Chrysler exec: Failure could spark depression

[specimenfred1984]

Source: Associated Press

---Chrysler exec warns of depression as auto officials intensify fierce lobbying push

WASHINGTON (AP) -- A top Chrysler executive warned Wednesday that a carmaker collapse could send the economy spiraling into a depression, while the United Auto Workers agreed to new concessions for their companies.

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Jim Press, Chrysler's vice chairman, said the U.S. automakers were "down to months left," as industry officials ratcheted up a fierce lobbying push to persuade Congress to approve as much as $34 billion in emergency aid.

"We're on the brink with the U.S. auto manufacturing industry," Press told The Associated Press in an interview. "If we have a catastrophic failure of one of these car companies, in this tender environment for the economy, it's a huge blow. It could trigger a depression."---

Read more: http://biz.yahoo.com/ap/081203/meltdown_autos.html

---

Now the repuke liars start with "it'll be a depression unless you give us money". Nice.......

[Democrats_win]

1. Too bad we can't get any of that bank bailout money we threw in the toilet.

[MadHound]

2. We're pretty much already headed into a depression.

One that the auto makers will likely not survive. Therefore why should we throw good money after bad.

[natrat]

10. sure whatever-25 billion vs 8 trillion-you do the math

8 trillion unaccounted for dollars

[stubtoe]

3. Chrysler was first bailed out in 1979.

Here they are again? That is some nerve.

[sarcasmo]

19. It was a loan, that Iacocca paid back in full.

[stubtoe]

24. I know, you're right. But I don't think that the gov't should be making loans to corporations.

Slippery slope and all that. Back in '79, the Chrysler "bailout" was scandalous.

There was even a funny song written about it, something along the lines of "I am changing my name to Chrysler! I am going up to Washington DC..."

[ixion]

4. maybe they should have thought of that when they were producing crappy products

and spending money like it was water...for executive perks. Maybe, just maybe, they wouldn't be in trouble now.

[TwixVoy]

7. Not just crappy products

there is a point where there are TOO MANY new cars. When you have plenty of good used cars in the market, especially when wages are not keeping up for years and people are slowly building up debt, those used cars look very attractive. The big 3 only make money on new cars not used ones. The problem is they have hit the same problem PC makers already hit. Everyone's got one, so why the hell buy a new one?

[Hawkowl]

15. Bingo!

Exactly. Decline of wages and purchasing power has finally caught up with us. Income inequality is responsible for this depression and it will take a long time to climb out of this hole. Blame it on supply side economics. Give the richest 400 people $600 billion dollars (this is what actually has happened over the past 5 years) means that you've taken away $600 Billion from the masses to buy stuff.
People are finding out that you don't need to buy a new car every three years when the old one will last 10 years. The drop in demand is going to be here long term.

[TheEuclideanOne]

5. Yeah, make sure you give us the money.... You wouldn't want to cause a depression

would you? Please leave the bailout money in small unmarked bills.

[closeupready]

8. rofl

that's what honestly ran through my head, too

[PassingFair]

25. You don't think the media's headline WANTED you to respond that way?

Americans WANTED those big-ass cars that
the Big 3 were pumping out.

At least around HERE (Michigan) they did.
And anywhere else I traveled in the US.

The problem is demand, like another poster
suggested. People who are unsure that they
will have a job tomorrow do NOT usually go
out and buy cars...

The unstable people who DO cannot get the
no-verification loans anymore.

We are screwn.

[liberal1973]

6. The CEO is that pos from Home Depot

The CEO of Chrysler was that big time Bush supporter. He used to be the Home Depot CEO.

All those big fundraisers for the extreme right.

I think he was the one who said that Bush was a great President.

Let Chrysler die.

[Javaman]

9. this is a corporate mugging.

"give me da money wise guy or else I go belly up and I'm takin' yaz all wid me!"

[natrat]

11. some of you sound like right wing plants

sure a depression is possible-but its definite if a million auto industry jobs go in the shitter
where were you all for this scrutiny when they were giving billions to the banks,,,on freerepublic cheering it on i'm sure

[WriteDown]

12. Singing to the choir...

Its amazing how many were willing to fork over billions to the financial industry, but when the auto industry needs a fraction of that, some turn their noses up.

