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DEL.ICIO.USAn emerging Southern view of the Detroit bailout
The Atlanta Journal-Constitution
Sonny Perdue now drives a Kia. Occasionally.
The jet-black, $37,500 Borrego sports utility vehicle showed up in the governor’s Capitol parking spot last month, a gift to the state from the South Korean car maker - which is now building a $1.2 billion plant in west Georgia.
Apparently, company executives didn’t want Perdue showing up on their doorstep in something out of Detroit.
In the midst of a high-stakes debate over whether to salvage the U.S. auto industry with an umpteen billion dollar federal bailout, this is a small detail, but a telling one.
In its own way, the governor’s new ride may be as meaningful as the demolition of the Ford plant in Hapeville, or the abandonment of the General Motors plant in Doraville.
For behind the philosophical back-and-forth over government intervention, scheduled to begin Monday in the U.S. Senate, is a cut-throat, economic reality: the South has ambitions of becoming Detroit’s rival.
And a federal dollar that artificially props up manufacturing on the northern end of I-75 is a dollar that hinders the creation of new economic models downstream, some Southern politicians maintain.
Last week, Gov. Mark Sanford of South Carolina argued that the refusal of the federal government to bail out the Pittsburgh-based steel industry in the 1970s ultimately led to the establishment of new steel mills in the South. Which permitted the birth of a new facet of the auto industry - highly automated, mostly non-union, and foreign-owned.
“There wouldn’t be a BMW in South Carolina or a whole host of other auto industries scattered across the South, because we would have just kept them all in Detroit,” the Republican said.
Georgia’s Kia plant is scheduled to open next November, employing as many as 2,500 workers. The site is located within U.S. Rep. Lynn Westmoreland’s 3rd District. Westmoreland, like other House Republicans, voted against the $700 Wall Street bailout.
He’ll vote against a Detroit rescue as well - on the grounds that it would create a slanted field of play for the workers he’ll soon represent.
“One of the things we have constantly said is we can’t compete with some of these foreign businesses because the government has intervened in those businesses, and it makes an unfair advantage,” Westmoreland said. “What we’re doing here with the auto industry is basically the same thing.”
As have other states, Georgia laid out a boatload of incentives to land its auto plant, worth an estimated $415 million. But that’s not the same thing, the Georgia congressman said.
“I don’t think we were doing that because of bad business decisions Kia was making,” Westmoreland said. “We did that to get them in here, to create the jobs, to create the taxes, to put economic development into the area.”
Regional rivalry has its limits, of course. Before turning one’s back on Detroit, one must consider the impact that the addition of 1.5 million unemployed would have on an already shaky national economy.
Foreign car makers with interests in the South made up roughly 40 percent of the U.S. sales market in July, but contrary to what you might expect, they’re not interested in seeing Detroit disappear, said Bruce Belzowski, an assistant research scientist for the University of Michigan’s Transportation Research Institute.
Companies like Toyota “really don’t want to be seen as conquerors, from an image perspective,” Belzowski said.
Then there’s the fact that, if you’re a member of Congress, you never know what this economy might bring next. And an attitude anchored too firmly in laissez faire today might hurt Delta or Lockheed tomorrow.
Even if you’re a prospective Kia employee, you might not want to see Detroit fall. Wages are lower in Southern auto plants, but they’re still tied to wages hammered out between the United Auto Workers and the Detroit Three, according to Belzowski.
“Those people wouldn’t be making the money they’re making now if not for the UAW,” he said.
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Comments
By REPUBLICANS FOR JIM MARTIN
November 16, 2008 2:45 PM | Link to this
AIG would not be making the money they are now if not for $axby shameless and his crooked bailout cronies.-We want to see $axby defeated for the security of our nation.
By Atrick
November 16, 2008 4:17 PM | Link to this
I would hate to see Georgia without a Democratic Senator in Washington when we are headed into the worst recession of our lifetime. When times get bad Georgia is going to need all the help it can get! South Carolina got a Democratic Senator and will probably get ten times the money that Georgia will get!
When you got the Democrats running everything in Washington you better have a Democrat Senator to deal with them. Sorry Saxby! But the writing is on the wall! If Mccain had won I’d have voted for you!
