From AUTOBLOG...

 

Reagan did it for Chrysler...why not GM?

 

We'll see. I wouldn't trust the word of a competitor as gold though.

 

There's a difference between federal handouts and loan guarantees. The fed sort of "co-signed" for Chrysler in the event of default. But no federal money ever went to Chrysler. They paid their bridge loans and tore up the guarantees ahead of schedule.

A handout to GM would be a very different situation.

 

If the government really wanted to help GM, they'd order special ops to take out all the retirees. No joke...that would really help.

 

I was listening to KYW 1060 this morning. Chinese auto manufacturers only have to devote $50 per vehicle towards healthcare whereas the American manufacturers devote about $1600-$1700 per vehicle towards health care costs!!

Yikes!

I do think the workers need to put a bit more of their earnings towards the cost.

 

Same story with the Japananese. Their government subsidizes health care, therefore their industries dont have to--gives them a great comparative advantange.

That said I'm hardly advocating national health plans...

I also wrote a great column about this...but no one read it when I posted it.

 

Could you send me the link Dave?

 

OMG I LOVE YOU. DUDE im like really appreciative of you reading this. (btw the love you thing was a joke..but not really) let me dig up that link for you


Here you go:

Its called "Save Your Own Ship"

http://forums.bradbarnett.net/index.php?sh...78&hl=big+three

 

Intresting paper.

 

Haha, YESS. Now TWO people have read it. Thanks man. Ive never had an audience of this size before. (i wish i was joking)

 

The government wont let GM go under. As much as I dislike GM products, there is too many people depending on them for employment and would ripple through the economy. I do think they need to kick unions to the curb. They serve no function in today's society. Why should someone who does the same task, over and over, be earned $70K+. Yes, he's been there for 32 years, but it's not 32 years experience. It's 1 year of experience, repeated 32 times. The foriegn auto makers with plants in the US, do not use unions. The hire and fire as needed. Much like the rest of America. I'm patiently waiting for GM stock to go under $10 so I can buy it up.

 

That would probably be a good investment, as long as they keep making their cars better and are creating fresh ideas.

 

Dave, that was an excellent paper. I said 40 years ago that unions would be the death of the Big 3 and it appears that's what happening now. You also have to add questionable build quality and boring cars to that equation. It's no surprise to me that they're struggling.

 

Interesting paper. And very well written at that Dave. While I think the American manufacturers have caught up in quality, IMHO, I must agree that the UAW is not beneficial to the good of the company. Unions had their place in the days of old but now they just bully for more money it seems.

 

Dave- I thought your paper was great! Why don't you send the Little 3 a copy just for kicks!

 

Haha, thanks guys. Maybe I should send it to the UAW while I'm at it...

 

Good article, bro - touches on most of the salient issues. The only thing you forgot were the ridiculous salaries on Mahogony Row and the golden parachutes for top executives (some of the problems ARE, in fact, the Big Three's own doing).

Was this for a College paper?

 

Haha, not the most prestigious of publications. My high school paper =/


Dang, I responded to that in a minute...makes me seem a little desperate eh? Oh well.

 

The legacy costs are large part but the quality issue is as much part to blame. The UAW has a strangle hold on Ford and GM they can't do anything with out UAW sewing them.

The reason foreign manufactures are leading the way is this. If a Toyota working doesn't do his work properly guess what he is fired. A UAW employee will never be fired for doing a horrible job and get paid God knows how much to do it poorly I may add. The unions have their hand in everything. Shoot GM can't even close a plant with out asking UAW. Their own plant!

Which in turn you get a poorly built car. There is no wonder Toyota has no labor unions and building their plants in right to work states if they build them here at all. They don't have unions blocking their way to build a better car.

Good paper by the way, very interesting.