[JonQ]

17. Some of us weren't so eager to give to the financial sector either

not in the least because it would mean that every industry would be flying to Washington (in private gold plated jets) with it's hands out looking for some cash.

[TheEuclideanOne]

22. Sorry, but I don't believe that you can assume I am a freeper

because I am against the auto industry bailout. Agreeing with JonQ's point, IT IS POSSIBLE that you can be against both. Just because you are against the auto industry bailout, it doesn't mean that you are in favor of the financial industry bailout. In fact, it is HIGHLY UNLIKELY that you are in favor of it. Come to think of it, who in their right mind would be cheering on either one?

[sarcasmo]

20. I agree.

[TheEuclideanOne]

23. Don't be so sure, I think you are making an assumption here

where were you all for this scrutiny when they were giving billions to the banks,,,on freerepublic cheering it on i'm sure

If I can take a moment away from freeping (is that a word?), I should point out that being against one does not automatically mean that you are for the other. You are making some hardcore assumptions here. After the auto industry is given xxx billions and the next 5 industry heads come around for hand outs for their own industries and add another 5-10 Trillion to the request pile, you can actually be against them all and it still doesn't mean that you are in favor of the bank bailout (or that you are a freeper).

[KurtNYC]

26. false choice and you're the one who wants to give money to Dan Quayle

and Time Warner. Mercedes sold 80% to Cerberus Capital Management in 2007 (and they booked the rest as worth $0).

The firm is based in New York City, and run by 48-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.

http://en.wikipedia.org/wiki/Cerberus_Capital_Management

And btw the choice is NOT between agreeing with you versus being a Freeper and causing a Depression.

[kpominville]

13. The problem is our trade policies

Giving the companies a bailout will only prolong the inevitable because the bottom line is that people cannot afford to buy new cars. It doesnt matter if they make hybrids or electric cars if nobody can afford to buy them.

The root of this whole crisis is that wages have been stagnant for 30 years. We need to get wages up to meet inflation.

The first step is to strengthen unions and the first step towards that is to support the Employee Free Choice Act.

[Trillo]

14. Is Chrysler's "Personhood" on the auction block?

If not, perhaps the "Big Three" automakers, as well as any others including banks, should agree in perpetuity to repudiate their Corporate Personhood in order to receive any further Corporate Welfare.

[TexasLawyer]

16. What about the car BUYERS??!!??

I'm worried about our ability to BUY Detroit's cars. Even if GM, et al., are bailed out to the tune of billions of dollars, will they then be making cars that largely sit on the lot unsold (to the extent there even ARE car lots left)?

Financing grows more and more difficult, strapped families are doing more with less (not buying a car for a teenager, not buying a second car, selling their second cars, down-sizing to older, less expensive cars), and ailing businesses are turning back leased/ fleet cars, which are flooding the used car market (making it harder to sell new cars-- who will buy a new one when a quality car with just a few thousand miles on it is selling for THOUSANDS less?). Check out Craigslist sometime-- there are lots of anxious sellers out there offering high-quality used cars.

The export market seems very iffy too.

Even if Detroit comes up with spiffy new designs, it will be hard to sell into this gale-force headwind. And very bad timing on the oil price collapse. The urgency for a hybrid purchase declines greatly as pump prices plummet.

[goforit]

18. Oooooooh ......Scarey ......Geee its the end of the world.

[bemildred]

21. Well, it's hard to compete when you loaded with parasites.

(And I don't mean the workers, I mean the "management".)

[kiranon]

27. Yes - his. Of the 3, Chrysler needs to change the most.

Had a Dodge minivan and sold it a few months ago. We couldn't get any adequate service at either of the 2 local dealerships. From day one, the car made these odd noises and no one could stop it. It chattered when one stepped on the gas pedal when the car was recently started. Learned on line that this is a problem in the product line. That was just one of the problems with the minivan. It did drive well and it was comfortable. Why didn't Chrysler come out with a hybrid minivan? That is one of the vehicles that would sell. And, better quality control and better dealer service. Instead Chrysler pushed the hemi engine in their huge trucks. Before we sold the Dodge minivan, we visited a Dodge dealership to see if it had a hybrid to trade it in on. Nope. They tried to pass a used Dodge minivan off on us as new. We were thoroughly disgusted and walked out.