Snowe, Collins have reservations about bailout
washington

Snowe, Collins have reservations about bailout


By The Associated Press

Democratic Reps. Tom Allen and Michael Michaud of Maine voted with the majority in favor of $14 billion in emergency aid for ailing U.S. automakers, but Republican Sens. Olympia Snowe and Susan Collins have reservations about the bill.

Michaud says he reluctantly supported the bill, which he defended as far different than the unpopular $700 billion Wall Street bailout. The House approved the plan by a 237-170 vote Wednesday night.

Now debate moves to the Senate, where Collins and Snowe both say they have concerns about whether the so-called “car czar” has enough authority to force Ford, General Motors and Chrysler to restructure.

Another concern is that the bill as written allows the automakers to continue clean-air litigation.

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Comments
35 comments on this item

Both Allen and Michaud gave it a ' thumbs up' ? Sounds to me like the Democratic Party is becoming the party of big business. But, in any case, I now feel warm and fuzzy all over knowing that although I am facing a lay-off my tax dollars may be going to Detroit just so some slug who makes $75.00 per hour scewing on side mirrors will not get laid off. Is this a great (expletive deleted) nation or what?

Both Allen and Michaud gave it a ' thumbs up' ? Sounds to me like the Democratic Party is becoming the party of big business. But, in any case, I now feel warm and fuzzy all over knowing that although I am facing a lay-off my tax dollars may be going to Detroit just so some slug who makes $75.00 per hour scewing on side mirrors will not get laid off. Is this a great (expletive deleted) nation or what?

whew!!!!!!-------I got so excited I stuttered !!!

Shame on you Michaud.

Allen was a no -brainer--whatever the left coast wants--No problem!

But Michael ! Come on. I had hope you 'might' think of our grandchildren---. But---then, that would have been standing tall.

Susan and Ms. Snowe--I'm proud of you.

And the Obama era has just begun!

amen rockland amen

NIce to see Snowe and Collins againest this. The whole thing is to keep the UAW in some fat contract. You don't see businesses this large just go away under Chapter 11. Look at Delta. Bankrupt and kept flying everyday. All this talk by the Big 3 and Gettlefinger about them disappearing is hogwash. They just want union members and retirees to keep getting paid. If Toyota can build cars here and make money the Big 3 should be able to as well.

RocklandPhil:

The average hourly union wage for an autoworker in Detroit is around $28, not the made up number that you cite.

SethFortier:

Who remembers Pan Am Airlines?

Once again the right wing's disinformation campaign leads people to false conclusions. New employees at the Big 3 start at $14/hr and with benefits cost $27/hr. Older employees earn about $28/hr (Toyota pays $25/hr) and with benefits cost about $52/hr (Toyota costs are about $47/hr). The Big 3 also have costs averaging about $15/hr for retiree pension and health benefits which Toyota does not pay because they haven't been in existence long enough. Costs are not salaries. The GM workers are not paid $73/hr. The labor costs at GM are about $800/car higher than Toyota's. But GM is selling their cars at $2500 less than toyota. So GM's problem is bad cars not labor costs.

Some of you folks might start thinking about you country first. I read all these blogs that demand the schoolchildren start saying the Pledge, about how important patriotism is, how important respect for authority is, etc. etc. And those same people write that we can just trash our economy because they are jealous of someone making a living wage. Disgusting hypocrits.

GM needs $20 bn to emerge from Chapter 11 bankruptcy. Where do you genius propose they get it. We are in a credit crunch. Banks aren't loaning money to good customers; they're barely loaning money to each other. Delta and the airlines kept flying because the banks loaned them billions. Where is GM which has to have a very poor credit rating and at best has to be seen as a huge risk going to get the money to stay out of Chapter 7 unless we provide it in order to protect our national economy and all our jobs.

By the way who bought those big SUV's and F-150's? Consumers wasn't it? People making the decision that they wanted GM & Ford to make the hugh gas guzzlers right up to a few months ago.

