Texoma reacts to auto bailout

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Posted: 6:58 PM Dec 4, 2008
Last Updated: 6:58 PM Dec 4, 2008
Reporter: Rashi Vats
Email Address: rashi.vats@kxii.com

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The CEOs of GM, Chrysler, and Ford were back on Capitol Hill on Thursday, trying to get loans worth $34 billion dollars. The auto bailout question is having an effect on dealerships here in Texoma, but the effects are not necessarily negative. Rashi Vats explains.

Dealerships in our area that sell Chrysler, GM, or Ford vehicles all say that the models they sell are selling at employee rates, and some are even 50% off the retail value.

Holiday Chevrolet owner Matt Johnson says it is the best time to buy, because he says many dealerships are just scared to buy cars right now at auctions, which leaves more inventory and less dealerships buying, creating cheaper deals for consumers.

Johnson says sales have not been affected at his dealership. He says his lot actually just sold 10 cars on Wednesday.

"I am taking a proactive approach and taking advantage of the buys out there for my customers and passing the savings along to them,” Johnson says.

The money for the bailout would come from tax payer dollars. We talked to some Texoma residents to see what they think about that.

“They are going to do what they want to anyway. They are probably going to declare bankruptcy,” Mike Morarec said.

“I don’t think we ought to bail them out. They have had the opportunity to cut back and had the opportunity. The CEOs are being paid millions,” L.B. Kirby said.

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Comments are posted from viewers like you and do not always reflect the views of this station.

Posted by: me Location: ? on Dec 11, 2008 at 04:18 PM
i do not agree with this because the three car companies have priced theirselves into this mess. buying a car has become the new american dream. buying a new car is like buying a house these days. the car companies are giving you deals with thousands knocked off to get your buisness. are they that overpriced that they can knock off thousands overnight. so what does a car really cost and how long has the car companies been over spending our money when we buy a car. is the government going to regulate what cars cost or what? will the government help the small business section like this? i do not think so. this just makes me mad

Posted by: Farmer John Location: Everywhere on Dec 11, 2008 at 02:14 PM
Otto, Sounds like your back pocket is not the only thing that is empty, your so one dimentional you have to blame the president for the bank failures the auto industry failing the housing problem,which means you are narrow minded, and incompedent of making a rational decision if you think the president has that much power.everything listed above goes back to Fannie and Freddie which are Democrat babies and there own personal bank.I hope Obama is as honest as he APPEARS to be.baby arm

Posted by: Anonymous on Dec 11, 2008 at 11:19 AM
Oh boy! Now the government is going to tell the Big 3 HOW to spend the money! (Like they know how to manage anything.) Wonder how much this overseer will be paid?

Posted by: Casi Location: Fannin on Dec 11, 2008 at 10:12 AM
To "Glad I Have a Job"...glad you have a job...and no, it wasn't maintenance, it was the service department...and this from an advertised "faith-based" company. Where's their faith? My facts are quite straight...it's the dealership that isn't.

Posted by: Ben on Dec 11, 2008 at 10:02 AM
I agree that unions are stupid. The only thing they have ever done for anybody was; paid vacation, paid sick leave, 40 hour work weeks, child labor laws, overtime compensation, retirement benefits, and minimum wage.

Posted by: OOTO Location: Texoma on Dec 11, 2008 at 09:12 AM
Why should I watch my back pocket, Farmer? There's nothing there. The last 8 years have robbed me of everything but my dignity.

Posted by: Farmer John Location: Everywhere on Dec 11, 2008 at 12:05 AM
Ask the people from Pillsbury if the union is helpful.They priced themselves right out of a job, they bargained for days and got a little,very little, and then the plant closed,and by the way, Casi is right about the 74 dollars an hour, but that includes benefits and insurance and it adds up to that. Unions are for suckers and that means Democrats are running the place.Were in for a long haul with the Dems in power,watch your back pocket, they will want every business union and they to will price themselves right out of a job too.Good luck to Obama.

Posted by: susie Location: dension on Dec 10, 2008 at 08:06 PM
Honda and Toyota are the best cars made.The big three need to look at this.Their fuel efficient cars look cheap,I wouldnt buy one when I can have a reliable Honda.Wake up automakers.

