Automakers to Plead Case for Bailout - Page 2 of 2 - Black Enterprise
Black Enterprise Magazine January-March 2019 Issue

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expense of taxpayers. Bush would prefer that Congress loosen restrictions on the $25 billion already appropriated to build energy-efficient cars and let automakers use the money instead to temper their inclement financial situations.

President-elect Barack Obama has expressed his desire to see a bailout for the Big Three, but has said that if a bailout passed, automakers need to use the opportunity to become more competent manufacturers.

Many Republicans oppose the idea of any type of bailout. They believe that U.S. automakers are in danger of closing because their business tactics have been subpar for several decades and not because of tightened credit markets or poor sales. Sen. Richard Shelby (R-AL), who is the most vocally opposed Republican to an automaker bailout, described a bailout for GM, Ford, and Chrysler as “postponing the inevitable” on Meet the Press.

“I think it’s a mistake. They would be, in a lot of people’s judgment, a lot better off to go through Chapter 11 where they could reorganize, get rid of the management, get rid of the boards, the people who’ve brought them to where they are today,” Shelby said. “This is a dead-end, it’s a road to nowhere, and it’s a big burden on the American taxpayer.”

Last week, Treasury Secretary Henry Paulson agreed with Bush that any assistance for automakers should be separate from the bailout passed in September for financial institutions. Paulson and Federal Reserve Chairman Ben Bernanke, are scheduled to appear tomorrow before the House to update Congress on how the $700 billion bailout is being spent.

To make matters worse, neither automakers nor members of the United Auto Workers (UAW) are open to legislative changes in how they run their businesses. They do not want to make concessions to reduce executive bonuses or wages for union workers or to institute higher mileage standards. All of these actions would encourage lawmakers to push the bailout through.

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.