I'm glad to see that Collins has some balls.

$75.00 has been reported. Does it matter? Why should the majority of us pay taxes, while facing a lay-off, just so some slug making $28.00 per hour (that sound better ,Gerald? ) won't get laid off. Capitalism at work. The last time a national government had invested so heavily in private business, laid out stipulations and controls, regulated so much while monitoring the cash flow in and out, was in what we today call a 'corporate state' ------ in the years prior to WWII we called it Facist Italy.

------ and pardon my spelling of 'fascist'

Hope these two have a backbone and vote against this or any future bailouts............

Thank you Jon Albrecht, for having the capacity to open your eyes wider that the

Toyota emblem on your own grille. It's a quality that is getting harder and harder to come by.

The Big 3 have already negotiated cost parity with the foreign manufacturers, the contracts are signed with the UAW.

They simply need to last until 09-10 until they take effect. Another complaint? They make poor cars?

Driven a domestic lately? A new Malibu, Fusion perhaps? No? Take a test drive, then come back and argue.

We'll wait.

The "concessions" that they are requiring, the reduction in debt, are within their means to address. They would rather

watch the companies crawl through the mud.

This entire process is kin to playing russian roulette to the economy.

Jon, GM in Chapter 11? Since when? Bankruptcy gives them a chance to re-structure and get out of these bad contracts they made with the UAW. That's why they want the bailout so they can stay out of Chap. 11. With a bailout they will just be back in 6-8 months looking for more because the bailout won't force them to change the way they do business. And the union is just going to keep having them do business as usually so that all their retired members will still be collecting big checks.

The US government wrecked these companies with their idiotic CAFE standards, which required the automakers to make hundreds of thousands of cars that the automakers KNEW that nobody wanted to buy, and that they would sell at a loss.

Here's a newsflash: gas is below $2.00 again, and, once again, nobody wants to buy all these tin cans, anyone thinking that Detroit is going to be saved by fuel-efficient tin cans on wheels needs to pull their head out.

And the same government that wrecked these companies with their interference wants us to believe that they will solve the problem? The government IS THE PROBLEM, the only thing the automakers need in order to turn around is for the government to leave them the h@ll alone and let them run their business in a free market.

Lets get away from politces and get down to what is happening with the auto makers. They have had alot of years to improve or comeup with a fuel effecient vehicle. Instead they have stayed with the gas guzzlers. I have no sympathy for them what so ever. I thought it was a joke for them to beg. All these years they could of come up with something for the vehicles and they didnt. The fuel did them in. Good

too bad collins and snowe didn't show some balls when the 700 billion bailout came round, they voted for it, now the big 3 only want 35 billion, why not give it to them, treat them the same as the financial side of things.

What about the Maine Automobile Dealer Reform? If we're funding thier private cash cows (and Florida and Sugarloaf homes), we darn well better get something in return. I want the following:

1. Salary cap on Auto Dealer owners

2. $48 dollar an hour labor charge

3. 33$ markup above cost of goods sold on all parts

4. Markup cap above COGS on each car sold

That's not much to ask for funding their personal oligarchies of nepotism. Contact your local legilslative rep and demand a Maine Automobile Dealer Bailout Reform package, today.

People the automakers did this to them selves. I bought a lot of new trucks and they made alot of money off of it. The only thing was they never thought down the road we got to make these vehicles fuel efficient. They thought of it but did nothing about it. Now I as a Tax payer is going to bail them out. Think about it. Do you want to give them this money? If you do your as shifty as they are. Screw em

Sounds like nobody has met Olympia's price yet. Quick, somebody get Jock's firm a no bid contract.