Posted by: yankee Location: Texas on Dec 10, 2008 at 06:16 PM
@Glad...I just got my oil changed at Hogan's and they said business is up because people are taking better car of their vehicles than ever before. Usually dealerships cost more for an oil change, I bet that is why their business is hurting. I was stupid in my younger years, and didn't get my oil changed. Did you know if you don't change your oil it will turn like sludge. If you want to keep your vehicle running, change the oil every 3 months or 3,000 miles, which ever comes first.

Posted by: Glad I Have a Job Location: Denison on Dec 10, 2008 at 02:43 PM
To Casi in Fannin. The workers who were laid off at Red River Autoplex were located in the maintenance department. What this means is consumers are not bringing their cars in to have them worked on, oiled changed, etc. Before relating information about a company, you may want to get your facts straight.

Posted by: javier on Dec 9, 2008 at 08:43 PM
i agree that unions are horrible. it's not like unions helped improve workers safety in the workplace, and conditions. if workers don't want to work in a place that doesn't want to pay for safety checks, etc...they can get another job. there's an illegal willing to do that job anyway. safe or not, they'll do it for less.

Posted by: Kip Winger Location: bells on Dec 9, 2008 at 03:58 PM
Preach it Mick Mars. :)

Posted by: yankee Location: texas on Dec 9, 2008 at 11:57 AM
^5 @ Jolene...Unions are the death to society.

Posted by: Jolene Location: Fannin Co. on Dec 9, 2008 at 07:57 AM
What part of "capitalism" do these people not understand? As for the "working class" in the auto industry - I do not feel a bit sorry for them. It is their union that has created the problem to a large extent with the CEO's and their big bonus plans the twin culprit. Let the "big 3" go under and someone start back with an automobile manufacturing facility in an non-union environment and CEO salary limited to $100,000 per year - NO BONUS - and see if that does not work.

Posted by: Anonymous on Dec 8, 2008 at 10:29 PM
So it's OK that "they" bailed out the banks, no questions asked? It's all about the white collar looking out for himself when the blue collar has to pay by losing jobs. Without the blue collar workers, there will be no white collars! This sucks big time and there is no end in sight. I think they should loan the car companies the money but I also wish there was more investigation into the bank dealings. Smells like Enron.

Posted by: yankee Location: texas on Dec 8, 2008 at 07:55 PM
Let me start off by saying there was NO BAILOUT when Bethlehem Steel went under. Billy Joel made millions singing a stupid song about it. 12 years ago, the health/pension plans had to be cut. The retirees complained, but I didn't ever see the government step in and bail anyone out. Instead the Lehigh Valley regrouped itself and is now thriving as a corporate headquarters for many big companies. For everything that has a beginning, it also has an end. I say, let them go bankrupt and regroup. Putting blood into a bleeding artery isn't going to solve the problem. As for their CEO's it was just a photo op for them to drive to DC this past week. Why didn't they do that in the first place? Why don't they take a $1 PER YEAR salary like Lee Iacocca did?? Where do you think the money is going to come from? We are going to have to borrow it from places like China..I heard enough people whine about the stimulus package and how we borrowed money for that...why don't they whine now?????

Posted by: tito on Dec 8, 2008 at 05:25 PM
anonymous. yes it is a loan. i think many people think that they will go under anyway and those people will lose their jobs anyway. it would just delay it and be money flushed away. i support the loans if the big 3 have good plans of what to do with the money. they for sure have to change what they are doing. layoffs are probably required and lets get some more fuel efficiency. it's doable.

Posted by: Anonymous on Dec 8, 2008 at 04:48 PM
I still can not believe you people are calling this a bailout! They are asking for a freaking LOAN! If the big 3 go under...millions of people will lose their jobs. MILLIONS of people.

Posted by: jerry on Dec 8, 2008 at 03:21 PM
American cars are inferior. make a better product. toyota, honda, volkswagon, mercedes. the germans and japanese know how to give the people what they want.