By Patrick
November 16, 2008 4:25 PM | Link to this
Merge Merge Merge. We dont need three manufacturers all making basically the same tired products. Worse still, Ford actually makes a car that squeezes 65 miles per diesel gallon, but refuses to bring it stateside because of fears that it wouldnt sell. Whatever happens (bailout, bankruptcy, merger) I want to see innovation and not zipcode-sized trucks and SUVs. If Chevy can pull it off and price it in the low 20’s, then I’d be willing to give the Volt or something similar a chance but I want innovation, quality and reliability my cars. Detroit has lacked all three for decades and that has to change if we’re going to stay in the car making biz
By DUSTY for Martin
November 16, 2008 5:11 PM | Link to this
Chambliss is shameless and corrupt. Chambliss has received large campaign donations from the sugar industry and specifically Imperial Sugar. During the senate hearing, he falsely accused the whistleblower of being the one who was responsible for the conditions that led to the tragic explosion. But this is Chambliss’ pattern. Consider the tragedy of Katrina. Afterward, he voted against all legislation that would have helped schools and individuals. He was opposed to investigations of the government’s response to the hurricane. Instead, he voted for tax breaks for businesses. Also, consider his response to the financial markets plunge. There are a large and growing number of foreclosures taking place in Georgia. There are hundreds of thousands of mortgages that are 60 days past due. Instead of trying to figure a responsible way to reduce the number of foreclosures, he hands $700 billion to the former CEO of Goldman Sachs. For those of you who do not know, Goldman Sachs was one of the biggest players in sub prime lending and derivative trading. Chambliss is a corporate lackey.
By Drafted Vet
November 16, 2008 5:13 PM | Link to this
John McCain criticized Chambliss’ 2002 race against Max Cleland.
“I’ve never seen anything like that ad,” says McCain. “Putting pictures of Saddam Hussein and Osama bin Laden next to a picture of a man who left three limbs on the battlefield — it’s worse than disgraceful, it’s reprehensible.”” (Washington Post, 7/3/2003)
By Saxby stole my Social Security
November 16, 2008 5:16 PM | Link to this
Saxby’s Gang of 10 Traitors has helped elect OBAMA. His vote for the $700,000,000,000.00 Wall Street Bailout with an added $153,000,000,000.00 of pork was done after he got over $2,000,000.00 from LOBBYIST. Saxby worked with Pelosi, Reid, Boxer & Kennedy on the ILLEGAL AMNESTY Bill & to over ride President Bush’s Veto of the PORK filled Farm Bill. If this is what our country needs we are in deep trouble.
By Dusty
November 16, 2008 5:25 PM | Link to this
Whatsa matter with you Americans? American made cars are sleek, good looking, and thrifty. Company paychecks come and go in America. The profits don’t go to Japan, Korea or Germany.
I have a GM car I bought in 2000 and it is all the things I have mentioned above. The price for it was “thrifty” and the gas mileage is great. I have never had a problem with it. I have the oil changed every two thousand miles, buy new tires now and then and that is that.
If I wanted to go “snazzy” as those sporting big foreign cars, I would buy a gorgeous Cadillac or an elegant Lincoln. I go for the moderately priced good deals of America.
If you want to help American auto makers, stop funding foreign car makers. The foreign funding is why KIA is opening a new plant while GM and Ford close their doors in the South.
That said, I do not want funding for any company, auto or otherwise. It is short term consideration to get jobs by undermining American companies. Government should not be in the car business, the mortgage industry or health care. Have we not already learned our lesson?
Stop funding foreign car makers and buy American cars. You’d be surprised how that would help our economy instead of some other country’s business welfare.
By Toyota is a God.
November 16, 2008 5:27 PM | Link to this
Why is GM in trouble? Two Words: Chevy Vega. The cadillac Cimarron was a Cavalier with sound proofing. How stupid did GM think consumers were?
WHy is Ford in trouble? Two Words: Ford Pinto, and every other POS pickup truck they built that stranded motorists on the xway in boogie-town at 2am.
Never again will I ever buy anything built by an american car company.
They dont deserve to exist. American cars aren’t just ugly, they’re death traps.
I know it. You know it. The global community knows it.
Die, GM, Die! YOu get no sympathy from me after what you did to me for decades and decades. I lived in Detroit, and the people I knew who worked for the auto companies were total P-holes. They were scum buckets who were selfish, prejudiced, and unimaginative. They thought they were superior to all others.
Let GM die. DIE GM DIE!!!!
I hate american cars. Exception to that rule: The ‘57 Chevy belair. That car is READY! ‘63 Riveria. Still one of the most beautiful creations in autodom.
I also loved the 59 buick wildcat.
But these cars broke down. stranded me. death traps. I hate american cars.
My toyota never breaks down. My nissan never broke down in thirty years.
