U.S. bailout plan rejected by Senate
December 12, 2008 by George Skentzos
The U.S. auto industry bailout plan has failed to pass through the Senate overnight, worsening the prospect that General Motors and Chrysler LLC may collapse.
Senate Majority Leader Harry Reid said quite simply that it would be a “very, very bad Christmas for many Americans”, dreading the repercussions of this decision on Wall Street.
Already in Asia, the Nikkei stock market has fallen by more than 5.5 percent, sparking only the first consequence of the failed bill.
The bailout plan received the majority vote; however fell seven votes short of the number needed to consider the measure.
This rejection leaves GM and Chrysler LLC in a difficult position, the time has come to take desperate measures in order to raise the combined $11 billion they say they need this month to stay solvent.
The stumbling block which prevented the plan from passing the Senate was a dispute over when UAW workers would consent to have their wages reduced to match those paid to non-union workers in U.S. import-brand factories – having rejected a 2009 deadline for the parity demand.
General Motors has said it may not have enough money to operate by year-end, a sentiment echoed by Chrysler LLC.
“We will assess all of our options to continue our restructuring and to obtain the means to weather the current economic crisis.” said a spokesperson for GM.
Economists and researchers have warned that a failure of one or more of the car companies will shatter a U.S. economy already in recession.
Together the Detroit 3 CEOs say they need at least $34 billion in federal money to get through the recession that has seen U.S. new vehicle sales drop to 25-year lows.
Ford said it doesn’t need immediate help but may need a $9 billion line of credit should the economy weaken further or one of its domestic rivals collapses.
One last hope remains for the bailout plan however, with Congress able to reintroduce the new legislation early next year when Democrats have a wider majority in the Senate.
Print it: 
Heres a thought Tomas dont enter the Holden and Ford conversations and then we wouldn’t have to kick your arse after you insult us! Cause mate you wont control me !
Tomarse; dont bother the rest of us!!
Okay Tomas79 I won’t bother you anymore… I guess you’ve got enough “personal” problems of your own…
Learning how to understand what is being said for one as well as learning to admit when you are wrong.
It won’t happen over night but it will happen… you’ll get there
There you go off topic personal insults!!
By the way, when did you ever kick my ass at anything??!!
Caradvice, the above posts demonstrate exactly why they should be banned!!
Wheelnut, BM, leave it. If you rile Tomas up any further he’ll injure himself.
On topic, it seems that old mate Bush will tide the manufacturers, particularly GM and Chrysler over just long enough for Obama to have to deal with the situation. Personally I predict that by next Christmas we’ll have the ‘fairly large two’, with Chrysler either obliterated or sold into lots of little bits. It seems bizarre that Cerberus would pay so much money to buy Chrysler, and then not let them tap the mountains of cash reserves that Cerberus have to turn the sinking ship around. Chrysler has already stopped development on many new models, in the car industry thats suicide. When your cars don’t sell because they’re outdated and inferior, not developing new models to save money isn’t going to help you.
Exactly! CA please ban the Di_go re-incarnation Tomas79.
Bavarian : what is equally un-Australian is critism aimed at local Toyota operations but i suppose you had given little thought towards that while playing the heart-strings.
Who or what is Dingo apart from being a native Australian wild dog ????????
Geni : many American citizens believe the BIG 3 will emerge as the Medium 2 and considering the intense restructuring programmes required including sales or shutting shop of numerous subsidaries, it appears the foresight is on the money .. literally
Oh, hi Dingo. Your comments have been tracked since early this morning, under a variety of nicknames as usual. Should prove interesting reading for action to be taken against you under the Commonwealth Broadcasting Services Amendment Act 1999.
You can stop any time. The boys have got enough.
Some people just don’t know when they should give up…
Falcodore Says:
December 14th, 2008 at 5:56 pm
“I mean how premium can they be when the top-line Lexus uses the exact same DSC system as a base model camry?”
Just like the W427 uses most of its parts from bottom feeder commies? Want me to list specifics?
Bavarian Missile ( . ) ( . ) Says:
December 14th, 2008 at 7:26 pm
“thats thousands of jobs lost everywhere in Australia. Good to see in these hard financial times people just want to see the worst happen to those they really have no idea of how much they contribute to OUR great country ,but hey be un-Australian.”
You sound just like Wheelnut – when will the Aussie’s ever be profitable? Five years? Ten years? How many more billions of tax payer dollars is needed?
