GM and Chrysler Get Auto Rescue Loans-$17 Billion

Dec. 19 (Bloomberg) -- General Motors Corp. and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush.

A bankruptcy is unlikely to work for the automakers at this time and can’t be allowed, Bush said at the White House.

“These are not ordinary circumstances,” Bush said. “In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”

The money will be drawn from the Troubled Asset Relief Program and the automakers will get an additional $4 billion from the fund in February for a total of $17.4 billion in assistance, according to a statement from the Bush administration. The funds would allow GM and Chrysler to keep operating until March.

Winning the assistance is a reprieve for GM, the biggest U.S. automaker, and No. 3 Chrysler after they said they would run out of operating funds as soon as this month. Bush is stepping in after Senate Republicans’ refusal last week to take up a House-approved rescue raised the prospect of a company failure costing millions of jobs.
...More

White House mulling TARP funds for automakers

White House mulling TARP funds for automakers

Automotive News

WASHINGTON -- The Bush administration, signaling a possible shift in policy, will consider using money set aside for the rescue of financial institutions to make emergency loans to automakers, the White House said this morning.

The word comes in the aftermath of stunning rejection by the Senate last night of legislation to provide $14 billion in emergency loans to prevent the collapse of General Motors and Chrysler LLC.

President Bush and his appointees have resisted using any of $700 billion approved in October for financial institutions to provide industry help under the Troubled Asset Relief Program, or TARP. Democrats contend the failure of one or more automakers would have widespread devastating economic effects.

It's unclear when the White House or U.S. Treasury will make a decision about using TARP funds for the auto bailout.

Of the first $350 billion in the TARP fund, about $15 billion has not yet been committed, wire services reported this morning.

That happens to be the amount GM and Chrysler say they need to survive to the end of the first quarter of 2009.

To access the second $350 billion, the administration must seek fresh approval from Congress.

U.S. Sen. Carl Levin, D-Mich., said the effort to provide the emergency bridge loans remains "very much alive."

"I am encouraged that the White House said today that they will consider other options to assist the auto companies, including use of the TARP program," Levin said in a statement.

"Use of TARP funds is the fastest, most feasible, most immediate and most certain approach to provide the emergency bridge loans needed by the auto companies....More

It's Detroit Against The World! Turn in your foreign car or be boycotted!

Yes, now we know how little the rest of America cares for Detroit, Michigan and The America Auto Industry! We have been beat up time and time again by the US media and international media, but never did i think Americans of the South and West hated us so much.

What is more important for Detroit and Michigan is that we remember who we are! We are the salt of the earth hard working people, we are the people that built the tanks and planes that crushed the Nazi regime from taking over the world, we have made the vehicles and engines that have been used to advance our society.

We may dwindle and fade from our glory years, but with the right vision we will rise again.

We must begin a new era of renewed commitment of quality, efficiency and innovation.
We should not strive to be on par with the Japanese automakers, we need to beat them in every aspect of the game.

A large part of their success is because the Japanese Government fully backs the Japanese Autos! We need the legislation in place to make it more difficult for Japanese and foreign transplants to use our tax dollars to fund their plants and ship their profits back to Japan.

You now see how crucial the America Industry is to the foundation of this country.

We must ask and demand all those who live in Michigan, Ohio, Indiana, Illinois and other major American Manufacturing States to return their foreign cars.

If you know of Television or radio personalities who drive foreign cars don't watch and don't listen to them.

If you do watch or listen to them this is only reinforcing their belief that driving foreign cars doesn't matter. The same for shops,restaurants and any other establishment you spend your money at.

If they do not support you and your family, don't support them!

Gm Chrysler News

It's Up To The White House To Help Save Gm and Chrysler

WASHINGTON, Dec 12 (Reuters-By Matt Spetalnick ) - The Bush administration said on Friday it could be willing to provide emergency aid to the teetering U.S. auto industry, keeping open the prospects for a bailout the day after Congress failed to approve a deal.