GM didn’t care enough, Well now it’s payback time,
Let GM and FORD die. It’s the only way to teach these a-holes a lesson in life. You gotta make the good decisions and work hard and do good work, instead of Vegas and Pintos and Valiants.
US autos: LOSERS!!!!
Japanese autos: Winners!!! The camry is the greatest gift to mankind since the gelded horse.
By Dusty
November 16, 2008 5:30 PM | Link to this
DUSTY WILL VOTE FOR SAXBY CHAMBLISS. Paid Democratic libs will vote for Martin because that is what they are paid to do.
This blog is about THE DETROIT BAILOUT. If you Dems can’t keep your minds on the subject, you should not be paid for your services. You aren’t worth a nickle anyway.
By Dusty for Martin
November 16, 2008 5:38 PM | Link to this
DUSTY WILL NOT VOTE FOR SAXBY CHAMBLISS.
By LOBBYIST FOR SAXBY
November 16, 2008 5:41 PM | Link to this
During the last 8 years Republican Congressmen tried to fix the Freddie Mac and Fannie Mae mess but they were blocked by Barney Frank and Chris Dodd. The Wall Street’s Paulson along with Frank And Dodd wrote the $700,000,000,000.00 bail out Wall Street bill then added $153,000,000,000.00 of PORK for good measure. Our 7 Republican Congressmen voted against this RIP OFF of the taxpayer. Yet Saxby Chambliss (Socialist/RINO,Ga) voted for this waste. Why he has received over $10,621,716.00 from special interest much of it from BANKS & INSURANCE COMPANIES. With Saxby MONEY talks & the Taxpayer walks
By Dusty
November 16, 2008 5:42 PM | Link to this
As you can tell, TOYOTA IS A GOD,(5:27) never changed his oil in American cars, never had a checkup, jammed his brakes and gunned his motor at every stop light.
Then he whined about his American car and bought a cheapie foreign car. Then he went to work for the government supported Toyoto factory. He never made Union wages but he did not care. Company profits went to Japan but he did not care. His lil’Toyoto ran pretty good as he had learned how to take care of a car. He told everyone that Toyoto was a great NON-American car.
When thousands of American workers lost their jobs, that was OK. He had his Toyoto and Japan had his money. But he did not care about THAT. For some people, made in America is for fuddy-duddies. TOYOTO IS A GOD. Who cares about the rest??
By Dusty
November 16, 2008 5:46 PM | Link to this
DUSTY WILL VOTE FOR SAXBY CHAMBLISSno matter what paid imposters say here.
Paid libs for Martin posting here, your mother is calling. Play time is over.
By LOBBYIST FOR SAXBY
November 16, 2008 5:47 PM | Link to this
A number of politicians were actually listening to their constituents But not Saxby for a in the Bail out Wall Street. And the public has been adamant in its opposition to the plan. Whether that’s because folks don’t see the seriousness of the problem and the potential effects on them, or because they simply don’t agree with bailing out failed firms and fat cats, they have inundated their members of Congress with calls and e-mails opposing the bailout.
Maybe that will change if the deal’s terms end up more favorable to taxpayers. We’re skeptical: It appears, instead, that the bill is being loaded up and larded up with baubles and bells that may end up costing us more. True to form, the Senate bailout bill included money for race tracks, wool research and Caribbean rum. SAXBY SOLD OUT TO THE LOBBYIST.
By Geno
November 16, 2008 5:49 PM | Link to this
CONGRESS – DEMOCRATS - PLEASE DON’T BAILOUT THE BIG THREE! These are the same Big Three Corporate Executives who in the 80’s cared more about MONEY/PROFITS and Junk Automobiles, than R&D and quality, these are the same Corporate Executives who in 00’s made the decision to Manufacture Our Quote “American Cars” in Mexico, Canada, and Communist China. THE BIG THREE ALL READY NO LONGER AMERICAN, Thank You George Bush you Disgrace for this financial mess! Your the worst president ever!
By Dusty
November 16, 2008 5:51 PM | Link to this
PAID LIBS FOR MARTIN DRIVE TOYOTAS!
By Dusty for Martin
November 16, 2008 6:03 PM | Link to this
DUSTY WILL NOT VOTE FOR SAXBY CHAMBLISS. Saxby is a Socialist, Martin is a Conservative compared to Saxby.
By LOBBYIST FOR SAXBY
November 16, 2008 6:05 PM | Link to this
Saxby will vote for the BIG 3 BAILOUT, if they add an Ethanol Subsidity Got to take care of Bo Chambliss Ethanol LOBBYIST..
