Letter to the editor:

Why automakers are undeserving of bailout

Bob Jack, North Las Vegas

Friday, Dec. 5, 2008 | 2:04 a.m.

This is in regard to the Las Vegas Sun’s editorial Wednesday that said no bailout should take place unless the automakers agree to start making cleaner vehicles. I agree that producing cleaner vehicles would be a step in the right direction, but I think bailing out the U.S. auto industry should not happen.

What is needed now is a strong dose of tough love for the U.S. auto industry. The chiefs of this troubled industry have not been “born again” in the days since their last appearance in D.C. What they now need is to feel the pain we are all experiencing. If these automakers cannot survive outside the bankruptcy arena, because of the culture they have created with the United Auto Workers, they must move into that difficult world of ultimate consequences.

Many of us have tried to be responsible in the way we have conducted our lives, have seemingly done all the right things and are still being harmed because of the irresponsible actions of others. Bailing out the automakers — which have not made the right choices, have been self-serving, and cut unreasonable compensation contracts with the UAW — would send the wrong message to the masses who are feeling pain and are getting no relief. Nowhere are there claims that life is always fair, but the job of leaders ought to be to make life more fair when the opportunities present themselves. Congress and the administration have that opportunity now.

Any financial assistance given using taxpayer money should be limited to the national defense interests of the nation.

Discussion: 8 comments so far…

By uddeboda

12/5/08 at 3:50 a.m.

Suggest removal

The only way forward for the big3 is to make smaller, greener and more efficient cars. Figures I could find say that about 77000 workers are employed at the big 3 factories. Regarding the other workers that supply parts etc etc etc, numbers that have been mentioned is 2.5 and 3.0 million.
By azsk8fan

12/5/08 at 7:41 a.m.

Suggest removal

Maybe they could import some of the phone jobs back here from places where the accents are so thick we can't understand them anyway....then we could put the unemployed autoworkers back to work on the phone lines - heck, any job is better than no job....... America needs to wake up and stop outsourcing our work just because some other country can do it cheaper - it's not always about money, contrary to popular belief.
By shanauer

12/5/08 at 9:08 a.m.

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Although I agree on some points I do believe that it was our political leaders that pushed the big 3 to form agreements with UAW. I know that "big3" has tried unsuccessfully in the past to reduce overhead by slimming the fatty salary that they are now giving to UAW.

That being said I also think they need to pay very close attention to what's going on. I don't think that these companies have a chance of making it with or without the bailout. I think it's just a matter of time.
By lvmacp

12/5/08 at 9:42 a.m.

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The whole prob with US automakers has nothing to do with the economy and everything to do with the fact that they have reduced quality so far to make a few extra bucks profit that consumers are beginning to realize that US made autos are disposable garbage. They deserve to fail.
By lvmacp

12/5/08 at 9:45 a.m.

Suggest removal

It's sad when the label "Made in U.S.A." is a reason NOT to buy something.
By DouglasDemocrat

12/5/08 at 1:21 p.m.

Suggest removal

You do realize that bailing them out would cost significantly less than letting them go bankrupt?

How much would the government have to spend on Medicare, Social Security, and other government programs if there's a sudden influx of retired auto workers who have found their entire pension is now worthless? How much in unemployment compensation, subsidies to state programs, and other costs to current workers who have found their job pulled out from under them?

It's a whole lot more that $34 billion they're asking for. More than the upper estimated cost of $55.5 billion that the news reports.
By spartacus84

12/5/08 at 7:43 p.m.

Suggest removal

Start the list of demands: Alternative fuel; Cars that can actually make it until the payments end...
These CEOs are so arrogant and out of touch with the common man. Greed got them in this position. Why should the taxpayers bail them out?
Want a handout? Dump the golden parachutes and obnoxious bonuses. And find the word humble in the dictionary.
By Lenny_V

12/5/08 at 8:48 p.m.

Suggest removal

... Because the factory workers are making $75 an hour plus benefits. Let them go under. Then they start up again in a different form, without being the vice-like grip of the unions.