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Big 3 Bailout
Posted by: Dale Franks on Thursday, December 11, 2008

 
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Classic! I sent that to my cousin in California last night. I await his comments.

As I write this, the bailout is DEAD - and I for one am glad to see it die. This is the first shot in the war over Card Check - if the UAW gets hammered for allowing this deal to die, and the American people were against it, the Democrats will be making a huge mistake going forward with their butt-kissing of the union movement, who want something in return for slavishly aiding them win in 2006 and 2008.

This is great news - for the GOP and for the country. Let the Big 3 go into Chapter 11 NOW - not later, after we have spent tens of billions of our dollars to prop them and the bloodsucking unions up.
 
Written By: James Marsden
URL: http://
I saw that one earlier.
And I wonder if Green isn’t aiming at the wrong company, here.

Ford, didn’t want cash.
I have a Ford in the driveway, and their quality, if what I’m driving is any example, is first rate.



I wonder if he’d not have done better by aiming not at the car companies, but at the UAW. After all, that’s really what this bailout chatter is about; That’s what driving this mess.

 
Written By: Bithead
URL: http://bitsblog.florack.us
"I have a Ford in the driveway, and their quality, if what I’m driving is any example, is first rate."

I have a Chrysler & a Lincoln and have no complaints either. The problem isn’t so much that they are making bad cars. They are selling cars. They are in trouble because they are making a negative profit per car sold. When you lose money every time you sell a car, the quality of the vehicles is pretty irrelevant.
 
Written By: David C.
URL: http://unreligiousright.blogspot.com/
The left always is crying about CEO pay but have no problem with UAW members making so much more then average worker. Why should my tax dollars go to pay UAW when they are making so much more then me?
 
Written By: shunha7878
URL: http://
David and Shumba;
Correct, both of you.
And here’s the thing, as I said at my own place this morning;

The reason that we’re in this situation is the unfunded mandate. No, I’m serious about this. Consider it’s implications.

Usually, when you hear of an ‘unfunded mandate’ it’s a local town or city government bitching up a blue streak about money it’s being required to spend to satisfy some law or another from either the state or federal government. Usually, it’s some state program the state didn’t have money to cover, so the legislators decided to force the local governments to pay for their brain child. What happens when the local governments have to raise taxes to pay for all this? They, and not the state, or federal goervenment, gets the blame for the spending.

Well, if you think on this for very long, that’s what’s been happening with American industry for too many years… and the leading edge of that has been US auto makers. Requirements for (Insert some lawmakers supposedly good idea here… ) add in OSHA, add in the government backed union demands (Which in reality is what killed off this bailout bill.. the Unions, true to form, wouldn’t take a reasonable pay and bennie cut) and you have automakers on life support.

And of course we hear those in government and the unions blaming the car makers who have all these financial obligations imposed on them by the government, and the unions, when the very reason their current situation is unsustainable is because of the government and the unions. It’s really that simple. If the car companies deserve any blame it’s for going along with this nonsense for as long as they have. Of course it was that or go out of business. But because of government and unions, that’s what it’s come to.

Am I suggesting we go ahead with the bailout on this factor? No, because that will merely hide the problem for a little while. Government needs to back off on Regulations and from laws using the force of government to back Union demands. A bailout isn’t going to solve that issue.

What I’m suggesting is we need to publicly and properly identify the cause of this meltdown… Government and unions… and react accordingly. Given who is running our government just now, how much of a chance do you suppose we have of seeing that happen?




 
Written By: Bithead
URL: http://bitsblog.florack.us
Well, if you think on this for very long, that’s what’s been happening with American industry for too many years… and the leading edge of that has been US auto makers. Requirements for (Insert some lawmakers supposedly good idea here… ) add in OSHA, add in the government backed union demands (Which in reality is what killed off this bailout bill.. the Unions, true to form, wouldn’t take a reasonable pay and bennie cut) and you have automakers on life support.
If this is the case and cause, how do you explain Toyota and the rest making money?
 
Written By: Scott Jacobs
URL: http://
Less union.
 
Written By: Bithead
URL: http://bitsblog.florack.us
Then don’t blame unfunded mandates. Blame the thing that is not common across the board.
 
Written By: Scott Jacobs
URL: http://
You missed it, Scott;
How long have we been dealing with governments backing the unions?
Would these have been forced to deal with the unions to the degree they ahve, sans that support? I don’t think so, and neither do they.

It still comes down to government, and the unions.
 
Written By: Bithead
URL: http://bitsblog.florack.us
My friend the car historian and connoisseur says that most American cars are very well made, but that they have an image problem created by snooty liberals (and my friend is a liberal, though hardly snooty) who insist that they are garbage while lauding foreign makes.

He says the snooty liberals are talking about the way things were 20-25 years ago. And he says that he prefers American cars.

I’m an automotive illiterate (though I love old car shows, for some reason, and go with my friend who explains all the history to me), so I pass that along not in defense of the car company management (or unions) but of their products.
 
