Nov
28
Instead of bailing ou the auto companies directly wouldn’t it make more sense to?
Filed Under Politics
Blue Dog Democrat asked:
…give incentives buyers of cars from the Big 3? Like we did with hybrids, offer a $2500, $3500 or even $5000 tax credit to anyone who buys these cars. That would spur sales and put the decision to buy or not (and what to buy) directly in the hands of the consumer.
LEWIS
…give incentives buyers of cars from the Big 3? Like we did with hybrids, offer a $2500, $3500 or even $5000 tax credit to anyone who buys these cars. That would spur sales and put the decision to buy or not (and what to buy) directly in the hands of the consumer.
LEWIS
Comments
11 Responses to “Instead of bailing ou the auto companies directly wouldn’t it make more sense to?”
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BEN
The problem with the Big 3 is not lack of car sales - it’s overinflated salaries and pensions because of the automakers union.
STEPHAN
it would have to reward buying cars from the big 3, then the others would sue, and they’d be right.
MAURICIO
I thin the big three should be allowed to fall and allow others to take over who have better business strategies. The Current companies are using a business Paradigm that no longer applies and they are unable to change this Paradigm. It is like being on a ship in the perfect storm and realizing the ship is out of fuel.
LEO
I would say no. Any money invested in the automakers might eventually be lost, but at least if the government invests directly it can negotiate concessions from the companies. And again it can structure the deal so the government (theoretically, at least) gets the money back some day.
Cash rebates to buyers would help the auto makers, but would be lost to the government, unless the resulting revenues to the auto makers resulted in higher total tax receipts to the government.
I think the main problem is that the companies have to change their business model, in order to be better able to compete in the global marketplace.
MOISES
I’m sure if you pay the employees less or not enough to buy one of their cars it will solve the problem… at least that’s what republicans are saying.
KIM
The problem is that people are not buying their cars. Not overinflated salaries as some people blindly think.
No one wants the gas guzzlers anymore. They want fuel efficient cars.
The big rise in gas did more to hurt this Country economically than anything else.
SEYMOUR
I disagree, that would be like rewarding the auto companies for producing an inferior product. They don’t need rewards, they need *******. It looks like we are going to bail them out but I hope there are strict restrictions on how the money can be used (unlike the phony housing bailout that did NOTHING) and prohibits it from being used for dividends or bonuses and makes it clear that they can use it to fund retirements and for development of more realistic products only.
MARLIN
I think that you have a good idea. I also was wondering if maybe some concessions are not needed by the unions. I heard that some people in the car industry are making $65.00 an hour? Now, I have no problem with people making good money. There’s nothing wrong with someone with a skill using it for their own benefit. However, arent concessions easier to live with than no job at all? Seems like unions are a big part of this problem as well. I’m still angry that AIG had another big “vacation” for executives. You would think that they would stop the stupid spending.
PIERRE
IT is the failure of the 3 to recognize the downturn in the market and and desire of the Consumer for more economic vehicles. They need to retool NOW if they want to stay competitive. If they aren’t bailed out, 100’s of thousands of jobs go bye bye….Give them what they ned, but follow up with “This is the direction you will take”!!!
BRANDON
That doesn’t solve the problem. The problem is the fact that the companies are trying to sell cars that people don’t need, can’t afford to buy, can’t afford to have insurance on, and can’t afford to drive.
RONNY
With the Big 3 U.S. Automakers circling the drain, here are 10 solutions to the current crisis and none of them involve sticking your head between your legs and kissing your rear goodbye.