Remember Katrina, Senators
December 11, 2008
Detroit Free Press columnist Tom Walsh reminds senators from the Gulf States, many of
whom oppose the loans to Detroit automakers, to recall Hurricane Katrina as they cast their votes on the bailout bill tonight.
"When Hurricane Katrina slammed into Louisiana and Alabama on Aug. 29, 2005, the automobile companies of Detroit did not harrumph that the Gulf Coast should have been better prepared. They didn't sit back and wait for New Orleans to submit a detailed plan for future repair of the ruptured levees," Walsh wrote in Thursday's edition.
His column points out that:
General Motors, on Aug. 30 donated $400,000 to the American Red Cross 2005 Relief Fund, pledged to match up to $250,000 more in employee contributions and sent more than 150 vehicles to the stricken area for use in relief work.
Ford and the UAW immediately made a joint donation of $100,000 to the Red Cross. The Chrysler Group gave $150,000 to the Red Cross and $200,000 to local New Orleans charities; DaimlerChrysler Services chipped in $200,000 for the Red Cross and pledged to match employee donations up to $50,000.
In total, he notes, the three Detroit auto companies gave more than $18 million in cash and vehicles to the Katrina relief effort in the ensuing months. "No strings attached."
U.S. Sen. David Vitter, R-Louisiana, who said he would vote against the Big Three bailout bill because it is "ass-backwards" to give them money before Congress sees more detailed survival plans, should think about that before he casts his vote, Walsh commented.
So should Sen. Richard Shelby, R-Alabama, who has threatened to filibuster the bill he calls "a bridge loan to nowhere."
Walsh notes that the Southern senators in opposition refuse to hear the logical arguments of the massive cost-cutting and restructuring Detroit's automakers have done or the devastation their demise will leave in their wake.
"Let's just say that if logical arguments don't work, we should shame them into doing the right thing," the column concludes. "If you see a fellow American is drowning, gasping for air, do you quiz him for awhile about whether he's drunk or why he never learned to swim better? Or do you throw him a lifebuoy and ask questions later? That, it seems to me, is where we are with America's car companies.
"You can do nothing and watch them die, senators. Or you can rush in immediately with emergency aid -- as GM, Ford and Chrysler did in the case of Hurricane Katrina, and after the Sept. 11 terrorist attack, and during countless other disasters.
"And you can hold their feet to the fire afterward, empowering a strong auto czar to make sure they do what's needed to withstand future shocks."
Photo by GM
GM loaned more than 150 vehicles to the American Red Cross for use in disaster relief efforts after Hurricane Katrina.
Posted by Michelle Krebs at 4:51 PM under Chrysler , Commentary , Ford , GM , In the Media | Comments (5) | digg this | Seed Newsvine
Great article - it just shows how Republicans have become anti American worker and anti- American industry and very regional. The next time the deep south want something they should whistle for it!
Posted by: guy1974 | December 12, 2008 at 6:12 AM
$18 million is nothing compared to what they're asking for. That's 0.1% of $15 billion!
Posted by: bizz1441 | December 12, 2008 at 9:59 AM
bizz1441 - a) $18 million is just one example of their generosity and b) $14 billion is a fraction of the $700 billion for financial companies.
So stop being anti-American and sucking up to southern GOP senators.
Posted by: guy1974 | December 12, 2008 at 6:48 PM
The article certainly shows Edmunds continued biased opinion on this subject.
"And you can hold their feet to the fire afterward, empowering a strong auto czar to make sure they do what's needed to withstand future shocks."
Any CZAR will have no real power. he/she will never actually recommend or try and force bankruptcy. Any attempt to penalize companies for not meeting agreed upon goals will bring the Carl Levins of the world out to demand the Czar's ouster.
So, give GM the money in exchange for Wagoner's ouster with a extremely moderate severance. Cut all stock options for executives. Review the voting record of GMs board of directors and senior management on issues like lobbing congress for tax loopholes for SUVs, killing their electric program which was the most advanced on the planet etc. Also and ownership stake.
Chrysler's owners cannot be allowed to profit at the taxpayers expense. If it has to be helped then let the government buy it for half of what Cerberus payed for it. It is their profession to make determinations on buying/turning around companies and they obvious made the wrong decision so they should not profit.
I am shopping American cars right now BTW so keep that anti-american garbage to yourself.
Posted by: georgehughes35 | December 12, 2008 at 9:18 PM
george - it is not garbage and not directed at you if you are buying American.
The garbage that should be cut is the one that says the Big 3 didn`t build small cars that people wanted. Maybe someone should look at November's figures. Trucks and SUV's doing better than the Honda Civic Hybrid (down 70%) and the Prius (or Pius maybe). Both of these hybrids were down much more than the market in general. People have chosen (mistakenly I would say) to go for bigger vehicles because of temporary drop in gas prices. That is their free choice and why should GM be moaned at for catering to that whilst also offering the most fuel efficient mid sized sedans?
Posted by: guy1974 | December 13, 2008 at 7:03 PM