Governor of Ohio, 5 other states seek bailout aid for auto industry
Thursday, October 30, 2008
WASHINGTON — Ohio Gov. Ted Strickland has joined with five other governors to urge the Treasury and the Federal Reserve to help American automakers.
"The financial well-being of other major industries and millions of American citizens are at risk," they wrote Wednesday in a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. "Immediate action is needed to address this crisis."
Strickland and the governors of Michigan, Kentucky, New York, Delaware and South Dakota want the federal government to use its new powers under the financial industry bailout approved Oct. 3 to pump money into the U.S. auto industry. The letter portrayed car manufacturing as a linchpin of the national economy, with almost 5 million workers participating in or dependent on the industry.
The once-mighty "Big Three" — General Motors, Ford and Chrysler — are struggling in the face of high gasoline prices, a slow economy and a frozen credit market. New vehicle sales have fallen, especially for domestic manufacturers.
American automakers, led by General Motors Chairman Rick Wagoner, have already sought assistance from the federal government this year. Congress funded $25 billion in loans to help the companies produce more fuel-efficient vehicles, and some Michigan lawmakers announced their
intention to seek another $25 billion.
Ohio's economy has been hit hard by the decline in domestic car manufacturing. Jobs in the industry fell 19.4 percent from 1998 to 2006, according to the Ohio Department of Development.
Chris Megerian's e-mail address is cmegerian@coxnews.com
Comments
By karon
October 31, 2008 6:36 PM | Link to this
Barry , why no trains? Passenger trains will be extremely important for transportation in the 21st century! Also, these new sleek trains will create thousands of new jobs and bring back American cities that will be extremely important for 21st century in a global market world!
By Barry
October 31, 2008 2:09 PM | Link to this
no more bailouts for anyone. and we do not need any trains either, unless they are going to pay for themselves (they won’t) they will just become yet another endless money drain like the rta and other government spending initiatives. I am tired of the government taking my money and giving it away or using it on stuff I don’t want.
By Rick
October 31, 2008 2:05 PM | Link to this
Look up Partnership for a New Generation of Vehicles on wikipedia, watch the documentary “Who Killed The Electric Car”, watch the Frontline Heat episode. The US automakers were given lots of government money to develop a hybrid vehicle back before there was any foreign competition. They decided they didn’t want to. Honda and Toyota swooped in and gave the Americans what they wanted. Now they want more money to go back and fix their mistakes? I guess they want us to outlaw foreign hybrids too??
By Jeff
October 31, 2008 1:54 PM | Link to this
This is so stupid. The big 3 have worked themselves completely out of the market. They were given tax-payer’s money to develop alternate fuel vehicles back in 1999. And we haven’t even gotten a decent hybrid out of any of them yet! GM recently got 25 Billion to invest in hybrid vehicle production. Its the greed of the morons who run the Big 3 that put them in such a terrible position. They ignored what the people wanted and shoved trucks and SUVs down everyone’s throats. I say screw them!!!!
By North
October 31, 2008 1:23 PM | Link to this
No! Greed, poor planning, and poor management should never be rewarded.
By karon
October 31, 2008 1:16 PM | Link to this
This is 21st century we need high speed passenger trains for our country and fuel efficient cars for local travel.
By Jim
October 31, 2008 1:11 PM | Link to this
Bailout the automakers!?
Let them stew in their own juices that they made for themselves in Mexico, China and India. MEANWHILE that Nissan you see on the road is made by American workers in TENNESSEE! That Honda Accord? It’s made in Ohio or Kentucky. You don’t see any of the Japan auto-makers with their hands out. If you want to buy American in the 2000’s that means buy Japan! If you want to buy Mexican, then go with GM.
I would rather bail out hookers and thieves..oh wait, same thing!
By Stu
October 31, 2008 12:45 PM | Link to this
Any good, card carrying Republican would be against any government funded bailout. It goes against the party ideology. What good is a party ideology, if you throw it out the window in a time of crisis?
