
sharrukin on November 21, 2008 at 1:43 PM
Does no one else see the humour in CONGRESS telling DETROIT that they have poor business practices?
Romeo13 on November 21, 2008 at 1:43 PM
Yes! Priceless.
christene on November 21, 2008 at 1:45 PM
DaveC: a useless POS can at least make a mighty fine fertilizer. Ergo, Gettelfinger is actually less useful than a POS.
nico on November 21, 2008 at 1:45 PM
What is remarkable is “That Once Harry Reid realized the level of hostility towards expanding the bailout to Detroit among the general public, he called a halt to the effort for now. Nancy Pelosi blamed the executives for not doing their homework first:”
I emailed every loutish member of congress and told em
“Hell NO”.
We the people need to keep telling our employees in DC how we want our business conducted. Same holds true on approval of the dear leader’s picks for cabinet.We need a bunch of carter and clinton retreads like we need a dose of the clap.
J.Wm
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Col.John Wm. Reed on November 21, 2008 at 1:49 PM
One would hope union bosses and auto bosses were smart enough to realize that even a pay cut of say 10% is better than the unemployment line.
Both sides need to make some concessions, the workers and their unions need to take a pay cut of at least 10% as well as a cut in their retirement benefits and health insurance, the auto bosses need to eliminate all unneccesary spending (bonuses, golden parachutes, etc.) and come up with a solid business plan that details what they are going to change in order for them to be able to compete with foreign car manufacturers.
If they can do the above then I wouldn’t be against a bailout, but they must do their part and move beyond their past mentality and get up to speed in the changing auto market, something they have failed to do and is why they are in the position they are in now.
Liberty or Death on November 21, 2008 at 1:49 PM
The bad side is there are many retired non-union people that are currently drawing their pension from an over funded pension fund (in GM’s case anyhow) that would lose most if not all of it. That’s a tough pill to swallow.
markus on November 21, 2008 at 1:50 PM
You can ask, but it ain’t gonna happen. Corruption from Detroit and Chicago only gets worse, it never gets better. And now we can add Washington to that list.
Griz on November 21, 2008 at 1:50 PM
Ron Gettelfinger should also resign from the UAW, which held the Auto industry hostage to their demands for higher wages, twice what they should have been receiving. Now that their failed “wealth grabbing” policies have brought the industry to its knees they are wanting us to bail them out, yet we are the ones they have been screwing over with higher prices being charged for our vehicles.
DL13 on November 21, 2008 at 1:51 PM
Don’t give them any ideas. I’ll bet Maxine Waters is already salivating at the prospect of a brand new, top of the line, free, Detroit product each year. They would put Barney Franks in charge of quality control.
a capella on November 21, 2008 at 1:52 PM
There are striking (no pun intended) similarities between all three entities.
Congress
UAW
Auto Manufacturers
1. Gross mismanagement
2. Unparalleled greed (especially 1 and 2)
3. Correct all problems with more money.
All three are at the root of most problems in this country. Economy wise and societally as well (something for nothing mentality).
May the ALL burn in hel# when their terms are up, as they’ve done enough damage here on Earth.
Tim Zank on November 21, 2008 at 1:52 PM
Why don’t we just buy the companies and then give them to the UAW to run?
Then they can fire the bosses that they blame and can decide to pay their members anything they want?
That money is as good as gone anyway, right?
Sinner on November 21, 2008 at 1:53 PM
why doesn’t the UAW pool their resources and buy a majority in GM?
joey24007 on November 21, 2008 at 1:54 PM
This much is true. The auto manufacturers really did just show up and say “give us money.” The problem, of course, is that any credible plans involves cutting jobs, lower wages, and restructuring pensions. That involves the UAW who have purchased far too many Democrats to seriously come to the table in good faith. They expect Levin and all their other “staff” in Congress to protect their interests.
highhopes on November 21, 2008 at 1:54 PM
I’m guessing because they know it isn’t a good investment.
highhopes on November 21, 2008 at 1:55 PM
One problem with that is that there are many non-union retirees that would lose most if not all of their pension (which, in GM’s case is over funded)
(sorry if I’ve double posted)
markus on November 21, 2008 at 1:56 PM
This whole sordid affair almost wants to make me never buy an American car again…
DNRtheDNC on November 21, 2008 at 1:56 PM
Kinda like a big, er, little man like Olberdouche.