By LOBBYIST FOR SAXBY
November 16, 2008 6:33 PM | Link to this
**Saxby has worked hard to get things done for his friends on Wall Street.
Yes to rewarding companies that send American jobs to China, India, and other countries. In 2004, Chambliss voted against closing up $39 billion in tax breaks for companies that outsource their jobs. [Vote 90, 5/11/04] In 2005, Chambliss voted against against repealing tax incentives for domestic companies that move their manufacturing plants out of the U.S. [Vote 63, 3/17/05] He even gave those same companies a tax cut. In 2003, Chambliss voted to cut taxes on U.S. companies’ overseas income from 35% to 5.25%. [Vote 165, 5/15/03]
Won’t hold U.S. companies accountable if they deal with terrorists. Chambliss even voted against an amendment that makes U.S. businesses liable for dealing with foreign businesses that have links to terrorism. [Vote 203, 7/26/05]**
By GEORGIA TAXPAYERS UNION FOR MARTIN
November 16, 2008 9:47 PM | Link to this
$AXBY is a FAIRY WITH HIS FAIRY TAX. Desperate $axby will try anything now that the voters have spoken.-Keep bringing in all those losers telling Georgians how to vote, it just proves how UNPOPULAR $axby is.
By dc
November 16, 2008 11:55 PM | Link to this
TAX OIL TO BAILOUT & RENEW DETROIT
Cheap oil is bad for everyone & the future.
and only way detroit shifts is through stead application of carrot & stick.
By Copyleft
November 17, 2008 8:11 AM | Link to this
Why is ‘buy American’ more important than “Buy Quality” in a nation that supposedly reveres the free market, hmmm?
By Charles
November 17, 2008 8:43 AM | Link to this
It’s time to break up the UAW and get rid of the idiots who run the ‘big three’ who kept giving into them. Once they go into bankruptcy and change the way American automakers deal with employment (the free market way) you’ll eventually see a product people will actually want to buy (and without an added $4000 to every vehicle to pay for health care costs of the employees).
By Charles
November 17, 2008 8:54 AM | Link to this
It’s time to break up the UAW and get rid of the idiots who run the ‘big three’ who kept giving into them. Once they go into bankruptcy and change the way American automakers deal with employment (the free market way) you’ll eventually see a product people will actually want to buy (and without an added $4000 to every vehicle to pay for health care costs of the employees).
By Monkey Mail's Hiring I Hear
November 17, 2008 9:24 AM | Link to this
Welcome South, UAW!
By The Snark
November 17, 2008 9:26 AM | Link to this
The Snark’s big blue Ford is closing in on 200,000 stop ‘n go traffic miles and running like a champ, so if you want to let Detroit go down the toilet, don’t do it because you don’t think they can make good cars. Check out J.D. Powers’ recent reliability rankings: Ford is right up there with the japs.
Better think of the millions of people working in industries dependant upon the Big 3 American automobile manufacturers. Your tax dollars will be going to pay their unemployment benefits if they fall.
By My iPhone Beat Up Your BlackBerry
November 17, 2008 9:46 AM | Link to this
BTW Jim-Bo, it’s really BAD form to just push-out links to your posts on Twitter and to not follow others back who are following you. (Don’t fret, most MSM using Twitter at first make this terrible tatical error too. And woe to them, not us.)
For instance, my Twitter network is significantly stronger and wider than yours, but I never put out links to other people’s goodies unless they too are following me/my stuff there. Except for the fact that [I just did] (http://twitter.com/SpaceyG) with that UAW post. of yourn.
Always good to mind one’s cyber manners. Least the lack of such come back to bite you in the you-know-where. Plus, it just makes smart journo-sense to follow-back on Twitter. Never know what juicy scoop you will pick up there by doing so. Happens all the time.
And that’s your free social media journo-advice for the day. Anymore and you’d have to pay my outrageous consulting fees too.
By karl marx
November 17, 2008 10:59 PM | Link to this
u run from capitalism when if real could solve your financial crisis fools
By Jeff Bowyer
November 18, 2008 8:49 AM | Link to this
Ford buys shares in Mazda; Ford sells shares in Mazda.
BMW bought British automaker Rover; BMW sold British automaker Rover.
Daimler-Benz bought Chrysler; Daimler-Benz sold Chrysler.
Wake up, people. Hello! Hello! Do you see a pattern here?
WHY WOULD SUPPOSEDLY INTELLIGENT EXECUTIVES MAKE SUCH DUMB ACQUISITIONS ONLY TO SELL THEM A FEW YEARS LATER? (Answer: Because they were just following orders)