Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed." Romney is not rooting for the end of the biz, but he believes that bankruptcy is the only way to save it because it will force a reset, and that will be the only way for the Detroit 3 to rectify entrenched structural problems. These include UAW contracts -- "a new direction for the UAW," executive perks -- "sanity in salary and perks," getting rid of old blood -- "management as is must go," just for starters. Romney believes that the auto industry is crucial to America's national interest in more ways than one. And he isn't against helping the U.S. automakers, but believes that a shock to the system is the only thing that can rescue it, long term. Have a look at the piece and let us know what you think -- but no need to make a decision yet; give it another few minutes, and we're sure someone else will have another prescription. Thanks for the tip, Mike! [Source: New York Times, Photo by Mario Tama/Getty]Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt" originally appeared on Autoblog on Wed, 19 Nov 2008 19:21:00 EST. Please see our terms for use of feeds. Read | Permalink | Email this | Comments More...
I agree .. US automakers have been dying a slow death .... the economy just sped it up a little ... GM wants 25 BILLION to hand over to the UAW to pay health benefits to retirees ... screw the unions .. they are the ones the killed the U.S. automakers. The UNION does not want bankruptcy because then the car companies and legally break their contracts with them .... Guess how much money the UAW contributed to the DEMS ... that is why congress wants to help them out ...
Look at all the car companies that are thriving without union labor! Even these 3 companies are making record profits in some of their world markets because those plants outside the US don't have unions. The Japanese companies building cars in the US are doing well too, because they build in 'right to work' states without unions. I spent several years in the union, and yes, there are some well intentioned ideas in the unions. However for the most part they are a huge windfall for the wannabe mobsters that run it, their families that hold all the jobs running the union itself, and the politicians that are on the dole. That is where most of the money goes. Non-union auto workers, like those of Nissan's MONSTER Jackson Miss plant, make a very good living. I lived in a state where I didn't have the right to perform my job unless I was in a union! How in the he!! is that 'liberty and the pursuit of happiness' ?!?! I had to pay a huge cut of my pay to the union, and my employer had to match that to the union, plus pay additional fees on top of that! Extortion (sp), pure and simple. Now politicians buying/paying off votes, YES. I can't afford a new car, but I will end up giving them money for nothing anyway. Edit: No need for a new post... In the union, I made $30 an hour on paper. I actually took home, after union fees, before taxes, $19 an hour. Sounds good. However, with the whole state being union workers for the most part, the cost of living was through the roof. I moved to a right to work state, took a pay cut to $15 an hour, and lived like a king because everything cost less without unions. How is big money wages good if prices go up because of it?
Oh, and raising the minimum wage is a joke too. They don't want high school kids making more money... All unions have a clause that requires an across the board pay raise when the minimum goes up! Betcha didn't know that either! The min goes up a buck, they get at least a buck raise, sometimes more, and this is over and above all other contracted and cost of living raises! Done
You make some very good points, but... How many new cars from the "Big Three" come from the US. I belive most are from Mexico, or Canada. I dont think the mexican workers have a union, and Canada is very union. I don't think there are many workers making cars like in the old days. My 94 Z28 is from the country that gave us rock and roll, as stated in their ads. I didn't know Canada gave us rock and roll. Does that make it an import? My mom had an Escort, made in mexico, and my work crown vic is made in Canada.
They all have plants all over the world... However the ones outside the US aren't on the verge of bankruptcy. They aren't asking for money to save their European plants... They aren't asking the Mexican government for the bailout either. It is all about the US branch of these companies, and all about taking care of those unions. The Canadian unions didn't get Obama elected.
All a bailout would do is prolong the inevitable. Besides didn't they already get a bailout and now they want more? I don't think this should be a bailout but rather a loan that they would have to repay hopefully this would force the soon to be Little 3 into reorganizing, not holding my breath though. We keep giving money away when does it end? They get bailed out the top execs make out like bandits while workers still end up loosing their jobs. At this rate our only choices for new cars will be foreign cars. The dealerships in my area that have closed recently have been Domestic Dealers.
Maybe if the "big three" make a car like my Hyundai accent( 5 year/ 60,000 mile bumper to bumper warrenty,10 year 100,000 mile power train, power windows, a/c, am, fm, cd, 16" alum. rims, sport sup.) all for $14,700 out the door, we would all buy from them. I wanted to buy a Chevy Cobalt, but if It was loaded like my Accent it would have cost over $19,000
"Legacy costs" alone add $2000 to the price of every car built by unions. That is for the retired workers. The rest of the overage is for the unions in general.
Ratio 411, You are a man after my own heart! I agree compleatly!! Let them go bankrupt. It is crazy how much money the CEO's of these companys make too!
thats the biggest issue with "american" cars IMO. if i wanted a brand new daily driver my money would be so much more well spent at a foregin dealership
The news was discussing the subject this AM... They said the average UAW worker makes $75 an hour! WTF!
No wonder they can't afford to make a 'nice' car that doesn't rattle like a maracca after a year. They can cut prices and add quality following the Japanese business model.