Dr.Cwac.Cwac on November 21, 2008 at 1:57 PM
Gawd,another brilliant idea,from Nancy
“IT JUST MIGHT TAKE A WOMAN TO CLEAN THE HOUSE”!
Pelosi,’The smartest woman in the universe’!
————————————————–
Whats this weeks approval rate? 6,7 per cent!A hem.
(Sarc!).
canopfor on November 21, 2008 at 2:00 PM
Damn and I always thought the members of Congress were the smart ones.
ROTFLMAO
Thems in Congress are the most usless humans on earth.
Rick007 on November 21, 2008 at 2:00 PM
The only way to save the Big 3 is to crush the UAW, since the products are just as good as their competitors and their sales numbers are little different from the “Japanese,” “Korean,” and “European” manufacturers. It’s the fact they freaking lose money on every vehicle sold, and that is squarely on the shoulders of the UAW goons.
Management can take a flying leap as well, but I’ll have more fun watching the UAW suffer, if that ever happens.
Anything else, without revoking the concessions to the thugs in the UAW would be pi$$ing money away.
PimFortuynsGhost on November 21, 2008 at 2:01 PM
Congress= We f— it up and you fix it if it can be fixed after we touched it.
Rick007 on November 21, 2008 at 2:02 PM
Maybe the CEO’s will come back to Washington on a bus and run over Pelosi and Reid. They love to act like they’re RESPONSIBLE with OUR money. Thieves.
marklmail on November 21, 2008 at 2:04 PM
Yeah, and perhaps Reid isn’t quite as dense as I thought.
One worry I have about a “bailout” or restructuring or what have you is that the healthcare costs and pension liabilities may get sloughed off onto the federal government, i.e. the US taxpayer. And then hey, with Medicare & Medicaid and S-CHIP and UAW all on national healthcare, soon enough there are only going to be about 5 people in the US not on socialized medicine.
rbj on November 21, 2008 at 2:05 PM
Regarding Ford.. I would ask the CEO to either move to Michigan or resign. none of the private plane flying back and forth to where you live on the weekend.. you are working for effing Ford, for crying out loud.. you were picked to help save Ford… were even the Oval was up for bid at one time.. so effing lead it or get out of the way.
/rant off.. I feel so much better :)
DaveC on November 21, 2008 at 2:06 PM
If I could get away without paying for Nancy’s and Harry’s salaries, I would. It’s my taxes, after all, that lines their pockets.
I still will never purchase a Big 3 piece of junk
Good bye, good riddance, thanks for the fish
Kini on November 21, 2008 at 2:08 PM
I fear Congress will cave.
How many people in Congress understand basic economics or have run a business? 3 or 4 perhaps.
And anyway, half of them think it is all ‘their money’ anyway.
Appalled.
Ares on November 21, 2008 at 2:08 PM
Let me see now.
1. If we made sure people could pay for the housed they purchased there would be no howsing bubble to burst. If they didn’t sell the cost would have to come down.
2. If we drilled for our own oil and Nat. Gas we wouldn’t have the Auto Mfg;s going bankrupt. Also 700 Billion more in our pockets instead of now having to borrow from the Saudies.
HMMMM both caused be the Dam o crats.
Rick007 on November 21, 2008 at 2:09 PM
“since the products are just as good as their competitors”
I haven’t seen an American passenger car that holds a candle to what the Japanese and the Germans and hell, even what the Koreans are making.
The interiors of American cars look exactly like what they looked like in the 80s. I rented a couple of American cars last summer and it was like climbing into a time capsule.
And American passenger cars are overpriced when compared to similar foreign cars.
I say let the American car industry be buried, it died decades ago. They have been producing crap for 50 years and it’s time to bury the corpse.
NoDonkey on November 21, 2008 at 2:10 PM
HMMMM
The Govt. is going to run the Auto Mfg’s like the do F May and F Mack.