Wheelnut Says:
December 14th, 2008 at 7:50 pm
“So regardless of where your allegiances lie; All Australains should be proud of how well the locals have done and are doing..a s they are all receivng international recognition to a varying degree”
That’s because of handouts mate. Could they do it on their own two feet like numerous other SME’s around the country who succeed with no tax payer assistance and reliance on fleet sales??
Falcodore Says:
December 14th, 2008 at 10:07 pm
“Toyota will not pick up Ford and Holdens slack, at least not to the extent you think because there are ppl out there who actually ENJOY driving their cars. Something Toyota and their fanatics just dont seem to compehend.”
Judging from sales those people are in the minority mate.
Andrew M Says:
December 14th, 2008 at 10:18 pm
“I also read that the Ford guys that worked on the FG received 2 top notch engineering awards for their work. ill have to dig up that article……..”
Please do – I’d love to see how that stacks up to pioneering work in medicine and nanotechnology at some of our universities. Don’t make yourself look like a half-wit by talking about engineering awards for cars in Australia.
“You arent fooling anyone, you are here to stir rubbish for your kicks only. What a sad life it must be”
Like yours? I bet you drive a commie or falcon and think you’re something special. You need to speak to your lion badge loving friends on here about stirring rubbish – I can quote you if you like.
Bavarian Missile ( . ) ( . ) Says:
December 14th, 2008 at 10:30 pm
WTF ????????? So we shouldn’t be proud of what this country has achieved already ?We may not have the population from where you originally came from Tomas but WE true Australians are proud of what this great Country has developed for the small population it has,not proud of it then I’m sure there is a plane back to where ever you came from! Im even proud of the fact that we manufacture boring Camrys,means we are capable of doing so to the standards Toyota desire!”
Cue the violins.
I’d be more proud if our 100% American owned Ford Oz and GMH could run a business without resorting to tax payer handouts. Love all the brains on this forum who argue with facts.
Oh yeah, and if they could build a decent 4WD for our country – but that’s asking too much isn’t it?? We need to rely on the Japanese for that.
If I presented the current GMH or Ford Oz business model to my peers at the AGSM I’d be laughed out of the university!!
Wheelnut Says:
December 14th, 2008 at 10:47 pm
“That on its own indicates how much Holden meansd to GM compared to what Toyota Oz means to Japan doesn’t it”
And look where the brains trust of GM is at the moment! They’re great business people aren’t they!
Bavarian Missile ( . ) ( . ) Says:
December 15th, 2008 at 11:53 am
“As I said last night what type of person would like to see Holden and Ford go to the wall ,those that obviously have no true support for their country and prefer to be dictated by the world largest car company that will move its operation back to Japan anyway!”
Stop waffling on with your mock patriotism. I, like many Aussies, would prefer to see taxes spent on other areas of society, not on companies who run completely unprofitable business models. Holden and Ford can go to the wall – it’s happened before and the country was fine.
Bavarian Missile ( . ) ( . ) Says:
December 15th, 2008 at 12:29 pm
“When will you start stating facts not opinions………..”
And when will you and the other intellectuals on the board do the same? Want me to pull out the numbers on government assistance to the Aussie car makers?
Wheelnut Says:
December 15th, 2008 at 4:04 pm
“If Tomas stops bagging Holden at every given opportunity I will stop bagging Toyota at every given opportunity.”
Are you six years old mate?! Grow up! This is the fifth or sixth childish comment you’ve stated on this blog.
Bavarian Missile ( . ) ( . ) Says:
December 15th, 2008 at 6:24 pm
“Hahaha Tomas I never got emotional I laughing at every one of your silly opinions and even your insults ! Just like a woman to wan the last word!hahahahaha”
Damn, you’re just as immature as Wheelnut.
“Bottom line is you boys dont like Ford or Holden and will be glad to see the back of them,thats just un-Australian.”
No it’s not – it’s un Australian to keep asking for handouts like beggars, that’s what Holden and Ford are good at right?
Wheelnut Says:
December 15th, 2008 at 7:05 pm
“I mean have you read what youve written over the past couple of days Tomas?”
Have you? Did your mother let you onto the PC for a few days or something??
Realist,
What a load….
Why is it you conveniently leave Toyota our of all of your comments re Handouts??
Who exactly has taken the biggest slice of the handout pie so far? Toyota.
Who has addmitted that handouts are neccessary to build a hybrid (designed elsewhere) in Aus? Toyota.
Who will be the next company to pull out of manufacturing in Aus? Toyota.
Look I agree that some people have “gone off” on this (and other) posts, but you have only critisied one side. And the other side was just as bad (or worse).
You have just proven that you are just as bad as them. Don’t be a tool.
the economy bad anyway, whatever.