Written By: Martin McPhillips
URL: http://newpaltzjournal.com
Quality is an issue, but only a small one. The real problems are A) exorbitant demands from UAW, and B) slow R&D and factory re-tooling. Virtually overnight, the American consumer went from wanting Tyrannosaurus sized SUV’s to gas sipping economy cars. The big three have been cranking out SUV’s for years, and were not able to react fast enough when the gas crunch came and people suddenly stopped buying their cars.

Don’t get me wrong; they screwed up royally by putting all their eggs in one basket, and not having a plan for a quick retooling of their factories to get smaller, more energy efficient cars out quickly. But at the end of the day, the big three were building what we, the consumer, were asking them to build. Now that we want something different and they can’t deliver, they’re in trouble. Frankly, that’s their own fault and they should file chapter 11, learn from the mistake, and suck it up. They should also stop paying such outrageous wages and benefits to the workers in the UAW. Unemployment in Detroit is enormous; I’m sure they can get all the workers they want for half what they pay right now.
 
Written By: Ogre
URL: http://
The perception of quality issues seems to me focused in the 70’s when admittedly, the cars being built here did in fact have issues. I submit, though, that most of those isseus were car companies trying to hit price points, while dealing with labor costs and government regulartions, which in combo far outstipped any profit to be made.

That’s still the biggest problem US automakers face. the quality has gotten better, and shines particularly well where Unions are lessened in the picture.
Saturn, for example, was created with a number of goals... one of them was to get the unions off the neck of the auto-makers. They too, ahve started falling a bit as union costs escalate, and unionization takes over at Saturn.

The Fusion I drive is really a great car. Guess what? It’s made in Mexico, where the UAW isn’t much of an issue.


 
Written By: Bithead
URL: http://bitsblog.florack.us
Ogre is correct. The money is in the high end - SUVs, big pickups and Vans. The oil prices stopped sales cold. Too much inventory, too many dealers, too little demand and money is running out.

Detroit lives hand to mouth. When unions threatened to strike, management caves to keep the revenue stream coming. Executives were less concerned with profit than with stock prices. As a result, they gave the unions anything they wanted to keep the line running. The unions got greedy and figured that the democrats would save them.

Right now the democrats on the Hill are creating the perfect crash and investors know it. If they file for chapter 11, I would be much more willing to step in after they have reorganized and downsized.

However, I cannot think of any reason to put anyone’s capital into a car company run by Nancy Pelosi, Barney Frank and Harry Reid.

 
Written By: arch
URL: http://
However, I cannot think of any reason to put anyone’s capital into a car company run by Nancy Pelosi, Barney Frank and Harry Reid.
I cannot think of any reason to put anyone’s capital into a lemonade stand run by that crew.
 
Written By: Billy Hollis
URL: http://qando.net
Ogre ain’t joking about turnaround time for tooling. Any of you remember the debut of the new Chevy Camaro concept? It was absolutely fantastic looking, part of GM’s recent design renaissance. That was back in January ’06. It took till August of that year for it to be approved for production (despite its universal acclaim.) It’s STILL not on the show floor yet - it’ll be available for purchase this coming spring. This is despite the fact that it was being built on an existing platform (the Holden-sourced Zeta RWD platform) which should have saved them some R&D time. Three years - think how much the price of gas has bounced around in that time. That’s a huge lead-time for a heavily fashion-driven industry.

I’ll add to the list o’ woes the absolutely terrible design quality over the past decade or two from the Big 3. The Big 3 spent the decades after the ’70s getting their build quality up to spec, and it seem’s they’ve succeeded (though public perception still lags reality.) The problem is that they were targeting the Japanese makes so hard for build quality that they ended up matching them in styling, too. Why buy a Chevy sedan when a Toyota Camry has a better resale value and is probably more reliable? After all, they’re both bland as can be. Styling and heritage should have been the trump cards for the US automakers, but they discarded that for the longest time (Ford was the most galling of the three - they had some nicely designed machines, like the Ford Mondeo in "Casino Royale," for the European market, but none of them would make it here.) Unsurprisingly, once the US manufacturers came to their senses about styling, they enjoyed immediate success - witness the Chrysler 300C, the Dodge Charger, the new Chevy Malibu, the new Cadillac CTS, the Chevy HHR, the Buick Enclave (and other Lamba-platform CUVS,) the Saturn Sky/Pontiac Solstice, the most recent-gen Ford Mustang, etc etc. All of these cars were saturated with awards (including Motor Trend’s Car of the Year for both the 300 and CTS) and have sold well.

It’s a real shame the companies are running out of money now, because I think their product is finally at a point where it can compete and win. I love domestic autos (and proudly drive a Chrysler Crossfire;) I just hope we don’t see them finished off by a bailout that will strip away the soul of their cars for the amusement of the UAW and Congress.
 
Written By: James O
URL: http://

 
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