I am no politician, and I doubt I’ll ever intend on attempting to understand politicians because I believe many of them don’t have the sense that God gave a goat. One thing that I do know a little about is the automotive industry and what is put on blast in the media, on TV, and through the internet. In the current state of America’s economy it is obvious that it still stinks BUT, we are actually showing growth in areas of the American automotive industry.

When President Obama took office we were already headed for disaster, and many of us are still unsure if President Obama actually helped our economy with the government’s hands in the American auto industry. Two of the big three took a bailout that we are all too familiar with, while Ford was able to rebuild without billions of our tax payers money. Some of the most recent stories in the media will tell you that things are on an upswing as President Obama visits the heart of car country at a Chrysler plant, Chevy’s Volt plant and Ford’s plant where they will be building the new 2011 Ford Explorer.

Given the depth of the automotive industry and the slowdown of consumer spending, the automotive industry is only showing marginal returns. Nevertheless, they (GM, Ford and Chrysler) are turning over a profit, something that they have not seen in 6 years, says Obama.

Critics are still taking issue to President Obama’s plan that poured billions into American car companies in an effort to “save” them from disaster. If we face the facts of the matter, we would have seen a trickle down effect of automotive suppliers pulling the plug if one of the big three were to actually liquidate or close their doors completely. Whether that meant an even bigger job loss than what we have already seen or a possibility of someone else absorbing that failed company.  We will never know what would have taken place. What we do know is, some people are claiming to see a victory on the horizon. Some analysts and industry experts believe the American auto industry dodged the bullet but are still on the battle field. Others might tell you the bullet wound is still bleeding out and needs another doctor to fix it.

From an economic standpoint, a large percentage of Americans feel that they have taken ownership of two American car companies. Basically, tax payers have footed the bill on this bailout and they want to see better results. Could it be some have less patience than others, or is the growth that we are seeing in the American auto industry a direct result of “the bailout”?

These are my questions to you: Was the automotive bailout necessary? Ford did just fine without the assistance. Were GM and Chrysler so bad off that they needed this type of “bailout” assistance? Would we have seen a bigger crisis in America if they didn’t have an automotive bailout? Would we be seeing the marginal growth in the American auto industry TODAY? Was the “Investment” in the future of this industry worth it?

Check out the videos of President Obama’s visit to the Ford, Chevy, and Chrysler plants below.

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

At this point, there is no doubt in my mind; GM will be filing for bankruptcy soon. Confirmed by various sources, GM cannot file until after sometime in June of this year. General Motors is looking to conserve every last bit of the money that they have. With the date for them paying back the $1 billion is closing in on them they realize that it simply cannot be paid back. It has been reported that GM plans to idle most of its domestic plants this summer for as long as nine weeks. GM employees will be notified before any official announcements or moves are made towards the idle. It is expected that staggered closures could start as early as May.

Many fear that this could cause a trickle-down effect on the automotive suppliers who are trying to hold-on until some sign of relief or growth in the economy.

WE will all have to literally RIDE this one out and see what takes place.

What do you think? Will GM file bankruptcy in June? Should they?

Today is my “what to do in case of Automotive Industry emergency” news day. All of the major news networks are steadily reporting today updates of the Obama administration’s plans for the automotive industry. It seems they already want federally regulate everything else so why not do it with the Automotive industry. I mean, heck, they already gave Rick Wagoner, GM’s CEO, the boot and now they will guarantee the federal government paying for any warranty repairs on a General Motors or Chrysler vehicle if either company can’t because of financial problems or a bankruptcy filing. That’s actually good news now that I think about it because all my neighbor has to say about his Chevy Tahoe other than it is gas guzzler is that GM may not be able to fulfill their 100,000 mile warranty if they go under.

This has been the topic of discussion for thousands who happen to drive a GM or Chrysler vehicle currently. Many of these cars are still under warranty considering the 100,000 mile warranty offered in the past couple of years by both GM and Chrysler.

“Given where the industry is, these highly unprecedented actions are consistent with the unprecedented times we’re in,” Standard & Poor’s analyst Robert Schulz told Reuters today.

Let’s face it, bankruptcy is a very feasible option for Chrysler and GM and many are finally realizing this. We all knew it may come to this. I guess for now it is good that the government and/or Obama administration is on our side… or are they?

General Motors CEO Rick Wagoner will step down from his position immediately as recently reported by various news associations. This comes about maybe as a slight surprise on the eve of President Barack Obama’s expected announcement of a deadline for Chrysler and General Motors to finalize their terms for restructuring or deciding on a Chapter 11 bankruptcy package.

As the economy shows no apparent signs of improvement except for the recent stock market rallies the auto industry continues to suffer and look for some type of outlet. The outlet for Rick Wagoner was specifically requested by the Obama administration.

Rick Wagoner spent 32 years with GM and in part over-seeing the operations of General Motors all through its better days and recent slump.

Below after the jump is the official message from Rick Wagoner and GM’s board restructuring announcement.

[source: Associated Press]

GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I “step aside” as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM. Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed. I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO. I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world. You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years. GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.

