I do not know if the White House has caught wind of this, but the proposed auto industry bailout – as cut and dried as it may seem – is without a doubt a cooked-up scheme that involves the Democrats, the UAW and to a degree the environmental extremists.  It’s one of those cases where the triumvirate of parties involved are conspiring to get the biggest amount money sent to the Big Three as possible, as opposed to the allegedly negotiated $15 billion bailout package which is coming up for a vote fairly soon.

Need some evidence of this bailout conspiracy?  Let’s start with:

• Senator Bob Casey of Pennsylvania.  I think it is old news that Casey called on the automakers to craft a bailout package; however, just as recently as this past summer, Casey ignored the testimony of economists, the automakers and worker reps and joined his Democratic cohorts in imposing $85 billion in new fuel mandates on the industry – which in turn hiked fuel-mileage standards by at least 40%.  Which leads us to…
• The fuel-mileage standards in question.  These standards are a thorn in the automakers’ side due to the high labor costs imposed by the union (UAW in this case) – which are at least 30% higher than at the Japanese-run auto plants here in the U.S., hence the unprofitability of The Big Three. 
• President-elect Barack Obama.  Last fall, higher-ups at General Motors tried to renegotiate a new contract with the UAW; however, Obama (Senator Obama when this happened) joined union workers in a picket line in Kansas City.  While there, Obama told the picketers,
  

  “I stand with the 73,000 United Automobile Workers who are striking General Motors. The demands the union is fighting for — job security, the health benefits they were promised — are things that all workers should expect and that UAW members deserve.”

So while it is true that the automakers are stubborn in insisting that filing Chapter 11 bankruptcy is not an option (it should be) and quite frankly, the management upstairs at the automakers are clueless for the most part (with Rick Wagoner of GM being the best example).  But to be fair, the UAW and the environmental nutcases kind of put a gun to their heads (with Obama being an accessory to all of this), which leads us to this sordid mess that the automakers are currently in.  While I still do not believe a bailout will solve this problem, it looks likely that a negotiated bailout package will be crafted  – probably with strings attached.

Earlier today, I reported about the Big Three making their return engagement as they went to Congress yet again in their final plea for a $25 billion handout; I also provided to you the Ford Motor Company business plan, which was requested by Congress.  As promised, I also have the business plans for General Motors and Chrysler, as well; many thanks to my friends at the Fox News Channel for the knowledge. To view the business plans of GM and Chrysler, please click here and here.  Make sure you have Adobe reader in your PC as the documents are in PDF format.

Guess what folks?  We already know that the Big Three automakers made their trip to Washington for another visit with congress for another round of begging.  We also know that Congress told them that they better come back with a comprehensive business plan.  Thanks to my buddies at Fox News Channel, I have a copy of Ford’s business plan – all 33 pages of it.  If you have time to kill, I’d take a stab at reading some of it, at least.  when the GM and Chrysler business plans become available, The Republican Temple will have them for you, along with the most up-to-date GOP news and commentary available.  To view the business plan, please click here. (Make sure you have Adobe Reader)

John Boehner, the House’s top Republican, has been wondering what a lot us are not in a position to ask: why are Democrats adding an additional $25 billion on top of $25 billion already earmarked to bail out an ailing auto industry?  Boehner on Thursday, according to The Washington Times, slammed plans by leading Democrats in Congress to double the amount of an auto industry bail-out package, saying that there are no assurances that the extra monies would be well-spent.

The Big Three – GM, Ford and Chrysler – are going through big financial losses, and GM execs say that they may run out of cash early next year without outside help.  The Bush administration doesn’t want to use any of the Wall Street money to assist the automakers – I don’t blame him – despite pleas from President-elect Barack Obama.  The White House is looking to wait and see what Congress passes and how the money would be spent.

Tuesday found House Speaker Nancy Pelosi directing House Financial Services Chairman Barney Frank (D-MA) to begin drafting a bill designed to authorize the Treasury Department to use some of the monies in the $700 million bailout fund and send them Detroit’s way; according to Pelosi, the bill would have provisions including new limits on pay packages for auto execs and could possibly give the federal government an ownership stake in the automakers.  Congress is expected to reconvene next week for a lame-duck session that may possibly consider both the auto aid bill and perhaps yet another economic stimulus package.

What I find troubling about all of this is the fact that the automakers made the mistake of manufacturing automobiles that the consumer didn’t have the taste – or pocketbook – for.  And the end result is the current red ink that they’re swimming in.  There is no reason why the Big 3 cannot file for Chapter 11 and re-organize and get their ships righted.  The idea isn’t exactly new as many other corporations have dome this and came out just fine, as a result.

These “handouts” are simply fostering apathy at the corporate level and giving them no incentive to succeed on the financial bottom line.  And yes, this goes for the bankers on Wall Street – not just the automakers.  AIG is a good example of that.  It is rather unfortunate that these corporations are using the federal government as their personal piggy bank because of their mistakes in their ivory towers.  The buffet table needs to be shut down, and shut down immediately.