The Big Three have been hoping to get a large chunk of the financial $700 Billion Dollar bailout ever since it was first spoken of. After being shot down several times, a bipartisan “group of auto-state senators” hope to bring this struggle of the Chrysler-Ford-GM battle back to the US Senate’s attention.

Update – As of this afternoon (Nov 20 2008) The Senate decided to now put all talks of an automotive bailout on hold until December.

From AP News Wire:

WASHINGTON (AP) — A bipartisan group of auto-state senators reached a last-ditch compromise Thursday to throw Detroit’s Big Three a government lifeline worth billions, but the plan faces an uphill battle in a reluctant Senate.

With the auto bailout stalled, the fate of hundreds of thousands of workers and Detroit’s once-venerable car companies hangs in the balance.

Senate Majority Leader Harry Reid, D-Nev., canceled plans for a vote on a bill to carve $25 billion in new loans out of the $700 billion Wall Street rescue fund. The Bush administration and congressional Republicans oppose that plan.

Warning of economic disaster, Democrats and Republicans from auto industry states reached a deal Thursday on an alternative package that would temporarily divert money from a fuel-efficiency loan program to cover the Big Three’s immediate costs. But it was unclear whether it could draw enough support to pass.

The group, led by Sens. Carl M. Levin, D-Mich. and Kit Bond, R-Mo., scheduled a news conference to announce details.

Even if agreement can be reached to consider their plan, Reid signaled earlier Thursday that the Senate was not likely do so until after Thanksgiving.

“We have some procedural roadblocks,” Reid said.

With all sides sensing doom for a Big Three automaker rescue, the finger-pointing proceeded.

White House press secretary Dana Perino on Thursday blamed Reid for not allowing the Republicans’ separate auto-aid plan to come up for a vote.

“Unfortunately it looks like Sen. Reid just wants to pick up his ball and go home for the next two weeks — two months — for vacation,” she said.

Pressed on what the White House would do if Congress can’t agree on a plan to rescue the automakers this week, Perino said she thought lawmakers would return after the Thanksgiving holiday for an emergency legislative session if an auto company was in imminent danger of collapsing.

“I can’t imagine a scenario where they wouldn’t come back, unless the answer is that they just don’t care. And if that’s the case, then the American people ought to know that.”

Congressional Democrats countered that the Treasury Department already had the power to grant emergency funds to the automakers, but the Bush administration opposed the approach.

Former Massachusetts Gov. Mitt Romney stood steadfastly behind forces opposing the bailout.

Speaking Thursday morning amid growing signs of gridlock in Congress, Romney said, “There’s no question but that if you just write a check, you’re going to see these companies go out of business ultimately.”

Romney, who had run for the Republican presidential nomination, told CBS’ “The Early Show” that he doesn’t want to see the carmakers go out of business, “but we don’t want them to continue business as usual.”

The leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC painted a grim picture of their financial position during two days of congressional hearings, warning that the collapse of the auto industry could lead to the loss of 3 million jobs. Detroit’s automakers, hurt by a sharp drop in sales and a nearly frozen credit market, burned through nearly $18 billion in cash reserves during the last quarter — about $7 billion at GM, almost $8 billion at Ford and $3 billion at Chrysler. Both GM and Chrysler said they could collapse in weeks.

“I don’t believe we have the luxury of a lot of time,” GM CEO Rick Wagoner told a House hearing.

Alan Mulally, the CEO of Ford Motor Co., said the company had enough cash reserves to make it through 2009. But United Auto Workers union president Ron Gettelfinger said a bankruptcy could spawn others.

“If there’s a Chapter 11 (for) one of the companies, it will drag at least one other with them, if not all of them. And I do not believe Chapter 11 is where it will end. It will go to liquidation,” he said ominously.

Automakers ran into more resistance from House lawmakers, who chastised the executives for fighting tougher fuel-efficiency standards in the past and questioned their use of private jets while at the same time seeking government handouts.

“My fear is that you’re going to take this money and continue the same stupid decisions you’ve made for 25 years,” said Rep. Michael Capuano, D-Mass.