Sounds good to me. “NOT”
Rick007 on November 21, 2008 at 2:12 PM
Does anybody here remember the Chevy Vega?
Planned obsolescence?
The Vega was a car with an aluminum engine. Not today’s high-tech one, but a rather primitive one that was subject to serious issues due to overheating. We’re talking the early 70’s here.
In lawsuits, GM execs admitted to deliberating selling a substandard product to “hook” young buyers into the Chevy brand. And when the engine failed after 2 or 3 years, offer an “upgrade” into a much more expensive car.
The executives at GM have always been “tone deaf” to anything other than their perks. The UAW has been similarly tone deaf to any suggestion that they get realistic, given the disparity of dollar run rates between the Big 3 and Toyota/Honda.
As a former GM car owner, who was repeatedly shafted by GM, their managers, their dealerships, and their mechanics, I could give a damn if they file for bankruptcy protection or simply close down.
There is a reason that I drive exclusively Toyota’s and Honda’s.
georgej on November 21, 2008 at 2:13 PM
I don’t want GM to go under.. I would like to see a massive re-structuring.. with Gettlefinger out on his arse..
because I’ve always have had GM trucks.. Nothing wrong with Ford or Dodge.. i’ve driven them both..
but I LOVE my GM trucks.. just the redneck in me
DaveC on November 21, 2008 at 2:14 PM
My fear is the whole “bring us a plan” thing is all about making this a bipartisan handout. It won’t matter then if the 50 Billion is flushed away there will be no blame for one party or the other. The GOP has to stand their ground and put this on the Libs unless the UAW brings some serious and real concessions to the table. Otherwise let it go until after the new leadership is in place and let the Dems. take the credit or blame.
OldeSCfan on November 21, 2008 at 2:18 PM
Maybe it’s a fish wrapped in newspaper.
whitetop on November 21, 2008 at 2:19 PM
The Democrats aren’t stupid! To quote Mark Steyn “By 2012, it will be more than half on the dole, and this will be an electorate where the majority of the electorate will be able to vote itself more lollipops from the minority of their compatriots still dumb enough to prioritize self-reliance, dynamism and innovation over the sedating cocoon of the Nanny State.”
Who do you think the unions and welfare recipients are going to vote for?
The bailout is a bad idea as long as the UAW still lives. The higher management of the big 3 however are no prize bull themselves. I fail to see how giving cash to the morons who got us into this will achieve anything.
sharrukin on November 21, 2008 at 2:27 PM
Michael Medved, who ranges from insufferable to excellent, had a brainstorm (Can I say that word?) that Mitt should take over as GM’s CEO.
He is a turnaround artiste, and if he did manage to turn GM around (no easy task) he would have one more huge accomplishment under his belt if he decides to run again in 2012 (Pssst – Huckabee: BOO!)
MM did not say this, but the downside is that Congress and Obama would do everything they could to insure that Mitt failed, as he would pose a huge threat to them if he did succeed.
Buy Danish on November 21, 2008 at 2:33 PM
Why did that stupid woman require the same thing from the banks?!
Argg!
Badger40 on November 21, 2008 at 2:36 PM
oops! Why
diddidn’t that stupid woman require the same thing from the banks?!my bad
Badger40 on November 21, 2008 at 2:37 PM
So Pelosi and Reid are going to use their limitless wisdom and business acumen to evaluate recovery plans by the U.S. automakers. It’s the blind led by the blinder.
Cicero43 on November 21, 2008 at 2:43 PM
Sell them to China and let the unions renegotiate their contracts with the PRC…
blue13326 on November 21, 2008 at 2:45 PM
A number of knowledgeable people, including unlikely allies Mitt Romney and Robert Reich, have suggested that what Detroit needs is a good ol’-fashioned bankruptcy:
Martin Feldstein has added his voice as well:
I think that this is how it will have to go down.