Posted by: Leroy Location: Out There> on Dec 8, 2008 at 12:33 PM
"In 2006 a typical UAW-represented assembler at GM earned $27.81 per hour of straight-time labor. A typical UAW-represented skilled-trades worker at GM earned $32.32 per hour of straight-time labor."--Quoted from UAW's website, main page. So you can figure that it's even higher now, maybe around 10-20% higher.

Posted by: Casi Location: Fannin on Dec 8, 2008 at 12:25 PM
OOTO - you were right, I misquoted the amount ph. According to the UAW web-site, the average in 2007 was $32.32 ph. Let's extrapolate on a small scale of a 5% increase in 2008. That would make the average annual pay $65,494. Sounds like not too many concessions to me. Of course, their health benefits aren't included in that. Anyway, until the decrepit owners are brought down into the real world, there won't anything change. And looking at the way things are going, there needs to be a dose of the "real world" for quite a few people. But, I'll tell you something else, too. The people being let go at the dealership level aren't making anywhere near that amount. I still say NAFTA and the greed of the government and big business is the root cause of this one.

Posted by: OOTO Location: Texoma on Dec 8, 2008 at 11:20 AM
Amazing how the 26.78 per hour that UAW workers are getting on average, keeps getting jacked up on here. First it was 70.00 ph, and now Casi has it all the way up to 74.00 ph. I am just going to make it easier for all of us. UAW workers get, on average 100.00 ph. I am holding aces over eights. Now, anyone want to raise it again???

Posted by: Casi Location: Fannin on Dec 8, 2008 at 09:23 AM
Let's tell a short story about Red River Autoplex. They just let several people go, after telling them that their jobs were secure...and it is only the beginning. More and more dealerships will let hard-working people go. Yes, the owners are money-hungry, but something has to be done to help stop the job losses. Anyone have any ideas, step up and speak up. The owners do make too much money and the people on the manufacturing line make too much money. $74 an hour is a bit ridiculous...and the UAW says they're not going to make any more concessions. Exactly what concessions have they made? Exactly what concessions have the owners made? Does it really matter? Wake up people, we're headed into a depression and fast. If you have a job, thank the Lord, if you don't, you are in my prayers. The rape of the American workplace began with NAFTA...and continues with the greed of the government, as it was led by Bush, and the select few decrepit old men on the various boards.

Posted by: OOTO Location: Texoma on Dec 8, 2008 at 09:20 AM
Oh, come now, does it really matter what gender I am? All that matters is that I am here to bring happiness into all of your lives!

Posted by: Anonymous on Dec 6, 2008 at 07:33 PM
Even if Cadillac is preferred over BMW & Mercedes by the automotive journalists, the so called 'hip' rich & Famous people wouldn't step foot into one because they are American made. I don't see anything 'cool' in the foreign made cars other than a Ferrari, but I would take a Corvette any day over a Beamer or Hitler's Mercedes!

Posted by: American on Dec 6, 2008 at 12:16 AM
Bob if these people where so educated why do they need a BAILOUT? They should have never put themselves in this position..............

Posted by: Donna Location: Paris on Dec 5, 2008 at 10:22 PM
I do not think we should bailout the auto they make money and they can sell there cars for a lot lower and do just fine. They are money hunger

Posted by: cowboy fan on Dec 5, 2008 at 05:55 PM
I think Jerry jones needs more money to finish the new stadium You think the government can help him out e

Posted by: rebel yell on Dec 5, 2008 at 05:54 PM
so i guess that is why nissan , toyota and honda dont need the help . guess we will always buy made in china things

Posted by: Red Location: Sherman on Dec 5, 2008 at 05:46 PM
Your right anonymous, I should not assume, my apologies if I am wrong.

Posted by: Not a Redneck Location: Here on Dec 5, 2008 at 05:13 PM
Just think about it...only Toyota, Hyundai, Honda, Kia, Volkswagon, etc... in NHRA Drag racing and NASCAR!! LOL What will all the rednecks do if'n they have to root fer a furin car?? They'll have to announce the races in a non-hick accent too and NO one will understand it.