GM Statement on Officer and Board Announcements

GM is announcing the following changes in the corporate officers and the board of directors:

• Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003.
• Fritz Henderson, GM president and chief operating officer, will serve as CEO. Henderson, 50, was named to his current position in 2008. He was previously vice chairman and chief financial officer.
• Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors. Kresa became a GM director in 2003
• GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time.

GM Board of Directors statement, attributable to Kent Kresa, Chairman

“The Board has recognized for some time that the Company’s restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known.”

The back and forth of the Big 3 Bailout talk has come to a head. Bush today has signed the $17.4 billion auto industry bailout package to rescue mainly GM and Chrysler so that they may “live to see another day”. Of the total $17.4 billion, $13.4 Billion in federal loans will be ready almost immediately so GM and Chrysler can stay afloat into the new year (2009).

GM is to get $9.4 billion from the first allocation of the federal loan money leaving Chrysler with $4 billion for the taking.

The terms of the loans are for three years but the money will have to be paid back in full in full if the firms do not show themselves to be viable by March 31st. This means if all fails and they do not show some real results by March 31st, they will have 30 days to pay back the money in full. This means the companies will more than likely have to negotiate new agreements with the unions and creditors to make this happen.

Other conditions were set in place for the loan to actually happen. Each must submit their ideas by Feb 17th for their plans to become “viable” and profitable by this date. This means they will have so REAL work to do in the upcoming weeks. Wonder what kind of blow-out year-end sales will be happening on the dealership lots?

Late Thursday the U.S. Senate rejected the emergency bailout bill that would have provided upwards of $14 Billion to the Big 3 Detroit automakers. Many were hopeful of that was to come of the bailout after it was passed by the U.S. House just two days ago. Now the outlook is grim for the big 3 GM may actually run out of cash by the end of this month while Chrysler may have it’s issues by March.

Other options that are being pushed through is the step to do a repeat vote when Congress comes back next year with new legislation. We will all have to sit back and see what takes place in this situation. Rest assured, we will all be keeping our eyes open on this one. Maybe bankruptcy is not such a bad idea after-all.

Some believe that the auto workers union put a stall to the bailout by continuing to pay it’s people several dollars more an hour in comparison to the US autoworkers who work for foreign car companies here in America (ie: Toyota and Honda). Seems like more of the same when it comes to the “old” traditional ways that may have put us in the situation that we are in now. You can form your own opinion about that.

Hey Toyota!… do you want to buy GM or Chrysler? I think Ford may actually survive on it’s own considering it has the most cash on hand out of the GM and Chrysler.

What do you think? Express your comments, facts or opinions below!!!

The Bailout for the Big 3 Automakers has made it through the U.S. House totaling $14 Billion. Not quite the original amounts of $25 Billion or even the $34 Billion figure that they tried to pull out of their butts the other day. So now we can move on in hopes that “THEY” do what they said they would do. Hopefully a Carczar will be appointed to oversee the rebuilding of these companies so we can get this economy to where it needs to be within the next year or two.

Let’s keep our fingers crossed that it makes it through the Senate… hmmm maybe!

Below is an excerpt from Automotive News in regards to the Big 3 Automakers Bailout Package of $14 Billion getting passed through the U.S. House.

Excerpt after the jump…

HARRY STOFFER
AUTOMOTIVE NEWS
DECEMBER 10, 2008 – 8:52 PM ET
WASHINGTON — The House of Representatives approved emergency U.S. aid for Detroit’s automakers, setting up a showdown in the Senate where prospects for passage are less certain.
The legislation would provide an immediate $14 billion in loans to prevent the collapse of General Motors and Chrysler LLC and set the stage for government stakes in automakers and Washington-directed restructurings.

The Wednesday night House vote, 237-170 in favor, was expected.
“We are hastily reacting to very fast-moving events,” said Rep. Barney Frank, D-Mass., at the outset of the House debate.

GM Statement on House Vote in Favor of H.R. 7321, Auto Industry Financing and Restructuring Act

We thank the House and its leadership for their bipartisan vote to support America’s domestic automakers at this most critical time for the nation’s
economy.

The House vote brings us closer to saving jobs and to creating a more competitive U.S. auto industry in order to maintain America’s economic vitality.
We encourage the Senate to act soon so that we can continue at full speed on the restructuring and advanced technologies plans that will form a stronger, more viable GM.

Frank, chairman of the House Financial Services Committee and a coauthor of the bill, said he would have opposed letting the automakers go bankrupt at any time. But allowing that happen in the midst of a severe economic recession would be disastrous…..

The Saturn nameplate use to be known as a type of automotive brotherhood when it comes to its loyal owners. Lately many Saturn owners have expressed their opposition of GM possibly eliminating the nameplate as they try to restructure.

Just think, TV would not be TV without those awesome Saturn commercials. Okay, I am just kidding. I can say this because I do not drive a Saturn but I totally respect the togetherness that the owners share. I think Saturn was known for revolutionizing the dent resistant panels and the “price you see is the price you pay” deal. Not bad ideas at all. Hopefully GM will reconsider after they see the long petition lists that many Saturn fan-sites are signing. Maybe if they all donated $1 they could help bailout GM… wishful thinking. No pun intended.