The stakes are high. The Detroit automakers employ nearly a quarter-million workers, and more than 730,000 other workers produce materials and parts that go into cars. About 1 million more people work in dealerships nationwide. If just one of the automakers declared bankruptcy, some estimates put U.S. job losses next year as high as 2.5 million.

The White House and congressional Republicans have urged Democrats to support a GOP plan to divert a $25 billion loan program created by Congress in September — designed to help the companies develop more fuel-efficient vehicles — to meet the auto giants’ immediate financial needs.

Sens. Carl Levin, D-Mich., Kit Bond. R-Mo., and George Voinovich, R-Ohio, are trying to broker an alternative that could provide bridge loans or a guarantee that the fuel-efficiency loan fund ultimately would be replenished. Negotiators were discussing a scaled-down aid package of $5 billion to $8 billion to help the automakers survive through year’s end.

But it was unclear if any progress could be made. Democrats strongly oppose letting the car companies tap into the energy loans for short-term cash-flow needs.

Despite the gridlock in Congress, there could be a contingency plan: a return to Washington in December for another postelection session to try to strike a deal.

House Majority Leader Steny Hoyer, D-Md., noted that Democratic leaders were planning to gather for an economic conference the week of Dec. 8. “That is available,” Hoyer said. “The year has not ended.”

- AP Writers Ken Thomas, Julie Hirschfeld Davis, Sam Hananel, Tom Krisher

Few would believe this would actually happen after the billion dollar financial institution bailouts of recent history, but Congress gave it the Ok. GM, Ford and Chrysler are on their way to a government bailout in the amount of $25 Billion Dollars. That’s a lot of Jeep Liberty’s.

But the bailout is actually supposed to go to the ever increasing pension and health insurance coverage costs for automotive workers and retires. The package includes “$25 billion in loans for the beleaguered Detroit automakers and several of their suppliers.” Detroit doesn’t want it to be called a bailout, but what else can you name free money from the government estimating around $5 billion dollars for each of the three companies up front, in addition to smaller amounts for their suppliers.

This $25 billion looks to be only the beginning, as automotive giants plan on applying for more aide in the same or even greater amounts. Whatever the future holds, present day Detroit needs help, ASAP. General Motors post losses so negative that they fear brands like Chevrolet may not be in existence over the next 1 – 2 years.

Chrysler and General Motors – at first, it seemed like a match made in heaven. But recently it become apparent that GM wants to completely take over Chrysler, and even cut much of Chrysler’s and Dodge’s product line. Things could get ugly, as all mergers do. One positive outcome will be the rebranding and combination of car models. So, if you have your fantasy car maker league, who would you merge? We have a few top draft picks we’d like to share with you.

Mazda & Renault

Both Mazda Motor Co. and French car maker Renault are known for their eccentric design concepts and long lasting vehicles. Mazda has been at the forefront of unique looks with their Nagare or “flow” concept since back in 2005. Earlier this month they introduced their small city car Kiyora (originally dubbed MAZDA1) at Paris Motor Show 2008 – this little trouble maker wowed those in attendance and showed that a pretty car could be both functional and fuel efficient.

Renault also stunned passerby’s in Paris with their ZE concept. ZE’s acid-green windows help provide insulation, saving energy that might be used for adjusting the climate. The vehicles exterior uses a pocket of air to maintain a constant temperature.

If these two powerhouse foreign automobile companies were to merge they would probably corner the European and Japanese markets instantly. Their designs would become legendary and sales wold skyrocket – until they were accused of being a monopoly by all the other lesser-selling car manufacturers.

HUMMER & Mini Cooper

HUMMER has seen sales drop for years, thanks to boring deigns and a troubling gas price spike. Mini, on the other hand, has seen a steady sales trend from British busines people to hipsters alike. HUMMER’s H3 is more SUV size and less bread delivery truck. Mini recently launched their Mini Clubman revamp, which is still only the size of your average 2-door coupe.

If these two car companies merged – they’d probably produce a normal size automobile. This regular sedan would have obtuse, almost grotesque fenders, but would have comfort and dash design that would…well…probably just confuse the average HUMMER driver. Of course, HUMMER is on the GM chopping block, and Mini may just have the chutzpah to pick them up and give their exact opposite a try – even though it would most likely equal Mini-suicide.