Posted by: Mark Location: Lebanon on Dec 5, 2008 at 04:34 PM
If the Big 3 go bankrupt, it would be a national shame. Give them what they need to get their house back in order. More importantly, make sure they get themselves back in order the RIGHT way. Everyone will have to make compromises. The UAW will have to agree to a pay and benefit cut. New-technology, low-polluting, fuel efficient "green" vehicles will have to be designed and built. GM will need to discontinue some of its brands. Last but not least, the CEOs and other high-ups at the Big 3 need to make a sign of good faith by taking a massive pay cut and dumping some of their perks. Getting rid of the corporate jets is a start. One last thing. I believe one of the problems that the Big 3 are facing is a matter of perception. GM is building some great cars these days, compared to what they were making in the 70s, 80s, and early 90s! Look at Cadillac; automotive journalists repeatedly prefer Caddy to BMW or Mercedes as of late.

Posted by: anonymous Location: texas on Dec 5, 2008 at 04:10 PM
Hey i hope OOTO is really a she and not a he!

Posted by: Red Location: Sherman on Dec 5, 2008 at 01:58 PM
These automakers need to file for bankruptcy protection and reorganize. The bailout money will only postpone the inevitable. They will not go out of business if they file now. I will give OOTO some credit. She is right about the 70 dollars an hour. That is what it costs GM on average per employee including benefits, pension, health care, days off etc, etc, etc.

Posted by: WORRIED Location: OKLAHOMA on Dec 5, 2008 at 01:23 PM
I agree with anonymous. If the loan is not approved, I could lose my job and my family will suffer greatly. Are you people ready to stand in bread lines! With no tax dollars the government will fail due to no jobs. Better look to higher powers for answers. GOD BLESS THE USA!

Posted by: Anonymous on Dec 5, 2008 at 12:57 PM
hey x, stop watching the overpaid nfl players if you don't like their salaries. This LOAN to the auto makers is to keep people that don't make "bookoo" bucks employed. If the big 3 fail...the US will be in deeper poop than you could ever imagine. This is not a bailout like they did the banks! Would you have voted for the government to GIVE billions to the failing banks for knowingly making BAD loans to people they knew could not pay back? I think NOT. But the big 3 have asked only for a LOAN that will be paid back. America needs the auto industry. I mean even the people that make the screws that go into cars will be laid off! If the big 3 fail it will affect entire North America!!! It has already affected ME with the slowdown in production. It's obvious to me that many of you don't care, but your job will eventually be affected too. Buy beans now! OOTO - with benefits the average GM worker could be considered making around $70.00/hour.

Posted by: Mick Mars Location: Dallas on Dec 5, 2008 at 12:23 PM
I think if they do give them the money, they should let Lee Iacocca be the distributor and director of the money. He had to borrow money years ago and turned it around, made profit and paid every cent back. That is integrity. We are losing that in our society.

Posted by: x on Dec 5, 2008 at 12:08 PM
bob from marietta are you kidding me you I would love to have been able to go back to school but I could not I had to find a job you must be a hand me this and that on a silver platter . They do not deserve a salary like they get nor does a NFL player deserve millions for throwing a football I think most normal working people would agree we should not be bailing out these people it does not look like they know how to manage money either

Posted by: OOTO Location: Texoma on Dec 5, 2008 at 11:49 AM
Red: your facts, along with your application of them, never cease to amaze me. The average UAW worker earns 26.78 an hour, not 70.00. (Heck, not even half that.) On the other hand, the average salary for the top five executives at each automaker exceeds $1.5 million per year, not including the value of stock options. Time to rethink your stale approach. Superperturbed, I don't doubt your location one bit if that is the way you see things. I am just wondering when Dubya, Paulsen, and Bernanke became democrats. I must have missed that one. After all, they were the creators of the bailout plan. It is Dubya who has always protected the white collar fat cats. Aren't you glad that is about to change?

