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Mo Money
by Sudhama Ranganathan
Sunday, Dec. 07, 2008 at 5:20 PM
uconnharassment@gmail.com
Here they come again with newly minted plans and cartoonish entrances even though they ditched the corporate jets and drove their own vehicles this time. The Big Three returned with restructuring plans intended to show their seriousness about addressing concerns surrounding a bailout. Job cuts were on deck unfortunately, although the people responsible for policies which led to people losing their jobs are attempting to stay on. Plant closings were also on the table as might be expected.
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Each company had requests with regards to what they claimed to need from the taxpayers to keep their companies afloat. GM wants “an immediate temporary loan in the amount of up to $4 billion in the month of December 2008.” Next they wish to “draw up to an additional $4 billion in January to fund operating losses caused by very low levels of North American production.” Further, they request “if industry conditions do not improve materially, GM would access another $2 billion.” By the end of the first quarter 2009 they seek up to $12 billion in short-term loans and $6 billion in credit.
Chrysler is looking for “a $7billion secured working capitol bridge loan by December 31, 2008.” Ford wants “a ‘stand-by’ line of credit in the amount of up to $9 billion” incase their financial situation fails to improve. All told the US taxpayer is looking at loaning the three companies $34 billion.
What they didn’t talk about, aside from all three CEO’s stepping aside and letting new ideas come in, was what would become of the anti fuel efficiency standards lobbying they have been involved in for so long. This of course has not simply involved scheduling appointments on the Hill and sitting down to chat about how they can continue manufacturing and selling cars against car buying trends and have the government give them handouts to aid them towards their effort. It also involves money and lots of it.
From January to March ‘08 the Big Three burned through $20 million dollars lobbying congress against mandating tougher fuel efficiency standards. That’s up from the entire amount spent last year, if the trend continues, of $28 million. In other words while we were struggling to get by with higher unemployment, a sinking housing market and skyrocketing gas prices during a recession they were spending millions to keep us in the hoc. Instead of this they could have been investing that money in restructuring and manufacturing upgrades to produce cars Americans wanted to buy.
An example of this can be seen in the Big Three’s efforts to fight Florida’s proposed clean car rule. The rule is intended to raise standards for emissions standards for new cars and trucks. It is projected to save Florida motorists $1,000 to $2,300. By retooling their manufacturing sector The Big Three could have been in a much better position right now and perhaps even been back to producing cutting edge vehicles. Instead of this they’ve been trying to find ways to rip us off in dire financial times by essentially lobbying congress to repress PC’s and laptops so they can peddle the abacus.
The American taxpayer should not be forced to foot the bill for this practice at all. It is precisely this sort of behavior which angered and turned off American consumers. Part of the proposed changes put forth by Congress is for the Big Three to desist all efforts against this measure in Florida. I believe they should stop the practice all together for the duration of any loan they may or may not get from us. Otherwise, it would amount to the auto industry asking us for money to, in part, lobby to rip us off and continue to chase their tails. No way, no how.
That will lead us right back to them asking us for mo’ money and us ending up with mo’ money problems. Actually, they’d be lucky to get an audience at the demolition of Chrysler Headquarters let alone another one on Capitol Hill. During the sessions one Senator said, “nothing concentrates the mind like a death sentence.” He should back up those words and put a cap on just how many dollars they will receive all told as well as how it will be spent with regards to lobbying.
Start up companies, like Tesla in Silicon Valley, have successfully created electric cars which can travel 225 miles before needing a recharge. Why not put some of the money towards helping companies like them create cars people want and jobs people need. As they represent the future of the American auto market it might be a wise investment, especially seeing their willingness to respond to the markets instead of attempting to force American markets and American buyers to respond to them.
To read about my inspiration for this article go to www.lawsuitagainstuconn.com.
www.lawsuitagainstuconn.com
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