Warning of dire consequences for the recession-hit U.S. economy if the once-mighty automakers collapsed, the White House -- in a reversal of policy -- said it was ready to consider dipping into a $700 billion Wall Street bailout fund to help keep the companies afloat.

'The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,' White House spokeswoman Dana Perino said.

Democratic leaders and the main U.S. auto workers union appealed to Bush's Republican administration -- now in its final weeks before turning over to Democratic President-elect Barack Obama -- to provide emergency funds after a Senate deal to save Detroit's Big Three collapsed in acrimony late on Thursday.

The failure of the $14 billion bailout plan in Congress sent markets reeling around the world. Shares in Toyota Motor Corp the world's biggest carmaker, lost a tenth of their value, and European automakers also closed sharply lower.

But signs that the White House and U.S. Treasury Department were prepared to mount a last-ditch effort to help the carmakers buoyed Wall Street, and large initial losses were mostly recouped.

Pro American website-Boycott Alabama Now-Senator Richard Shelby of Alabama

Here is another New pro American website-Boycott Alabama Now-www.boycottalabamanow.com
From Site:
This site has been developed by a grassroots number of true Americans who have had enough with uninformed politicians who are not helping the domestic auto industry, in this case Senator Richard Shelby of Alabama. Members of our website hold no grudges against all of the hard working people who live in the wonderful state of Alabama. However, it is time to fight back for America and the only way to do it is with our wallets. Our objective is to demonstrate to the senator what happens when a part of America is not supported; therefore we are launching a nationwide boycott of Alabama. It is clear to most Americans that the Big Three must obtain loans in an effort to get through this economic mess (much of which was caused by our illustrious Mr. Shelby, Mr. Barney Frank and many others who failed to prevent the banking industry from going belly up). And to the great people of Alabama, please keep in mind; we didn’t start this mess, our government did.







Contact:Senator Richard Shelby--ph: 202-224-5744

Email




communications@bcatoday.org
(This is the Alabama Chamber of Commerce)
ph: 334-834-6000

Check it out and Support America

Deal reached in principle on $15B auto bailout

Deal reached in principle on $15B auto bailout
By JULIE HIRSCHFELD DAVIS and KEN THOMAS

WASHINGTON (AP) — A government "car czar" with the power to force U.S. automakers into bankruptcy would dole out $15 billion in emergency loans to the failing industry under an emerging deal between the White House and congressional Democrats.

Officials struck an agreement in principle on the measure Tuesday and hoped to finalize it and schedule swift House and Senate votes as early as Wednesday. Money could be disbursed within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. — which has said it has enough liquidity to stay afloat — would be eligible for federal aid.

All three would have to negotiate with labor unions, creditors and others and submit blueprints by March 31 to an industry czar named by President George W. Bush showing how they would restructure to ensure their survival. If not, the emergency loans would be revoked, the companies cut off from further federal help, and the government overseer could order his own overhaul, including forcing them into bankruptcy.

After days of marathon negotiations over the plan, congressional aides and White House officials were still fine-tuning legislative details of the agreement. It could face substantial obstacles from Republican lawmakers, who remained skeptical of the White House-negotiated plan.

A group of conservatives led by Sen. John Ensign, R-Nev., who has threatened to block the measure, planned a midday news conference Wednesday.

As the measure took shape Tuesday, Sen. Mitch McConnell, R-Ky., said he was concerned that Democrats were proposing a package that "fails to require the kind of serious reform that will ensure long-term viability for struggling automobile companies."

With their approach, "we open the door to unlimited federal subsidies in the future," McConnell said.

Getting 60 votes for an agreement, with many senators expected to be absent for the emergency, postelection debate, could be tricky.

Sen. Carl Levin, D-Mich., an ally of the auto industry, said, "This gets us to the 20-yard line, but getting over the goal line will take a major effort, particularly in the Senate."