Posted by: AMAZED Location: OK on Dec 5, 2008 at 11:29 AM
why do we continue to elect these clowns and send them to washington, we were sold out to the oil companies last year while they tried to determine who was using steroids in major league baseball, talk about mismanagement how far in debt is this country , maybe our senators should all agree to work for 1 dollar a year until they balance the budget and our national debt is zero! I guess its pretty easy to get on your high horse and sit in judgement of people and companies when you are guaranteed your salary and benefits for the rest of your life no matter how bad a job you are doing!!! IMPEACH THEM ALL

Posted by: Me Location: Denison on Dec 5, 2008 at 10:50 AM
BOB: need this money for what? Sounds like you just ate your own words saying, "you can't manage your own finances much less a huge company". Then why is a "huge company" needing to be bailed out? DUH And we "keep going into "OUR" little job and paying "OUR" taxes and let the rich people decide how to spend it best" then why are THEY needing bailed out? Cause they don't know how to spend it. Charging $50,000 to $100,000 for a car that "they" probably don't have $5000.00 in is greed, and we all know where greed will get you in the end.

Posted by: GM Employee Location: Grayson County on Dec 5, 2008 at 10:10 AM
Superperturbed is 100% right. They are asking for a LOAN, not a handout. Go back and look, Chrysler got one in the past and paid it back AHEAD of time with interest. Taxpayers MADE money on that. The bottom line is 1 in 10 jobs are directly realted to the industry.(150 million or more) In our area, it is closer to 2 in 10. Failure of the industry will have a domino effect that will finsih off what is left of our economy. So for all you folks who say "let em fail" you are wishing away jobs for your neighbors. There is no doubt that some things could have been done better and smarter but lets move on and get the U.S. back on its feet.

Posted by: K Location: whitesboro on Dec 5, 2008 at 09:22 AM
Dont "bail them out" they need to learn to live on the level we working class people live on. Make them give up some money and know what it means to struggle instead of just giving them more money to blow!!!!

Posted by: Bob Location: Marietta on Dec 5, 2008 at 09:09 AM
They need this money. All you people crying about white colar saleries should have gone to school and made more of your lives. These executives deserve the high pay they recieve. You can't manage your own finances much less a huge company. You just keep going into your little job and paying your taxes and let the rich people decide how to spend it best.

Posted by: Me Location: Denison on Dec 5, 2008 at 09:07 AM
It would make better sense to bail out the working people so they would have money to put it back in to the businesses. The big companies don't help the working people. They use it for their vacations and big dinners. It would be a whole lot cheaper to give each tax payer one million each than to give the BIG 3 32 Billion. That just goes to show the government isn't very bright. I hope the big 3 go belly up. I don't know how many people are in USA, but I bet it ain't 32 Billion.

Posted by: Superperturbed Location: Hell on Dec 4, 2008 at 11:15 PM
I truly wish ALL of the news media would stop calling the auto industries request for a LOAN a BAILOUT. It is not a BAILOUT. The Democrats GAVE Billions to the banks to bail them out...not loans. They are concerned with bailing out the white collar worker and not the blue collar worker which in fact supports the fat cat white collar workers. This really has to stop.

Posted by: Tom Location: Pottsboro on Dec 4, 2008 at 11:06 PM
Let the CEO's give up their high dollar bonus plans and all the perks they get and the overpaid salary they get and move that money down to help. I am tired of working hard and trying to get by and the people running these big companies, making bad choices and us having to bail them out. What ever happened to working and paying the price for bad choices in business. If a person is making decisions taht is losing money move them out. Quit asking for a hand out from the tax payers.

Posted by: southern oklahoman on Dec 4, 2008 at 09:20 PM
Why bailout someone that over pays themselves? Lets try to bailout someof the middle class people so they can actually go out and buy a car. We bailout these people out and who's going to buy the cars?

Posted by: x on Dec 4, 2008 at 09:01 PM
r u kidding me why is is every one gets a part of the pie but the working class people. who can afford a brand new car these days with people losing jobs

Posted by: Red Location: Sherman on Dec 4, 2008 at 07:38 PM
No bailout. This is taxpayer money that the Big 3 wants. The UAW has run these automakers into the ground with their 70 dollar an hour wages and lifetime health care for themselves and their families. But of course the Dems will pander to the unions, so the Big 3 just has to wait until January.

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