I'm no fan of bailing out the car companies who have been *so* stupid, for *so* long, but here's what could very well happen. If the companies go into Chapter 11, that means *everyone* gets laid off for the foreseeable future. That takes down many of the companies that provide the raw materials to make the cars, etc And then we get into that downward spiral of people being laid off who can no longer purchase goods and serves causing more people to be laid off who produce the goods and services, who can no longer afford to purchase goods and services, causing more people to be laid off.... and so on. That's *exactly* what happened during the Great Depression. Scares the $&*% out of me. Rather than, as the experts seem to be predicting, we have another year of recession, it could morph into *years* of Depression....

JWBooth: Are you implying my friend, that our Senators would engage in a crooked action, in return for their vote?. If you believe that l have this Senate seat

that might be available, for the right price, that is. Our Government is beyond corrupt, but its our (We the People's), fault, for we do nothing, and keep voting them in every time.

RocklandPhil your number is conservative from what they have been stating on the Networks.. they said the avg hourly wage per cost per vehicle is in the $90 range.... but this probably includes OT and benifits... Still.. Who makes that mcuh an hour... I know people with Masters Degrees that don't make that an hour..

It's nice to read that our good Senators have concern with this bailout, because they should. The bailout will give the largest benefit to those crooked union bosses and company executives, so bankruptcy would be the best solution for the majority of American taxpayers. It's time for the crooks to pay for all of the bad deeds they've done. The honest and hard-working auto workers will emerge to form a stronger auto industry for this country. Bankruptcy is the best solution!

gw2kpro - don't you remember about six months ago when gas was $4 a gallon? I have news for you... don't expect gas to stay low like it is now. It was the Big 3 resistance to CAFE standard and the emphasis on inefficient SUVs which is why they are in their current state. Last year, no one was buying large and instead buying smaller cars. It was the failure of the Big 3 to look ahead to the future like Toyota, Honda etc which is the reason for their collapse. The Big 3 can be thankful for CAFE, otherwise they would not have likely produced any vehicles people actually wanted to buy last year. As soon as the economy turns around, gas prices will follow. I have rented a few of the new GM model cars lately and have been impressed with improvements made from earlier years. I don't want to see them fail but I don't think our tax dollars should be bailing them out either. They need to be more competitive and if that means bankruptcy and restructuring to emulate the foreign car brands by cutting labor costs and making more fuel efficient vehicles, so be it.

Downeast you are 100% correct. i could not agree more.......

When will the Mainers rid themselves of these Republican harridans -- Snowe and Collins? Wall Street bankers did not deserve a bailout -- working men and women in the auto industry do. If the UAW is destroyed, everyone suffers but the rich.

Years of bad decisions and billions of dollars in debt so,we the taxpayers,can bail them out? I don't think so.

and the rich get richer and our tax dollars will now be going to welfare pay me now or pay me later...it makes on difference..do you really think we need 2 to 5 million more jobs gone....maybe China will buy GM..I've most always owned GM cars...I do agree that some of these people make to much...but come on now....how many of you would say no to that kind of money if it was offered....the republican would have us working for 2 bucks and hour and steal a buck 50 back for our own good...24 out of the last 32 years there has been a republican in the White House...and look at the mess we are in

Another bailout isn't an option... let these companies fail they deserve it! For years I've purchased Toyota and Nissan vehicles because I knew I couldn't afford to be at the dealership waiting to have my car repaired while still making payments on it... nor could I afford to miss any work to pay for the vehicle that was in the dealership being repaired. Toyota and Nissan provide cars with dependability I can rely on.

Yes, I’ve had people say: “You have to support the American companies; it’s not fair to buy foreign cars.” Well, it wasn’t fair for me to miss work and it wasn’t fair that while still paying for my fairly new vehicle, I had to shell out $500.00 for something that should have lasted far longer than it did, and it also wasn’t fair that a car could pull me straight into bankruptcy either… so I had to choose the vehicle that was going to cost me less in the long run and it happened to be the foreign vehicles. I used common sense and made my decision based on that.