He called for Bush and President-elect Barack Obama to lobby personally for the auto bailout.

A breakthrough on the measure came when negotiators reached a compromise to require the czar to revoke the loans and deny any further federal aid to automakers that don't strike restructuring deals by next spring. Democrats had proposed giving the overseer that option but not requiring it.

"A great deal of progress has been made on auto legislation that will protect the taxpayer and ensure that short-term financing is available only to companies prepared to undertake the dramatic restructuring necessary to become viable and competitive," Dana Perino, the White House press secretary, said late Tuesday.

One potential stumbling block remained. Democrats' were still refusing to scrap language, vehemently opposed by the White House, that would force the carmakers to drop lawsuits challenging tough emissions limits in California and other states.

That measure "kills the deal," said Dan Meyer, Bush's top lobbyist.

Senior Democratic aides acknowledged as much Tuesday and said they expected the provision to be dropped.

Environmentalists, who count House Speaker Nancy Pelosi, D-Calif., among their closest allies, already were irate that the bailout uses money set aside for a program to help the automakers finance the retooling of their factories so they could produce greener vehicles.

Another remaining hang-up was over ensuring that Cerberus, the private equity firm that owns Chrysler LLC, would reimburse the government if the auto company defaulted on its loan, said a congressional negotiator who spoke only on condition of anonymity because he was not authorized to disclose details of the emerging deal.

The measure would attach an array of conditions to the bailout money, including some of the same restrictions imposed on banks as part of the $700 billion Wall Street rescue. Among them are limits on executive compensation, a prohibition on paying dividends and requirements that the government share in future profits and taxpayers be repaid before any other shareholders.

Also included in the plan is a requirement that the carmakers taking federal aid get rid of their corporate jets — which became a potent symbol when the Big Three CEOs used them for their initial trips to Washington to plead before Congress for government assistance.

White House: Constructive auto talks with Congress

WASHINGTON – Facing massive job losses, the White House and congressional Democrats are negotiating a deal to provide about $15 billion in loans to prevent Detroit's weakened auto industry from collapsing.

The White House said it was in "constructive discussions" with lawmakers in both parties to dole out the assistance as House and Senate staff aides worked through the weekend drafting bailout legislation that is expected to come to a vote next week.

A breakthrough on the long-stalled rescue came Friday when House Speaker Nancy Pelosi, D-Calif, yielded to President George W. Bush on a key point: allowing the aid to be drawn from a fund set aside for the production of environmentally friendlier cars.

White House press secretary Dana Perino said that was central to any agreement, along with requirements that the carmakers swallow tough business decisions and taxpayers be protected.

"Taxpayers should not be asked to finance assistance for automakers without a strong likelihood that they will be paid back," Perino said in a statement before Bush left Washington to attend the Army-Navy football game in Philadelphia.

Pelosi said the House would consider legislation in the upcoming week to provide "short-term and limited assistance" to the U.S. auto industry while it undergoes "major restructuring."

The Engine Of Democracy-Contact Politicians

Here is the Politicians contact links from the website www.theengineofdemocracy.com

The House and Senate websites offer helpful lookup services to contact your legislators' offices as well. Be sure to contact your House member and both of your state senators

House of Representatives Contact

Senate Contact

Contact your State Reps and Senators! Tell them how important the American Auto Industry is to you and your Community!

The Engine Of Democracy website is up!

The Engine Of Democracy website is up! Stop by and show your support for the American Auto Industry. You can get all the information you need to contact every appointed Government Official!

Join the Engine of Democracy:
Urge Congress to Support Financial Assistance for Automotive Industry
This week, the Senate Banking Committee and House Financial Services Committee will hold a second round of hearings on financial assistance to the automotive industry. Your voice is needed to help The Engine Of Democracy, a coalition of organizations representing more than 6 million jobs related to the American automotive industry, to communicate the industry's impact on the national economy.