By Wordell
October 31, 2008 12:39 PM | Link to this
Charles Demming, an American, created the processes in the 1950’s that the Japanese used to get rid of their reputation for poor quality. They hired him, and he transformed all of their industries. He was rejected by U.S. Auto makers, and you see the end result. GM/Ford/Chrysler have had so many chances to improve, that’s it’s laughable someone should suggest that we bail them out. Quality/dependability/innovation/price ect. will bail them out. Too late. My Nissan Infinity is great. No problems.
By John F
October 31, 2008 10:30 AM | Link to this
Yes. I’m tired of seeing all of the “Joe 6-packs” hanging out on the corner drunk. Send them to AA, and give them a job. I’m tired of hearing their “Back when I was in high school” stories…
By Joe
October 31, 2008 9:50 AM | Link to this
Bail them out? No. Help them by regulating imports? Yes. And why not? Foreign countries slap all sorts of barriers on US automakers attempting to sell overseas. True, imports have to comply with OSHA & EPA to sell in this country but that’s a lot easier than what those same countries throw up at us. And in reference to other posters, there were many years that US automakers made junk which drove people to higher-quality imports.
By JB
October 31, 2008 9:50 AM | Link to this
Absolutely not ! Unfortunately the government has already overstepped it’s bounds in other industries and established a precedent. Between the Banks, AIG, Fannie & Freddie and the money already handed out to these failing companies, the US is now more Communist than China. Every week it’s a new “crisis” and their answer has been the same as it always has - throw money at it - money we didn’t have in the first place. Now the states are lining up for handouts. Face it - the US is Bankrupt!
By Phil Man
October 31, 2008 9:10 AM | Link to this
Hell no. This is how capitalism works. Stuff goes away if it doesn’t meet market demands. If we bail them out, what’s to stop them from bailing out other non-viable businesses? Let’s bail out restaurant chains, department stores, starbucks, and the 7/11 up the street from my house. Let them fade away, we’ll drive something else.
By Due Dilligence
October 31, 2008 9:07 AM | Link to this
NO! Unless it ONLY benefits the American people. GM, FORD and Chrysler knew what was going on 10 years ago, they looked the other way and just grab the money for the executives. If there is a bail out - due dilligence needs to be in place. 1. ALL top execs are fired and replaced with people who are accountable and paid reasonable salaries. 2. Make energy efficient cars. 3. NO Unions - cars made in the US no shipping jobs over seas.
4. Make everyone accountable. top to bottom
By MI
October 31, 2008 8:39 AM | Link to this
Why bail them out when Clinton helped push them out. What did people think they would stick around here in the US to pay high wages…uh NO Clinton gave them a free ticket to go over seas and pay them folks pennies to do what is being done here. Thank you Clinton and all you Democrats that gave all the US jobs away….WHAT ASHAME!!!!
By Glus
October 31, 2008 8:30 AM | Link to this
We can help them out by firing all of their upper management and getting some new blood in there to rebuild the company by offering a much more fuel efficient line of vehicles. They should have been doing this 10 years ago, but they were too greedy. Their union also helped hasten their demise by offering unrealistic and unsustainable wages and benefits.
By D.R.
October 31, 2008 8:23 AM | Link to this
Duh, why should we bail them out? These are company’s that have turned on us here in the U.S. and left taking millions of jobs only so they can make the vehicles cheaper and faten their pockets. Maybe they should hire a CEO from Honda or Toyota to run their company, they have a strong work force and not asking for money. TOP 3 sell your overpriced junk overseas where it’s made. I don’t blame the unions for making the money because they looked at it as if you can pay the Exec. millions per year.
By D. R.
October 31, 2008 8:22 AM | Link to this
Duh, why should we bail them out? These are company’s that have turned on us here in the U.S. and left taking millions of jobs only so they can make the vehicles cheaper and faten their pockets. Maybe they should hire a CEO from Honda or Toyota to run their company, they have a strong work force and not asking for money. TOP 3 sell your overpriced junk overseas where it’s made. I don’t blame the unions for making the money because they looked at it as if you can pay the Exec. millions per year.
By R. Cook
October 31, 2008 7:36 AM | Link to this
No bailout of the US auto makers!!! They have had lots of opportunity to fix thier problems and build better vehicles. They chose to continue with large gas guzzlers. Let them sink…