White House promises last-ditch auto rescue

[camaro5]

WASHINGTON – With Congress gridlocked and the economy floundering, the Bush administration declared Friday it would step in to prevent the "precipitous collapse" of the U.S. auto industry and the disastrous loss of hundreds of thousands of jobs sure to follow.

By DAVID ESPO, AP Special Correspondent David Espo, Ap Special Correspondent – 17 mins ago

Corvette Plant

A day after the sudden demise of rescue legislation in Congress, carmakers were talking with the administration and the Federal Reserve about how they could still get the billions of dollars they say they need to survive. The talks included conditions that automakers would have to meet, said GM spokesman Greg Martin.

The administration said no decisions had been made on the size or duration of the new bailout plan, or what type of concessions might be demanded from the struggling automakers, their workers, stockholders or others.

In a reversal, the most likely rescue option under consideration involved billions of dollars originally ticketed for the bailout of the financial industry. President George W. Bush had earlier declared that money off-limits to the beleaguered automakers.

General Motors Corp. and Chrysler LLC have warned they are running out of cash and face bankruptcy without some form of assistance. Ford Motor Co., which is in somewhat better shape financially, has been seeking access to a line of credit.

Underlining its difficulties, GM announced Friday it would cut another 250,000 vehicles from its first-quarter production schedule — a third of its normal output — by temporarily closing 21 factories across North America. The move affects most plants in the U.S., Canada and Mexico. Many will be shut the whole month of January.

More Here:

http://news.yahoo.com/s/ap/20081213/...tdown_autos_71

[Zabo]

"Underlining its difficulties, GM announced Friday it would cut another 250,000 vehicles from its first-quarter production schedule — a third of its normal output — by temporarily closing 21 factories across North America."

Oh shi- Oshawa already has it rough..now this? At least they said orders get top priority for the 'Maro.

[The_Blur]

I hope Bush follows through with this.

[Legend]

Taking from the $700B for the banks and such sure would do more for the auto industry than leaving the $34B to the banks...at least America will get something back with it going to GM, Ford and Chrysler!

The bank bailout has p!ssed me off more than anything they could do to for the auto industry!

[camaro5]

Originally Posted by I am Legend

Taking from the $700B for the banks and such sure would do more for the auto industry than leaving the $34B to the banks...at least America will get something back with it going to GM, Ford and Chrysler!

The bank bailout has p!ssed me off more than anything they could do to for the auto industry!

It is UNBELIEVABLE what that idiot Henry Paulson has done with OUR money.

He should be removed immediately. imho

[stovt001]

Agreed. I can't believe cash was just thrown at the banks who got us into this whole mess with 0 oversight and promptly used to send the execs on luxury retreats and the buying of competitors, but the moment the auto-industry comes looking for a much smaller amount to keep American production up they suddenly can't give anything even with insane amounts of arbitrary conditions in place.

[FxsX24]

Originally Posted by stovt001

Agreed. I can't believe cash was just thrown at the banks who got us into this whole mess with 0 oversight and promptly used to send the execs on luxury retreats and the buying of competitors, but the moment the auto-industry comes looking for a much smaller amount to keep American production up they suddenly can't give anything even with insane amounts of arbitrary conditions in place.

thats what pisses me off. they want a tiny fraction, but receive WAY more opposition. i think the EPA is standing behind the curtain so they can be told what to build thus saving fuel so they can be happy


i dont think they understand. a pickup or suv reguardless of manufacture can only get so much mileage. pure physics . if they made a truck that gets the economy they want you max as well remove the bed and towing provisions since the motor wont move more than the truck , the driver, and 3/4 tank of gas. 120bhp (about 89 in a s10 at the wheels) 2.2l fullsize FTL

[jeffny09]

Originally Posted by Zabo

"Underlining its difficulties, GM announced Friday it would cut another 250,000 vehicles from its first-quarter production schedule — a third of its normal output — by temporarily closing 21 factories across North America."

Oh shi- Oshawa already has it rough..now this? At least they said orders get top priority for the 'Maro.

where does it say the camaro gets top priotiy?

[DGthe3]

The camaro line in Oshawa will not be affected. It is the Impala line and the truck plant that are getting an extended shutdown.