The Engine Of Democracy-The Facts

The Engine Of Democracy Will Be Up Dec. 1st-The Engine Of Democracy
Visitors also will be able to see the impact of Detroit's automakers on their state as well as key facts and myth-busters concerning Detroit's automakers such as:


-- The automakers are requesting a bridge loan, not a bailout as Wall
Street has done. The companies need the loan because the U.S. credit
freeze has essentially closed capital markets and squeezed their cash
flow from operations that are being devastated by extremely low consumer
demand across the industry. This freeze is happening as the automakers
are in the midst of huge restructuring costs, heavy pension and health
care payments and massive-yet-crucial product and advanced technology
investments so that today's and tomorrow's vehicles are even safer and
more environmentally friendly.
-- GM, Ford and Chrysler make vehicles Americans want to buy. 50 percent of
the products sold in this country come from those companies. The
best-selling vehicle in the U.S. is a Ford; No. 2 is a GM product.
-- Motor vehicles and parts are the single largest export from the U.S.,
topping aerospace, medical equipment and communications.
-- According to J.D. Power, three of the top five brands for dependability
are American made: Buick, Cadillac and Mercury. The 2008 Chevy Malibu
is the highest ranked midsize car in initial quality. The 2008 Chevy
Silverado ranks highest in large truck quality. Ford quality is on par
with Toyota and Honda.
-- Ford has the most five-star safety rated vehicles in the industry and GM
has the same number of vehicles as Toyota that achieved the top safety
rating, according to the Institute for Highway Safety.
-- GM, Ford and Chrysler build fuel-efficient vehicles. GM has twice as
many models thatget 30 mpg or better than its nearest competitor. GM's
four new midsize crossover vehicles have best-in-class fuel economy. GM
has eight hybrids on the road today, with a total of 20 planned by 2012.
The 2-Mode Chevy Tahoe full-size SUV was named Green Car of the Year
last November. The new Ford Fusion Hybrid and Mercury Milan Hybrid beat
the Toyota Camry Hybrid by 6 miles per gallon. In minivans, Chrysler is
better than both Nissan and Toyota and basically tied with Honda.
-- GM, Ford and Chrysler have been restructuring their businesses over the
past few years that included the loss of tens of thousands of jobs, a
new labor contract with the UAW that will bring costs in line with
foreign competitors in this country, and productivity gains that have
put them on par with the competition. Ford was profitable in the first
quarter of 2008 before the economic crisis began and has been working
for two years to improve its balance sheet through aggressive
restructuring while accelerating the development of new, safe,
fuel-efficient and high quality products. GM has reduced structural
costs in North America by $9 billion since 2005, eliminated raises and
bonuses for executives and salaried employees, and aggressively
addressed its manufacturing footprint, shifting from truck and SUVs to
smaller cars and crossovers.
-- According to The Harbour Report, the manufacturing productivity bible of
the industry, GM has more plants leading their respective segments in
productivity than any other competitor, foreign or domestic.

'The Engine of Democracy' Coalition

'The Engine of Democracy' Coalition to Send Workers From 50 States to Washington to Support Auto Bridge Loans---The Engine Of Democracy

USNewswire/ -- The Engine Of Democracy, a coalition of organizations representing more than 6 million jobs related to the American automotive industry, today announced plans to send representatives from all 50 states and the District of Columbia to Washington, D.C., to show support for $25 billion in federal loans to General Motors Corp., Ford Motor Co. and Chrysler LLC.


Spearheaded by suppliers and dealers in all states, this effort shows the massive, nationwide support for the federal loans the automakers need to help ensure the national security of the United States, the continuation of a robust automotive manufacturing base and the economic well-being of the nation and its citizens.