I simply don’t agree with anyone getting a 5 million dollar bonus at the end of the year and what employee gets benefits without a co-pay? I believe we should take away the huge bonuses that the corporate executives get at the end of the year, get a cheaper insurance plan for the workers, build more reliable vehicles that are fuel and energy efficient. We’re Americans for God sakes, we are one of the wealthiest countries in the world… we have highly educated people here who can figure this out. We shouldn’t be bailing out these companies. Failing will help turn the economy around believe it or not and put everything back in line again. We need to learn a lesson from all this and the lesson is: Save for a rainy day because it’s sure to come. All those 5 million dollar bonuses add up… and probably would have pulled these companies through during this difficult time.

Where were most of you when Wall Street was given billions of dollars for their bailout? The last quote that I heard was 360 billions dollars....so far...with no oversight. You people were not clamoring for those white collar workers to take cuts in wages or benefits. But here we are with blue collar jobs in jeopardy and you are willing to throw them on the streets and happy about it.

There is nothing fair about this entire mess we all find ourselves in. Whining about this person not getting laid off while this one does is not going to fix the problem. That attitude will only land is all of us without a job. Drastic measures are going to need to take place and yes that does include the union workers, non union workers, white collar workers and executives. Let's stop pointing fingers and start supporting one another because that is the ONLY way we will get through this difficult time.

By the way, for those of you that have had nothing but positive experiences with your foreign auto...good for you. I on the other hand had nothing but miserable experiences with both Toyota and Nissan. Both cost me a fortune to own far outweighing any benefit in gas savings. No thanks, I want to stay with my american auto.....if only I can.

cheeta.. I was against THAT bailout as well. I have had GM,FORD, & Nissan & Jeep vehicles... No one is better than the other in my book, but the PRICE GAP IS HUGE!!!! Would you pay $5 more for a gallon of milk knowing that the gallon sitting next to it is comparable (no better or worse than the $5 gallon).... why should we for automobiles?

Stock holders in the big' 3, are the Senators and Representatives, or at least were, who knows maybe some swithed stocks to honda etc. These houses have held down auto advancement to some degree for decades now. They refused to cut profits to put quality/reasonable safety features in vehicles. When advanced procedures were recommended it was the Senate and Reps. that voted them down. They controled the stocks. Research the Tucker car of early 1900's. Today people are changing what they purchase for stocks. Like the gov. sold out all tobacco companies now they are forcefully telling you not to smoke. For your Health, you think? HA HA... Look at the air we breathe. The Government lost all taxes by companies selling out to other countries. So we are facing one of the Divide/Conquer Regimes. Another buy American Scam. Who wants overpriced goods, whose standards are from the dark ages. These companies do not need to be bailed out. It will work itself out down the line. 'materials' will Have to come down as well. They are out of sight. Ever buy wood in Maine??? HA HA ....The monopoly will die as it should. Lots of new things to be manufactured.

American Auto Workers put out great cars despite what many of you may think. Executives of these companies have made bad decisions but many of you are only too wiling to blame blue collar American worker for their companies' woes. I suggest that you look at American trade policies. No matter what we do, no matter what wonderful cars we Americans may produce, we are handicapped by our trade policies. Other countries will only accept a limited number of US cars as they may hinder on their own auto industry....not so in the good old USA......we will accept and buy anything. Foreign auto makers are subsidized by their countries. Many have national health care. Many even take care of their elderly....Not so in the good Old USA. The American worker is screwed not only in the global market but you the American people. What is happening here??? We no longer can by clothing made here in the USA....we cannot buy shoes made in the USA....we cannot buy appliances made in the USA....Wake up America!!!! Are you so willing to turn over the ONLY manufacturing that we have in this country!!

Once upon a time there was this thing called "The American Dream"...one could have a job that assured owning a home, a family, a dog, look forward to retirement.....what a dream!!!

Cheeta you are not a voice in the wilderness. There are many of us who feel the way you do. It is difficult to believe that in this blue-collar state of ours so many are eager to throw the auto workers to the wolves. If they haven't figured out by now that the rich are not their friends, they never will.

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