White House: No Immediate Auto Deal, Japanese Carmakers Worried Too

WASHINGTON (AP) - There's still no firm signal from the White
House on executive action to keep the auto industry from spinning
out.
And the White House says it's not likely Monday will bring any
change.
President George W. Bush aboard Air Force One during an
unannounced trip to Iraq and Afghanistan did say again on Sunday he
wants to avoid the economic devastation an abrupt bankruptcy would
cause.
He also reiterated that the use of money from the $700 billion
financial bailout fund to provide loans to the carmakers is still
on the table.
Bush says the administration is not quite ready to announce a
plan yet, but noted that it won't take long because of how fragile
the industry is right now.
Discussions involve the amount of funding and any potential
conditions for GM and Chrysler. Ford says it can survive 2009 but
asked Congress for a line of credit in case the financial markets
deteriorate further.
Japanese carmakers aren't celebrating either. They say what's
bad for the U.S. auto industry means trouble for them as well.
The Japanese say the bankruptcy of any of Detroit's Big Three
will cause tremendous damage by impacting parts suppliers as well
as prospective customers.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by VIEWER on Dec 17, 2008 at 05:10 AM
    THE AVERAGE UNION WORKER DONT MAKE WHAT THEY SAY ON THE NEWS THE PEOPLE PUTTING DOWN THE UNION HAS NEVER BEEN A MEMBER MOST DONT UNDERSTAND IF NOT FOR THE UNIONS MOST COMPANI[ES WOULD TREAT WORKERS BAD IT KEEPS THE NONN UNION COMPANIES IN LINE THEREFORE THE AVERAGE WORKER IN A FACTORY WOULD BE WORKING FOR MINIMUM WAGE IT IS NOT THE UNIONS FAULT THE BIG THREE I IN TROUBLE IT IS POOR MANAGEMENT AND GREED OF THE CEOS AND STOCK HOLDERS
  • by Brian Location: Ashland on Dec 16, 2008 at 04:22 PM
    While most of what I read here has a certain degree of validity, we can't forget that the government in NOT blameless in this crisis. Look at all of the different blends of gasoline that have to be formulated for summer, winter, certain regions of the country...so on and so on....and The People's Republic of California, all car makers HAVE to make an emissions package JUST FOR THEM..ANOTHER expense thanks to the government. And to a degree we can blame ourselves. The Big 3 make what we buy. You can gripe and moan as much as you like, but if NOBODY bought Hummers or large SUV's, NOBODY would produce them. The auto makers were only responding to OUR demands. The unions are only a part of the issue. I'm NOT defending the UAW, just trying to point out other issues in play here.
  • by Chris Location: Avon on Dec 16, 2008 at 11:39 AM
    Pretty simple economics here folks, if the Big 3 can't afford the total compensation package that the UAW workers have then it is time to: 1) renegotiate the contract down to a level where they can remain a viable/competitive company. 2)Down size until you reach the level of competitiveness. 3) Go Bankrupt like the Average Joe has to in this country. Sorry to say it but I blame the greedy Unions in this matter and they have shown by thier actions that they have out-lived thier usefulness. When the Big 3 go under see what your Unions are going to do for you after all these years of paying dues. NOTHING,ABSOLUTELY NOTHING! They will just take what they have of your money and retire to the beach somewhere and live the rest of thier lives in cushy comfort. Sorry to bust your bubble.
  • by Fred Location: Lexington on Dec 16, 2008 at 10:09 AM
    Seems if you recall that the Big 3 were offered $14B, but the UNION wouldn't make a $3-$4 an hour pay decrease concession to put the workers on the salary level of the foreign automakers such as Toyota. Doesn't sound like the Republican's fault to me, but what do I know. I just look at facts.
  • by What do we do? on Dec 15, 2008 at 09:02 AM
    I can see why we need a bailout,but on the other hand why should we have to pay for Big CEO's mistakes and bad managment? I thought the whole purpose of a union was to protect the workers. I just feel sorry for all the families having to deal with this. When all they have done is gone to work everyday and pay taxes.
  • by Goebel Location: Lexington on Dec 15, 2008 at 08:04 AM
    Thousands and thousands of jobs will be lost the effect will worsen the economy think about it.
  • by Karen on Dec 15, 2008 at 07:57 AM
    Terri, you are so right the republicans could care less about the working famlies of KY but you folks keep electing them--don't blame me I didn't vote for Mitch.
  • by Terri Location: east KY on Dec 15, 2008 at 05:59 AM
    It is so obvious that the republicans are trying desperately to bust the unions and I would be surprised to see Bush go against the grain.

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