07/23/2008, 9:30 AM

Industry/General

Obama pushing for $4 billion bill to help out Detroit automakers

Senator Barack Obama and Michigan’s congressional Democrats are pushing for $4 billion in tax credits and loan guarantees to aid the ailing U.S. auto industry. Obama’s office sent a letter to UAW members on Friday that promised this plus tax incentives for customers who choose to buy ultra-efficient vehicles.

“America cannot truly prosper unless Michigan prospers,” Obama said in a Detroit Free Press report. The reasons behind these proposed measures may not be as noble as they sound, as Obama’s competitor for the White House, John McCain, is making similar, if less generous, promises.

“I will provide real solutions necessary to help this industry compete and win in the global economy,” Obama wrote in the letter to the UAW.

A letter sent to Senate Majority Leader Harry Reid by Michigan’s two Democratic senators asked for 3.75 billion in funding for loans, which would translaste to as much as $25 billion automakers and their suppliers could use for updating factories and engineering new models. The funding would cover the government’s borrowing costs, and the U.S. Treasury loans would be made at below-market rates.

A further $250 million would go towards research into advanced batteries for hybrid vehicles.

McCain’s campaign opposes the loan plan, maintaining their proposals would accomplish the same thing. McCain promised customers a $5,000 tax credit for buying efficient vehicles such as GM’s Volt, a $300 million prize for developing the next big thing in electric vehicle batteries, as well and strict goals for building flexible-fuel models.

Another stimulus plan that could reach $50 billion would be pushed for in September, the congressional Democrats said, but the sentiments are not shared by the Bush administration.

 
 

07/23, 9:36 AM

posted by:

xyunya

Obama is not pushing anything: he is hiding from Michelle Obama in Middle East keeping the spirit of democratic presidential traditions.

07/23, 9:42 AM

posted by:

elviososa

Seems like Obama is more of Republican than Democrat.

07/23, 9:44 AM

posted by:

xyunya

He’ll be whiter then white to get to White House. Hell, he’ll wear a robe to get there!

07/23, 9:45 AM

posted by:

Z06ified

Another promise to hope campaign. Hope is not a strategy!

07/23, 9:54 AM

posted by:

HemiRoadRunner

I like how politicians throw BILLIONS around like it’s nothing. Does anyone on here even understand just how big a billion is other than we know it’s huge? A billion MINUTES ago Jesus was alive. A billion SECONDS ago it was 1976. These politicians should have to do community service EVERY day of their life before we approve to give away BILLIONS to anyone, including third worls nations, welfare recipients too lazy to get off their @$$, and stop giving it to foreign countires like JAPAN as an incentive to invest here and we might not have this much of a problem.

07/23, 9:58 AM

posted by:

xyunya

They are doing community service: they are serving us!

07/23, 10:01 AM

posted by:

HemiRoadRunner

^^^ Yeah, sure they are. I hope you’re being sarcastic. If you are, then asians just might have a shot at comedy.

07/23, 10:02 AM

posted by:

xyunya

Asians don’t have a comedy. There are no comedy clubs in Asia, just like in Northern Florida.

07/23, 10:03 AM

posted by:

HemiRoadRunner

No, but we have some pretty good strip clubs.

07/23, 10:09 AM

posted by:

400horseSS

xyunya, you seeem kinda bitter, and Hemi billions to prostititions is npthing, look at Duh-bya’s spending habits.

07/23, 10:12 AM

posted by:

HemiRoadRunner

Well, let me say this then. I am GLAD they are spending this money HERE in the U.S. Otherwise it would be going to some backwards @$$ country by the billions without us even knowing it.

07/23, 10:22 AM

posted by:

xyunya

400horseSS, President of the US, has no spending habits. Nor he has any way to influence economy or particular industry. The job of the prez is foreign policy and job of congress administering country’s budget. Cabinet under presidents basically keeps existing bureaucracy from not stopping (I wonder why sometimes), but it the congress that either approves or disapproves budgets and send its to the prez fro signing. Our congress is doing great, masterly lead by Madam Polosi and her zillioner construction magnate husband.

07/23, 10:34 AM

posted by:

xyunya

HomoRectumRunner, maybe you should stick to strip clubs. Perhaps you get a decent draw there and cheering audience, and I hope that you sphincter is full of dollar bills (I am all for you kid) and let the rest of us practice jokes. You ain’t that good at it, boy.

07/23, 10:48 AM

posted by:

400horseSS

I thought the Presidents job was to uphold the Constitution and defend the people of this country, not puff on blunts with terrorist, but hey Bush gave us a reason to be scared everyday with his terror alert bulls*it, isnt today a orange day anyways, so that means im too scared to go to work.

07/23, 11:02 AM

posted by:

POWER-2-WEIGHT

This is BS, so who doesn’t get the tax money that the Domestic manufactures don’t have to pay now? Article is incomplete in the sense that it only shows the benefits. Maybe the war will get less money and we leave. I personally believe if Domestics can’t produce a car for the modern day then they are in the red right? now If that tax money that they were going to pay benefited you some how and now you don’t have it your in the red! This damn immoral transferee of wealth between who is viewed as more sympathetically aesthetic is bogus.