Paul_in_NJ on November 21, 2008 at 2:46 PM
Your comment seems tongue in cheek, but there is every reason to press your elected representatives to bring all parties in for sessions in front of the camera. The result could be embarassing for both the UAW and Democrats, but it sure would be worthwhile for the public to get a feeling for the true nature of the problem.
bryanmyrick on November 21, 2008 at 2:50 PM
Pelosi, Reid, Frank, Dodd and all of the other bought and paid for “representatives of the taxpayers” in DC are simply putting out the appearance of doing the right thing here. They will cave soon enough to ensure that they retain the union dollars and votes.
We are already on the hook for the retiree’s benefits since the government is the guarantor so why not let the bankruptcy process be used to restructure these outmoded, top heavy dinosaurs known as the big three? Is it because it would be too complex or does it have something to do with the $400 million donated by the big three and the unions during the recent elections?
Dukehoopsfan on November 21, 2008 at 2:52 PM
I’m assuming that Gettlefinger was in Washington for the testimony. Has anyone questioned whether HE flew in on a private plane? The unions seemed to still be getting a free pass in this mess.
Aggie85 on November 21, 2008 at 2:55 PM
seemed = seem
Aggie85 on November 21, 2008 at 2:56 PM
One has to wonder what the MOB bosses are going to do to the fool Gettelfinger for killing the goose that layed the golden egg? I would be looking for some bulletproof underwear! Couldn’t happen to a better POS.
nukeemnow on November 21, 2008 at 2:57 PM
georgej on November 21, 2008 at 2:13 PM
I’ve had nothing but trouble with American cars, and so have most of my friends — Heating & cooling issues, short-lived fuses and wires fried to a crisp, frighteningly easily dentable fenders and bumpers, faulty ignitions, bloody turn signal handles coming off in your hands! And there’s nothing like the feeling when you are on your way to giving a presentation, have just coasted downhill to an intersection with a traffic signal, the light turns green, you put your foot on the gas to go up the hill in front of you, and the engine accelerates — but the car doesn’t move. Thanks, Mercury Topaz!
I could feel confident buying American, but I’ve been burned too many times. Even when things seem hunky dory when the Detroit models are new, just wait a few years. Remember the commercials for the Ford Escort, trumpeting its status as the world’s bestselling car? How many old Escorts do you see on the road? (Insert Heidi Fleiss joke here.) Ditto the hyped “new GM” Saturns from early in the 21st Century? What about the Ford Focus, thought to be part of an American renaissance at the time, but eventually had to be recalled?
Right now, I’m driving a twenty year old Japanese car that I will have to replace because of axle damage caused by San Francisco city potholes. I’m looking at cars made in Japan, Germany, and even Korea.
Never mind “rain on your wedding day” — THAT’S what I call ironic.
L.N. Smithee on November 21, 2008 at 2:58 PM
Any form of bailout – not just auto, but investment banks, mortgage holders, you name it – is immoral. It’s coercive taking money from one party to give to another. There are degrees of immorality, but offering to rob Peter to pay Paul is grossly worse when Paul impoverished himself.
JDPerren on November 21, 2008 at 3:09 PM
Not just a business plan, Pelosi (well, actually the general public) should demand a detailed cost-accounting on the previous 25 billions they just spent.
Sir Napsalot on November 21, 2008 at 3:22 PM
It was refreshing to see the interviews on the Nightly News with the Hyundai workers down in Alabama. They were UAW free and happy as clams. Business is good, they are compensated fairly, and they don’t want anyone messing with their good thing. I have a feeling Card Check would have a problem down there.
rhodeymark on November 21, 2008 at 3:26 PM
PS – who is this douchenozzle in the trackback ping? A UAW piglet? Eat corn off the ground, piglet!
rhodeymark on November 21, 2008 at 3:28 PM
Congressional efforts to rescue Detroit’s auto makers?
Perhaps they should rescue Detroit first?
try again later on November 21, 2008 at 3:42 PM
Wow, your trackbacker has a problem. I hope he can get help.
Sinner on November 21, 2008 at 3:50 PM
I am amazed that GM, Ford and Chrysler is the sum total of the auto industry in many people’s minds. There are several other auto manufacturers that build and sell lots of cars in the US. Aren’t they part of the auto industry, or are they the bastard step-child of Detroit?
