How to Bail Out the Auto Industry: A Few Ideas

[JCMach1]

Here are my ideas about saving our auto industry:


1. Pass a 5 year moratorium on sales tax for Automobiles MANUFACTURED in the United States.

2. Raise the Federal Gasoline Tax by 6cents per gallon. These would be setup into 3 funds. 2cents would go towards a general bailout fund. Companies could apply for emergency loans. Taxpayers would receive shares equal to the dollar amount in relation to the present stock price. 2 cents would go for an R&D and modernization fund. Taxpayers would also receive shares or warrants. All money would have to spent in the US and companies would only borrow what they needed. The other 2cents would be put in a fund for the states to implement mass transit and other transport projects designed to make jobs. The new tax would Sundown after 10 years. If there is money left in the fund, it would remain a permanent bailout fund for the auto industry.

3. To receive the benefits of the entire package, the industry would have to agree to new CAFE and emission standards effective within 4 years. Additionally, 50% of manufactured vehicles should use alternative sources of energy (or be hybrids) by 2015.

4. Pass a universal healthcare package that would take the burden off of U.S. manufacturing.

5. Top managers, board, CEO, CFO could make no more than 100% of the average company salary until the company has been profitable for 4 consecutive quarters.



There should be no SINGLE ATM bailout. Let's get some smart government going in this country. What other ideas would you add to this package?

[Crazy Dave]

1. The word out is...

GM and the rest of the automakers with their hands out want to use the tax payer's bailout money to expand and build new factories overseas. Of course they'll keep their executives here in the US in order to collect the money, plus the subsidies and tax breaks that they already get. And to lobby for more money to build and sell more cars outside of the US.

[Romulox]

8. Ummm, link? nt

[Crazy Dave]

11. Here's one and it wasn't that hard to find

General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program

http://www.laht.com/article.asp?ArticleId=320909&CategoryId=12396

Google the rest yourself :P

[Romulox]

21. The Xinhua link from yesterday said that the Brazillian government was giving GM $3 billion

[Crazy Dave]

23. So what's your point?

A lot of jobs could be kept right here for a billion of our tax dollars. Are you saying it's no big deal since Brazil is putting up more?

Here's another new GM factory that just started up in Russia but I'm sure the Russians put more billions than we did right?
GM opens first Russian factory
http://www.leftlanenews.com/gm-opens-first-russian-factory.html

Plus GM has opened two plants in India in 2008
GM opens second India plant
http://www.iht.com/articles/ap/2008/09/02/business/AS-India-GM-Plant.php

So even while tens of thousands of GM employees here risk losing their jobs, GM wants lots of our tax dollars to build more foreign factories.

I mean how dare they pay for it out of their executive's payroll and bonuses or even export our vehicles there.

There's more. Did you even look?

[Ganja Ninja]

2. Offer a tax credit of $1000 to $1500 a year for the first 3 years of

ownership for cars that get an average of 30 mpg or better. While they're at it they could offer a one time tax credit of $500 for scooters or motorcycles under 650 cc.

[JCMach1]

3. Make 1000 for over 30mpg and 3000 for hybrid or alternative

I am with you on that...

That would offset the gas tax by putting money back in the taxpayer's pocket if they consume in a smarter way.

[ColbertWatcher]

4. How about this one? (link inside)

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=7902575&mesg_id=7902575

[JCMach1]

5. Could be something to that... have a private company produce a reality show

about how these guys are saving the company... You get entertainment for the masses, free publicity/advertising AND the stakeholders can see what you are doing.

[ColbertWatcher]

6. They could air it on CSPAN. n/t

[JCMach1]

7. Would be cool... Get T Boone Pickens or Warren Buffet to host

with the power to FIRE the incompetents as necessary!

[ColbertWatcher]

9. Ugh, neither of those two would be interesting. Get someone qualified to host! n/t

[JCMach1]

14. Ok Ryan Seacrest then... or that guy from Queer Eye

who hosts Groomer Has It! :rofl: :popcorn:

[ColbertWatcher]

22. LOL! There's no one between those two extremes!

I'd like to see the lady who hosted the British version of "The Weakest Link"

[KharmaTrain]

10. And Who Has Money To Buy

Two years ago, those companies were reporting big profits and the dealers couldn't keep the SUVs and "hot models" in stock. What's changed? The economy has gone into full parlysis. Billions of dollars have been squandered and lost in a credit fiasco that has still to play out. Millions who had jobs and stable homes and incomes two year ago, no longer do. Millions more who had investments and extra income generated from stocks and other market-based funds have sheltered up what's left of their money...putting into T-Bills or under the mattress rather than going to the local auto dealer. Most of us are driving less as the cost of living continues to soar and those who would be disposed to buying a new car or other major purchase is sitting it out...making do with what you have while the economy sorts itself out.

All your points have merit and is needed for when the economy recovers, but as long as credit remains tight, so will money and the government can throw billions at not just the auto industry but the airlines and Wall Street but it's not going to make much difference while the consumer can't afford to spend. The free ride is over...we're headed back to a pay as you go society...and in the long run that may not be a bad thing.

[Crazy Dave]

12. The people in the countries where they're expanding and building more factories.

With our tax dollars at that.

http://www.laht.com/article.asp?ArticleId=320909&CategoryId=12396

[KharmaTrain]

13. Another Short-Lived Bubble

Yep, our tax dollars have gone off shore in many ways, but without out consumer market to buy their junk, their bubble won't last. The reason the Chinese bought so much of our debt for so long was it was in their financial and social interests to keep our consumer economy rollin' that created jobs and money for them. Now ships that once were crammed are now barely loaded and our financial gridlock is having a big affect around the world...especially in Asia. We're just starting to see the impact of this mess...it is going to ripple into many sectors and around the world.

[JCMach1]

15. China's economy has burst too...

Hell, even Dubai is feeling effects now!

[Crazy Dave]

16. Yup

You'd think other nations would learn from the examples of the US and Japan who used to be the manufacturing giants but decided to outsource the majority of it to China. The dumb-asses actually thought that the same people they kept laying off in the tens of thousands yearly would still keep buying their goods.

But true capitalism has caught on world wide now with a fever. In nation after nation, a select few of very wealthy millionaires are cashing in and making themselves billionaires in the short short term then they bail out with help from their friends that they made wealthy (politicians) and go invest somewhere else in the world until that traveling bubble predictably bursts again and the same cycle repeats itself. With a lack of affordable healthcare here in the US many will die at early ages therefore pruning the workforce and the burden on the Social Security system. Maybe in about 30 years things might stabilize and will be declared "progress".

[JCMach1]

17. Dubai leveraged its remaining oil revenue to build the city

and the debt for the emirate is over 100% of GDP.

In contrast Abu Dhabi is only 5% of GDP...

Sheikh Mohd. Al Maktoum is going to have some belt-tightening to do...

[KharmaTrain]

19. I Guess There's Plenty Of Rooms Available At That 6-Star

It's interesting to see the Saudis trying to pump up Citibank...you'd think with all the cash they horded this year, they'd be sitting pretty right now, but looks like those Sultans were some of the biggest high rollers and losers.

[JCMach1]

20. Not yet... but wait some time...

[jazzjunkysue]

18. Big oil gives back it's tax breaks for the last few decades, directly to auto.

This is so simple.