"This is about line workers, parts suppliers, dealership mechanics, and hard working moms and dads earning a living for their families," said Carl Galeana, an automobile dealer in several states and a coalition organizer. "As Americans, we depend on the auto industry to drive our economy in these very tough times. The role it played in reinvigorating our economy after 9/11 is just one example. And please, let's not forget how this industry turned on a dime and became what President Roosevelt called 'The Arsenal of Democracy' during World War II."


On December 5, 2008, 51 people from the 50 U.S. states and the District of Columbia who are directly or indirectly employed thanks to GM, Ford or Chrysler will gather outside the U.S. Capitol Building to tell their employment story and the impact of automakers on their locale. Each participant will be wearing a red, white and blue sport jersey with key data about the industry's impact on their state emblazoned on them.


"America's car companies play a crucial role in the nation's economic engine," said Neil DeKoker of the 400-member Original Equipment Suppliers Association. "Almost 4 percent of U.S. gross domestic product is auto-related and represents 10 percent of U.S. industrial production by value. Ford, GM and Chrysler account for more than 70 percent of U.S. production and support more than 6 million jobs across all 50 states and the District of Columbia."


According to Driving the Future: The New American Auto Industry by The Automotive Trade Policy Council, the U.S. auto industry invests $10 billion in this country in plants and equipment each year. In addition, the U.S.-based auto industry is second only to the semiconductor industry in R&D spending -- $12 billion last year alone, the study said.


A significant portion of that R&D money is spent developing alternative energy vehicles that will move the U.S. away from its dependence on oil. Without the work of GM, Ford and Chrysler, the U.S. could be forced to import critical technologies such as batteries, biofuel technology, advanced internal combustion engines and transmissions, hybrid systems, and fuel cells. That, in itself, has all the markings of a national security disaster.


The auto industry has one of the largest economic multipliers of any sector of the U.S. economy. Its growth or contraction can be detected in changes in the U.S. Gross Domestic Product. In many states, employment in automotive and automotive parts manufacturing ranks among the top three manufacturing industries, according to a recent report by the Center for Automotive Research (CAR).

Detroit-The Arsenal of Democracy

"We must be the great arsenal of democracy."

For us this is an emergency as serious as war itself. We must apply ourselves to our task with the same resolution, the same sense of urgency, the same spirit of patriotism and sacrifice as we would show were we at war." These are the words of President Franklin Delano Roosevelt spoken over the radio during one of his famous Fireside Chats on December 29, 1940. The term �Arsenal of Democracy� would soon become synonymous with the city of Detroit. Historians and military experts agree that city�s war production machine was a key factor in America�s victory in World War II. It started when F.D.R. appointed William �Big Bill� Knudsen, the president of General Motors, to oversee war production in 1940.


Less than a year later, Pearl Harbor was bombed and the United States declared war on Japan and Germany. Auto plants throughout Michigan would soon turn out tanks, artillery shells, carbines and machine guns. The government charged the auto companies with building 75 percent of all aircraft engines and nearly 80 percent of all tanks and tank parts for the war effort. The auto industry also provided more than 12 billion rounds of small arms ammunition and nearly six million guns.

Automotive historian Michael W. R. Davis recently wrote a book about this extraordinary moment in U.S. history�a story that reaches beyond Detroit�s borders. "General Motors (GM) is very big in Pontiac, Flint and Lansing, just for example," said Davis. "You had the ship building industry in Bay City, Michigan, all kinds of manufacturing in Grand Rapids and Muskegon�just to cite a few. Hundreds if not thousands of small shops around the region�tool and die shops, small manufacturing shops�were making parts for the war machine."

From 1940 to 1945, GM delivered defense materials valued at $12.3 billion. GM�s contribution spanned virtually every conceivable product from small ball bearings to massive tanks, naval ships, fighter planes, bombers, guns, cannons and projectiles.GM alone turned out 13,000 airplanes and one-fourth of all U.S. aircraft engines. One of the most amazing vehicles produced for World War II was an amphibious truck known as the �Duck�, derived from its GM nomenclature of DUKW. GM engineers, marine architects and army officers wanted to create a �hybrid� vehicle that was as equally comfortable on the water as well as the ground. The DUKW became a critical vehicle in the transportation of troops and equipment to the battlefield, as well as for carrying wounded ground forces back to hospital ships anchored offshore.

