Bailout For Industry Faltering, Republicans Demand Executives Make Sacrifices First

House Republican leader John Boehner, Richard Shelby, the top Republican on the Senate Banking Committee, and Alabama Representative Spencer Bachus, have all criticized aspects of the aid package being crafted by Democrats in the House and Senate.

``I don't know of a single Republican who is willing to support'' the auto bailout, Democrat Christopher Dodd, chairman of the Senate Banking Committee, said yesterday, adding that he would be careful about bringing up any measure that might fail.

Charles Grassley, the top Republican on the Senate Finance Committee, wrote the executives of the auto companies a letter yesterday, urging them to emulate the example of Lee Iacocca, the former head of Chrysler, and cut their salaries to $1 a year.

The chief executives should ``be the first employees of your companies to make a personal sacrifice,'' Grassley wrote. ``Hardworking American taxpayers, including me, expect it.''

 

mercuryguy - 11/14/2008 11:21:21 AM

+4 Boost

It was the Executives and engineers that drove these companies into the ground by building as cheaply as possible and cutting corners to enhance profits.

The line workers just follow orders and do thier job.

I don't see American cars priced to be 30% more expensive than forien cars. Pension and healthcare costs are not the entire picture here.

We always want to make someone or something to be the scape goat to take the blame for recklessness.

It is of course the American way, get someone else to take the blame as opposed to accepting responsibility and showing leadership.

Agent009 - 11/14/2008 11:26:15 AM

+5 Boost

I am not sure I would classify the engineers as part of the problem. They are limited by budgets more than talent.

91z4me - 11/14/2008 11:41:00 AM

+6 Boost

Engineers design within parameters. If their parameters include cost components then they do their job and make sure that is a part of the design.

The problem is management NOT engineering.

mercuryguy - 11/14/2008 11:55:17 AM

+2 Boost

Engineers brought us plastic bolts as a bogus answer to the CAFE standards.

A friend of mine caught the edge of his bumber on the side of the building. He was going less than 2 MPH. The whole bumper tore off the car due to plastic fasteners. The repair bill was huge as it looked like the whole back of the car was destroyed. This causes insurance rates to skyrocket.

When I was a teen, I got into some heavy duty accidents, but I was able to fix the car the next day myself with a crowbar.

Need4Speed - 11/14/2008 2:16:03 PM

+3 Boost

"Engineers brought us plastic bolts as a bogus answer to the CAFE standards" What??? Do you have any supporting evidence of this! Engineers don't base their technical decisions on a personal affinity towards "cheap". Every decision is based upon the cost contraints that are proposed and the available options to meet those cost constraints. Give an Engineer free rein w/o any cost limits and you will really see their talent. People like you just look for someone to blame...you have no understanding of how the process works and just rant about who's the responsible party.

91z4me - 11/14/2008 5:34:08 PM

+3 Boost

mercuryguy,

Your friend hit a multi ton immovable object with his car and you think it was the designer's fault that the repair bill was high? Seriously, is that what you think?

EL34 - 11/14/2008 12:10:37 PM

+1 Boost

Don't worry Obama will work everything out right after he takes care of Prop 8 protesters here in California.

:-D

Whelan - 11/14/2008 2:36:11 PM

-2 Boost

I hope everyone who voted for the savior is paying close attention to what is going on. Cause I voted for the other guy.

truckman - 11/15/2008 4:56:28 AM

+2 Boost

Lee Iaccoca works for $1 a day! You have to give him credit for doing what he thinks is right and putting the company first! Imagine if all the execs did that! I think if the big three is going to survive they will have to up the quality and improve the fuel economy and still produce vehicles with 5 star crash ratings. They are going to have to be better than the imports! Also they have to have fair trading with Japan and Korea so they allow a free market with as many American cars to sell in there countries as the people want! I don't know how America allows this!?

woood - 11/15/2008 12:43:03 PM

+2 Boost

I agree. Execs should cancel all bonuses and maintain salary only until the companies they run start to earn money again. They should also voluntarily return their bonuses for the previous 10 years if you ask me.

mercuryguy - 11/15/2008 1:13:27 PM

+1 Boost

The engineers turned to plastic fasteners to get the weight of the car down and to reduce labor cost by snapping the car together.

So now, if you need to disassemble a panel on a car today, the fastener self destroys itself, meaning you have to look up the part number of a specific nylon fastener and buy new ones.

Year ago you could just screw everything back together. If you lost a bolt, you could just grab a 1/4-20 Bolt and be done with it.

Today you are at the mercy of the auto-parts counter.

Just needless ways to get the consumer to spend more money.

Surely these Execs and engineers could have thought of a more intelligent way to meet the CAFE standards.

91z4me - 11/16/2008 12:05:40 AM

+1 Boost

Yes you could just buy any bolt and replace things years ago, but if we use that attitude shouldn't we all be using horse and buggies.

mercuryguy - 11/15/2008 1:16:59 PM

+1 Boost

My point is not to blame engineers.

We have a habit of finding cheap shortcuts insted of developing robust soultions to problems.

ask231 - 11/16/2008 10:00:29 PM

+1 Boost

The adding of plastic clips and fasteners was used by the imports first and copied by the domestics so I don't think thats the problem.

mercuryguy - 11/17/2008 1:09:45 PM

+1 Boost

Well, it isn't a problem until it costs needless money when it is time to repair something. Or when cars shatter to pieces in accidents leaving plastic junk all over the road. I guess we have become a disposable society.