US Auto bailout rejected
- Started
- Last post
- 128 Responses
- sputnik20
GM is a pension company which happens to make cars. not a stunner that this isn't sustainable.
- Yup. And sill own 49% of GMAC, so their a bank of sorts as well...TheBlueOne
- kona0
*pours gas on ground for all my fallen automaker homies
- JSK0
When there is blood on the street buy property.
no wait....
- TheBlueOne0
Oh well...
"GM to cut 250,000 vehicles from 1Q production
3 hours ago
DETROIT (AP) — General Motors Corp. says it will cut another 250,000 vehicles from its first-quarter production schedule by temporarily closing 21 factories across North America.
The move affects most plants in the U.S., Canada and Mexico. Many will be shut down for the whole month of January.
Spokesman Tony Sapienza said normal production would be around 750,000 cars and trucks for the quarter."
http://www.google.com/hostednews…
And whither the Dealers?
http://www.kentucky.com/179/stor…
- Mimio0
I bought my wife a Ford Edge. The car is really great actually. First American car I've owned in my adult life.
- TheBlueOne0
"We need to invade Michigan and rebuild the state from the ground up. We will be greeted as liberators, we have clear supply lines, and we can easily rebuild the auto industry with the kind of money we spend on other countries we invade. Hell, our new Secretary of State, Hillary of Clinton, spent the better part of the past year fighting for the rights of average folks from Michigan, so think of the good will we have with the public. This is very doable. Just tell Congress we will give KBR no-bid contracts to fix Detroit.
And citizens of Baltimore, Altanta, St. Louis, and DC- you better get your shit together or you are next."
- JSK0
I am for bailing auto companies out BUT they have to be competitive, get rid of unions or at least reduce their strong hold.
BUT the root of problems lie with in the company it self. They make crap products. Crap design. Crap marketing. Change indeed is a good thing. But giving them money wont change anything. They will just ask for more like AIG.
Lee Iacocca borrowed and paid the government back. But the current company is not even close of being what it used to be.
- ETM0
Only a stray musing... but if they go under, do you think car thefts will go through the roof? Think about it. Crime in general always rises sharply in bad economic times. As well, people will be looking to repair rather than buy new as money is tight. But many parts makers may go under, and there will be a shortage. So a lot of people will need hard to find parts which will make them expensive. What better than steal and chop domestic cars then? Also, so many desperate, out of work auto workers... who better to know how to steal and chop a car than those who build them? Plus think of the black market as people who need their domestic car repaired just can't afford it done through proper channels or sources.
Like I said, just a stray musing.
- TheBlueOne0
And don't take my arguments as supportive per se of the UAW which is a corrupt shitty union that deserves whatever it gets, although I am not anti-labor in general, hisorically speaking.
- JSK0
Yes, and the bank bailout has failed. Period. Credit did not and is not bout to loosen up.
- TheBlueOneOf course! It was designed to not work. Who in their right mind, pumps more money in to something that doesnt make money or system that doesnt work. It sure sounds good to boost the stock price or keep it from going to the bottom. It's just like that economic stimulus checks. Giving few hundred dollars to joe six pack do nothing.
And now they are printing money, and draining the dollar value.
- http://firedoglake.c…TheBlueOne
- I read the stimulus checks actually worked somewhat.Mimio
- Worked for me. I paid bills and didn't blow it like most schmucks.dMullins
- TheBlueOne0
"The wages are not even comparison. Its like saying complaining that shoes sales man makes less money then a designer. Different job and different educational value."
True as far as it goes - but if your going to bailout designers and shoe salesmen alike, wouldn't you expect a proportional level of concession from both in each respective industry? Or should designers just get the money with no demands, but shoe salesmen should be forced to work longer hours for less pay to get the money?
- JSK0
Also, this is not the first time that government bailed out a finance company because of detrimental effect that it would cause globally.
Long-Term Capital Management
http://en.wikipedia.org/wiki/Lon…
- JSK0
You know, I would think that GOP would jump to help the auto since they run on oil. More cars, more oil.
- JSK0
The difference is that financial system is critical to our viability. Not just US but the world. As banks fail, there is no alternative source to deal with. Since all banks do is lend money to one another.
The wages are not even comparison. Its like saying complaining that shoes sales man makes less money then a designer. Different job and different educational value.
Auto makers, while they share plants for parts, there are other players in the game to take over the slacks. The productivity is not ideal in union base. The cost is higher and get crap cars.
- Yes, and the bank bailout has failed. Period. Credit did not and is not bout to loosen up.TheBlueOne
- ETM0
@TheBlueOne That's a great question. I guess the finance companies do more to scratch the politicians backs than the automakers. That's what it comes down to.
- Well, it is a bit disingenuous of me...it's comparing apples to oranges and I'm aware of it..just making a point though.TheBlueOne
- No, but there is a point to be made there.ETM
- bankiers know how to make money, auto employees cost moneykeiTai
- If that was true they wouldn't have needed a bailout! :)ETM
- I agree, you pose a valid point.dMullins
- TheBlueOne0
What is the average hourly pay for an employee of AIG, Citibank, et al. just ot of curiosity - anyone have those figures to compare? Hmmm? And I don't remember any media coverage about asking the bank and financial workers to take a paycut before they got trillions of bucks from the taxpayers so their industry could stay afloat.
- $150/hour + soulsdesignbot
- ...and also their first born.ETM
- It's the souls part that gets ya, don't it :)TheBlueOne
- haha :)designbot
- JSK0
I hate the unions. I had too many beers cans in my car door left and enclosed in. And got charged to remove the beer cans. The last time I bought a GM car.
I always thought that NY Times was left to the left.
http://www.nytimes.com/2008/12/1…
"But the cuts did not affect most long-time union members, whose hourly pay and compensation is about $55 an hour. The figure ranges above $70 an hour when the automakers’ costs for health care for retired workers and retirement benefits is factored in."