Kia & BMW

Kia’s still a new brand in the grand scheme of things, and though their sales and vehicles are pretty basic, Kia sales seem steady for a flourishing car company. BMW, on the other hand, is one of the most well known car makers in the world. Maybe, if BMW was brave enough to take fragile, tiny Kia under their wing (and out of GM arms) it could be transformed into the world’s greatest automotive company in the history of human kind! BMW-Kia would rise up and crush all other automakers with luxurious, economic and eco friendly rides which will impress everyone from high school students to businessmen.

Ok…things are getting a little out of hand, but with GM and Chrysler coming closer and closer to being one American automotive giant we could see a trend of buy outs, mergers and partnerships that will lead way to forming a whole new car selling battle.

When two corporations decide to become one – someone has to lose their head – and it’s usually the assembly line worker. With General Motors and Chrysler, the nation’s Number 1 & Number 3 auto maker going back and forth about mergers, UAW (United Auto Workers) reps are none too pleased…in fact, they absolutely oppose any such merger of two automotive giants.

The UAW is highly concerned that any merger would be a huge threat to the jobs of thousands of automotive workers on both sides, throughout the United States and Canada. One UAW representative called the potential merger “an absolute catastrophe.”

Rumor and speculation of such a partnership has been billowing out of Detroit (and all over automotive blogs) since last Friday. According to both sides, each company is seeking outside financial prospects. As for now, it seems any such talks are on hold, presumably because of the world financial crisis. Sure, it has absolutely nothing to do with the story leaking out.

Industry analysts predict severe job cuts, especially if redundant models (pickups or mid size sedans) that were produced on separate Canada or US assembly lines were to be slashed. UAW President Ron Gettelfinger said “I personally would not want to see anything that would result in a consolidation that would mean the elimination of additional jobs, but we’ve not had any official discussions at all with any of the companies.”

Canadian Auto Workers President Ken Lewenza said this week; “You’d have to be worried, if a merger did take place, about the consolidation of product lines, we would be very much concerned about the job security of our members. On the surface, it’s not something we would support.”

GM is not in any position to buy out Chrysler, or so it seems. The company is losing $1 Billion dollars almost every time Bob Lutz appears on TV. A merger would only increase GM’s problems and that Chrysler has nothing that GM needs. We will have to wait and see, once stocks stop hemorrhaging, if any such automotive merger will go through.

Update -October 16th 2008 – General Motors reported that one plan they had while in talks with Chrysler/Cerberus was to absorb the company, phase out similar models and eventually demolish the Chrysler and Dodge tags all together. GM would keep Jeep and Chrysler’s minivan line (because let’s be honest, how many Uplanders do you see going around?) – GM would gain Chrysler’s $11 billion in cash and remove a competitor who accounts for 1.5 million units per year.

————

Over this past weekend news leaked that General Motors was in talks with Chrysler parent company Cerberus Capital Management LP about a possible merger. And if the merger won’t happen, GM may just go ahead and buy Chrysler all out.

Talks of a merger unofficially began last month, but Chrysler officials deny any such buy outs are open for discussion. Citing a rebuttal from Cerberus, Chrysler is not in the practice of making their potential business matters public. They claim to be exploring many “global partners” in light of hard financial times, both in the stock market and throughout the automotive industry.

One theory claims that if not for the recent financial-apocalypse this supposed merger might have gone through. Parent company Cerberus would have ended up owning a major chunk of the combined ChrysGM-hybrid, but now would not be sole proprietor.

Negotiations between the 100 year old General Motors and the 83 year old Chrysler may restart if the stock market can bring itself back up. Needless to say a team-up between these automotive giants would be one of the largest in the industry.

With the possible combination of CDJ and all GM makes, would we one day drive past our local Chrysler-Dodge-Jeep-Chevrolet-Buick-Pontiac-Cadillac-GMC-HUMMER dealership? All those car sales persons are going to have to learn a lot more about makes and models. Can we call the new company ChrysGMuickPontiHUMCHevillacDodgJeep?