Willow Run Takes Flight

Charles Lindbergh called it the Grand Canyon of the mechanized world. He was referring to Willow Run, the largest aircraft plant in the world built in a small village near Ypsilanti. The Ford Willow Run plant assembled B-24 Liberator Bombers and at its peak employed more than 42,000 workers turning out 231 planes per month. "The aircraft industry could produce incredibly designed airplanes, but not for mass production as Detroit understands it," said Davis. "Detroit had the tool makers, the die makers, all of the suppliers for mass production." Still, the rapid growth of the plant was so great, Ford couldn�t keep up. In July of 1943, they hired 3,000 people in just one day. Housing and roads needed to be built to keep up with the influx of workers.


Many �were forced to live in temporary dorms, tents and trailers. Ford hired an unprecedented number of women for assembly line positions. Rose Will Monroe moved from Kentucky to Michigan during World War II to work at the Willow Run plant. Her name became synonymous with women�s contributions to the war effort: �Rosie the Riveter.�

In addition Ford Motor Company would produce Pratt & Whitney aircraft engines, thousands of military trucks and a funny new all-terrain vehicle with a slotted grille called the Jeep. Ford also harvested the abundant forests of the Upper Peninsula to build more than 4,000 CG-4A gliders during the war. The glider assembly plant was located in Kingsford, where Ford had been manufacturing wooden-sided station wagons. During peak production, 4,500 people worked around the clock in eight-hour shifts and turned out eight gliders per day. American glider pilots flew in the European, Pacific and China-Burma-India Theaters during World War II.

Detroit Tank Arsenal

On 113 acres of farmland in Warren, Chrysler built the nation�s largest defense plant, the Detroit Tank Arsenal. Author Michael W. R. Davis calls it an engineering miracle. "The War Department awarded the contract to Chrysler in August of 1940. Chrysler broke ground in just a farmer�s field early in September and actually had the first tank off the line seven months later." By December 1941, the plant had shipped its 500th tank. Production would increase to a total of five assembly lines and a year later, the tank arsenal set an all-time monthly production record by delivering 907 Sherman tanks. President Roosevelt visited the Detroit Tank Arsenal in 1942 and called it "an amazing demonstration of what can be done by the right organization, spirit and planning." In total, the auto industry delivered more than $50 billion worth of materials to the armed forces and accounted for 20 percent of America�s war production.

The nature of warfare has dramatically changed since U.S. troops stormed the beaches of Normandy, but Davis believes that Detroit is developing relevant technologies for modern defense applications. For instance, General Motors unveiled a driverless car recently at the Consumer Electronics Show. "I happen to be a national director of an educational organization called the Defense Orientation Conference Association and have been privy to many reviews by the various elements of the armed forces and it is very interested in high technology�unmanned war vessels and road vehicles, for example. There�s a lot of high technology that goes unrecognized in Detroit and by the auto industry, so I think that Detroit and Michigan, has much to offer that hasn�t been tapped."

Can History Repeat Itself?

On the site of the historic Detroit Tank Arsenal sits the headquarters of the Tank Automotive Research, Development and Engineering Center (TARDEC). As part of the current TARDEC organization, the National Automotive Center (NAC) is working with private industry to leverage commercial automotive technologies for military use. With more than 60 percent of U.S. automotive engineers living and working in Michigan, TARDEC has unmatched intellectual property to build the next generation of ground vehicle systems for defense support. Michigan has the research and development and manufacturing capabilities and strengths to aid the country once again. As President Roosevelt eloquently stated more than 65 years ago, it is amazing what can be done with spirit and planning.