07/23, 11:05 AM

posted by:

mayer_ray_nagin

Asian strippers rule.
.
Oh yeah, and fück bail-outs. Of any kind, including to the housing foreclosure ässwipes. Manage your financial affairs with some semblance of responsibility and you won’t have these issues, but if you don’t, then you deserve to fry. Shïthead politicians - I hate very one of them, and the monstrosity that is the federal government. The federal government should basically do two things:
… 1) defend this country and its borders, and then
… 2) go to hell.

07/23, 11:24 AM

posted by:

Fletch

Soon we will only keep 1/2 of our salary. The rest will go to taxes, social programs and nationalized health care.

07/23, 11:29 AM

posted by:

xyunya

Fletch, some of us already keep just about 1/2 of our salary. Welcome to the state of Utopia.

07/23, 11:29 AM

posted by:

johnnycanuck

Fletch: are you moving to Canada? Wait until you see what we pay for booze.

07/23, 11:37 AM

posted by:

shaver

The housing and oil crisis both are results of speculative greed resulting from free market economics and capatilism being under regulated. Oil and food should not be traded as stocks and futures. They should be artificially controlled to hold a level of consistency for the overall good of the world economy and starving poor. Oil will recede(just like houses) to $90/barrel by this time next year gas will steady at $3.45 Gal.

07/23, 11:45 AM

posted by:

jumpoffit

i’m glad i invested my money in porn- i don’t see porn needing ANY kind of financial help :) - VIVID ftw

07/23, 11:48 AM

posted by:

LJ

I don’t vote “D” or “R”.

07/23, 11:56 AM

posted by:

RaineMan

So where the heck are all these billions of dollars coming from? $3.9 Billion to help out the housing market… $4 Billion to automakers… Several Billion to Fannie & Freddie.
Ya can’t just print more money ya’ know… that’s why the dollar is worth shyte on the international market as it is.

07/23, 12:05 PM

posted by:

Xile

Let’s see here … we’re spending 12 billion dollars per MONTH in Iraq and some of you are bitching about 4 billion to help out the auto industry?

07/23, 12:06 PM

posted by:

tripleonefive

If Obama doesnt win he will have to start doing soul food commercials
The Obama bucket
The Yes we Can…dy yams
The Michelle Macaroni & cheese

07/23, 12:36 PM

posted by:

Scarface03

You can see how political everything now is. Whether you think Obama’s plan is a good idea or not, whether you believe that he’ll come through on his promises or not, the bottom line is that McCain is giving no one remotely affiliated with UAW or the auto industry a reason to vote for him. Obama’s plan: billions to the industry to keep them afloat. McCain’s plan: a tax credit and a prize for the company that develops battery technology that would likely get developed anyway in the free market.

07/23, 12:54 PM

posted by:

RaineMan

I would be more than happy to see that $12B/mo spent financing US interests on home soil.

07/23, 1:11 PM

posted by:

ktulu

I think that could B a geeod Idea. But it has 2 B tied 2 nu jobs.

did Obama’s office send a letter, or did a person woerking in theat office send a letter?

The automakers need 2 cum op w\ real solutions necessary to help this industry compete & win in the global economy

“the Bush administration” is stupid terminologhy I wish people wood stop using it.

The Obamster us not John Edwards.

The goverment is spending 2 much money, and is nit requiring people 2 do enuff 4 it. W. is spending 2 much on the war. this detroit $ is chiump change in comparison. he does not shmoke blints, but maybe he should.

asians R not funny; not even margaret cho

Utah has more good strip clubs than U mite think.

prostitition should B legalized.

bail-outs of any kind R a bnad idea.
The federal government should have defense and pringt money — let tha states sdecide evrything else.

The housing & oil crisEs R both results of speculative greed More regulation us not usually the solution, but sketpicisk, is.

Oil shoud B nationalized. Imports of oil should belong to an oil ministry.

porn will always prosper, byut vivid sucks. it is 2 pretty.

voting “D” or “R” is usually the same thing.

obama swill win

07/23, 2:12 PM

posted by:

jumpoffit

damn i think you just broke my spell checker ktulu

07/23, 3:10 PM

posted by:

beatusmongous

Asians don’t have comedy, but watching them do karaoke is pretty funny.

And Jumpoffit, porn is our largest and most profitable export. Good choice.

07/23, 7:28 PM

posted by:

swamprat

I’d rather bail out the American car companies, bad as they are, then give a gift to a bunch of shyster real estate speculators and morons who overpaid for their real-estate. Unlike the real estate industry, automakers are not destroying every last bit of available land for an overbuilt dumping ground for imported made in China crap and actually do create some jobs here in the US.

07/23, 8:04 PM

posted by:

DrFill

The domestics don’t deserve any handouts. Loans, maybe.
Obama is going to win.
Obama will do a lot of good things.
But handing blank checks to poorly managed corporations, who have squandered BILLIONS in profits over the last 30 years is like handing out guns to chimps.
The ONLY subsidy that might be justifyable is for worker’s wages, to keep factory jobs here.
Obama would be wise to let this issue sort itself out.
Good management and investment will save Detroit.
Not a handout.
DrFill

07/23, 8:47 PM

posted by:

trantz

OK, patriot. Heaven forbid the US support domestic manufacturers. Should just give $$ and no interest loans to foreign country enterprise instead.

07/23, 10:17 PM

posted by:

psiclone

So was my comment blocked because I was critical of the wrong candidate?

 
 
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