Tuesday was a busy day for this industry: the November US motor vehicle sales data was released plus lot's more happening. The Big 3 of Detroit submitted their formal loan requests to Congress, and hyped the news the senior execs would be earning $1 a year, sell the corporate jets, and drive hybrids in the 10-hour journey to Washington for their next testimony. There was talk about their “exciting” plans and so forth. Finally, House Speaker Nancy Pelosi, in what appeared to be a remarkably unprepared news conference, indicated that Congress was waiting to help the automakers if they were prepared to help themselves.

Econoday reported:

"Vehicle sales may be finding a bottom, at a 7.5 million annual unit rate for domestic-made models in November and little changed from October. Motor vehicle domestic sales Consensus Forecast for November 08 had been a 7.81 million-unit rate, ranging from 7.40 to 8.60 million-unit rate. Levels unfortunately are at lows not seen since the early 1980s, also a time of recession, but it's the month-to-month change that moves the markets and today's data points to stability for motor vehicles sales in next week's retail sales data, a component that makes up about 17 percent of total retail sales."

As to the support the automakers need, GM says the total is $19 billion between now and March; Ford is $9 billion; and Chrysler $7 billion. In the total scheme of bail-outs to bankers, these figures are reasonable. But congress ought to be drafting legislation that addresses the whole problem, which has to do with competitiveness; pensions and healthcare; consumer credit; vehicle safety, mileage and pollution; the Detroit economy; and the unfair advantage that vehicle importers and foreign-controlled domestic manufacturers presently have.

The whole situation has to be addressed and resolved. Otherwise, the new Administration will be facing a series of these emergency meetings.

The good news is that, with respect to Detroit’s Big 3, there is nothing on the horizon that cannot be fixed. Yesterday, the equity market got a lift by the automakers; tomorrow it will be the economy.