Auto bailout stalled

Tools

Click here for a free download of the latest Adobe Flash Player.

By Steve Kuzj skuzj@nbcaugusta.com

AUGUSTA, Ga. - The Bush Administration, Republicans and even Democrats say they oppose using part of the $700 billion financial industry bailout to help the auto industry.

Top executives from General Motors, Ford and Chrysler pleaded for a $25 billion lifeline Tuesday, but lawmakers aren't ready to give them one.

"I feel a great responsibility to stick with what the purpose is, and the purpose is to stabilize our financial system,” says Treasury Secretary, Henry Paulson. “I believe that the auto companies fall outside of that purpose."

In Augusta, car sales have been slow according to Gordon Chevrolet General Manager, Adam Logemann.

"There's absolutely no question that regionally and nationally, auto sales have been hurt," says Logemann.

GM, Ford, Chevrolet, and even foreign auto dealers like Toyota and Nissan—everyone is selling less vehicles, but it's not just the dealers and manufacturers that would be affected if the auto industry fails.

"It supports millions and millions of jobs,” says Logemann. “When you look at it from a flow through perspective, it's not just the union workers on the line who are putting the cars together and the guys in the lots that are selling them; there's hundreds and hundreds of industries that are tied to the automotive industry. Their livelihood is based on it."

The head of the Senate banking panel says the automakers' troubles seem to be largely self-inflicted.

"No matter what happens, General Motors needs to step back and completely reorganize their manufacturing process,” says Logemann. “Their labor process and the number of products they offer in the market place right now."

General Motors CEO says three million jobs would be lost in the first year and economic devastation would follow. He says the auto industry's problems are the direct result of the global financial crisis and the meltdown has severely restricted credit availability and reduced industry sales to their lowest per-capita level since World War II.

View comments

The following comments do not necessarily represent the views of NBC Augusta 26 | news, weather, sports, community, entertainment, shopping for Augusta, Georgia. Users have agreed to these terms and in doing so accept full responsibility for their comments. Moderation is limited.

Tuesday, Nov 18 at 9:01 PM joe wrote ...

As per the baiout. Why should emloyees and or retires suffer for someone elses mistakes? AIG, and others were helped. So why not help the middle class? And its a loan. So taxpayers won't loose.

12502523 Inappropriate? Alert Us!

Add a comment

Name:

Comment: 500 Characters Left

WAGT and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. Comments are posted on site immediately and without station moderation. If you feel a comment is inappropriate you may flag it for review. For guidelines on flagging comments see our Terms & Conditions. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

I have read and agree to the terms

Hide comments

More Good Stuff

WAGT Weather

Click here for 7 Day Forecast
Icon
Current Temp 55.0 °F
Overcast
More Weather

WAGT Weather

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

On Demand

NBC Augusta 26 RSS FeedsNBC Augusta 26 Twitter Feed NBC Augusta 26 Facebook Page NBC Full Shows Online

Viewer Poll

Do you plan to go shopping the day after Thanksgiving?

  • Yes
  • No
  • Undecided