Uh, Detroit, the Obama guys have a real problem with your bailout

Incoming Barack Obama senior advisor David Axelrod issued a fairly stern warning to American automakers today that they'll have to come up with a plan to restructure themselves before the industry receives a federal bailout.

"They're going to have to retool and rationalize their industry for the future. And if they don't do that, then there's very little that taxpayers can do to help them," Axelrod said on ABC News' "This Week."

For emphasis, former Bill Clinton Commerce Secretary Bill Daley, an Obama economic transition advisor and brother to Richard M., the mayor of Chicago, echoed the warning, speaking as a surrogate for the incoming White House Obama team on another Sunday morning news show.

"They have to do it," Daley declared on NBC's "Meet the Press." "The responsibility is on the auto industry and the unions to come back with a plan."

Congress last week delayed any vote on any kind of auto industry bailout plan until next month. Congressional leaders told the three major U.S. auto manufacturers to draw up plans by Dec. 2, with Congress returning to Washington the following week to consider a taxpayer assistance package.

Our blogger buddy Mike Dorning has the rest of this developing story over here on the Swamp.

-- Andrew Malcolm

Speaking of miles per gallon, you don't need any to get cellphone updates on each new Ticket item by going here to register free.

Photo credit: Model T Ford Club of America

ap

Comments

[Alessandro Machi]

Until a Consumerist sits at the bargaining table alongside the Union and Management, NOTHING will change.

Ralph Nader anybody?

http://www.DailyPUMA.com

[Ryan]

A gravy train for the gas guzzler makers just in time for executive bonus season.

Yippee!

[R> Berke]

Be assured there will be a Detroit bail-out despite its wide unpopularity. Michigan has 37 votes that the Democrats badly need to hang onto, and Obama forces start preparing to run another presidential election in only two years. As Palin might say, betcha.

[HereAndNow]

Check out this article on Shell's site. Back in 2006, there were vehicles that could get...hold your breath...10,000+ MPG!

http://www.shell.com/home/content/ferrari-en/news_features/2006_ecomarathon.html

The Big 3 seem proud when they achieve 30 MPG and they always fight legislation to increase fuel efficiency standards. Perhaps 10,000+ MPG would be difficult to achieve on general vehicles, but something MUCH better than 30 MPG should be doable.

One thing is for sure: We've been screwed out of money for gas for years, because of these companies resisting fuel efficiency improvements.

[emmkaytee]

It's interesting that manufacturing is not "too big to fail", while all banks appear to be. I haven't heard of any indignant requests for detailed plans from, say, AIG or Citicorp, regarding the 100's of billions (literally) that they are getting, with apparently no strings attached. Is it because the ripples of the auto industry failure will fall mostly on workers, retirees, and smaller manufacturing and retail businesses, whereas a failure of AIG, which "builds" and sell Ponzi schemes, will ripple out to wealthy investors? (She asked rhetorically...)

[Kathy]

All the folks that voted for Obama because they gleefully assumed he'll go after "the other guy" are in for a very rude awakening.

[volunteer]

Considering that Pelosi stated that the auto industry would get a bail out, I am not sure what incentive the industry or union has too give in

[sksugar]

It's funny how people are already trying to shift the blame to Obama. The last time I checked, Bush is still the president-and has been through all of this disasterous presidential era (i.e., failing ecomony, fuel prices, WAR). Aren't republicans the majority leaders in Washington right now?