If the UAW was truly interested in saving the auto industry, they could loan the auto industry the $25B as an investment for the union retirement fund. That way the auto industry and the UAW would have ownership in making the auto industry a success. When everyone has a dog in the hunt, then its always in everyone’s best interest to make sure that the end results are successfully achieved.
belad on November 21, 2008 at 3:57 PM
What a cowardly crap-weasel!! **** you UAW!!
Richard Romano on November 21, 2008 at 4:01 PM
Whoa! “Ed ‘The Tool’ Morrissey”? Since when did they start calling you that?
Andrew Sullivan must be so jealous!
L.N. Smithee on November 21, 2008 at 4:03 PM
I can remember the Carter years and the auto industry crying …. the union workers made more money on average than most anyone and I can remember telling people: “hey, auto workers, YOU go buy your crappy cars with your big salaries.”
Not much different today. Auto manufacturers in right-to-work states are doing fine. Michigan is a cluster eff, socialist, sharia-bound, sh*tehole.
Stay away from MY money and clean up your own marxist mess.
Let’s roll.
ex-Democrat on November 21, 2008 at 4:32 PM
I wonder if our onion-less Repubes will bring up this idea?
I think it’s great….let’s roll.
ex-Democrat on November 21, 2008 at 4:34 PM
Congress should give em just enough money for them to post some big ‘FOR SALE’ signs at their various plants…
droofus on November 21, 2008 at 5:15 PM
Not so fast…. She never actuially said anything about being a GOOD plan, or a FEASIBLE
UltimateBob on November 21, 2008 at 5:31 PM
[sorry, accidentally submitted comment before it was complete]
Not so fast…. She never actuially said anything about being a GOOD plan, or a FEASIBLE plan. Just any old plan will do.
Pelosi (or pretty much any Democrat) wouldn’t know a good plan if it jumped up and bit her on the nose.
UltimateBob on November 21, 2008 at 5:33 PM
I could back it if Congress voided the union and upper management contracts in the process — but unfortunately it will probably end up being a ‘Union Bailout’ that gives the big 3 money in a ‘jobs for the sake of jobs’ work program. The new WPA making cars people don’t want.
David
LifeTrek on November 21, 2008 at 7:33 PM
Well, Reid and Pelosi are right to make the automakers come back with a proposal, but they should have included the union heads too.
One of the key factors causing the problem is the large legacy benefit cost to retirees and ex-union employees, a second is the union’s total compensation and a third is the ridiculuous union work rules None of these can be resolved without the union.
Last, I doubt whether Reid, Pelosi and the Democrats will require concessions from the unions, so anything the automakers come up with, will likely not resolve the problem long term.
Dr. Bob on November 21, 2008 at 8:36 PM
Fannie Mae, Freddie Mac, millions of sub-primers, Detroit Big Three, United Auto Workers Union…all being subsidized by taxpayer dollars for democrat votes. Am I missing something here???
byteshredder on November 22, 2008 at 10:56 AM
Congress needs to tell the Big 3 and the UAW one thing, ” No reforms, No money.”
The UAW needs to be disbanded and all Big 3 salaries etc should be scaled back to the same as what the foreign car makers pay their employees. Then if things don’t turn around for them maybe we might help them out, —-or not!
ic1redeye on November 22, 2008 at 2:40 PM
Let me see if I’ve got this straight:
Nancy Pelosi is asking the Big 3 to send her a business plan that Congress will review and approve? Is that correct? Congress…
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!
Congress knowing a workable business plan…HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!
OK, come on now, what’s the real story?
Amendment X on November 22, 2008 at 9:29 PM
Nothing new here, same democrats, same plan using our money to secure their jobs/votes.
SPIFF1669 on November 23, 2008 at 9:25 AM
They’re transplants that can’t combine any bit of reliability with the affordable muscle of Detroit designs.
It’s also a reason to buy one even out of spite – to cancel you out. Besides, at least with a Cadillac, Chevy, or any of the Ford 6/8cyl makes, I don’t have to drop $40,000 to get jaw-dropping performance for less than a transplant.
sethstorm on November 26, 2008 at 6:33 PM
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