Say no to the auto bailout

Discussion in 'Economy' started by xsited1, Nov 15, 2008.

  1. xsited1
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    xsited1 Agent P

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    (CNN) -- General Motors, Ford, Chrysler and the United Auto Workers union are pouring millions of dollars into a lobbying campaign for a taxpayer bailout.

    The money devoted to influence peddling in Washington would be better spent on improving quality and finding ways to reduce a bloated cost structure, but both management and UAW have decided that fleecing taxpayers is a better option.

    A taxpayer bailout would be a terrible mistake. It would subsidize the shoddy management practices of the corporate bureaucrats at General Motors, Ford and Chrysler, and it would reward the intransigent union bosses who have made the synonymous with inflexible and anti-competitive work rules.

    Perhaps most important, though, is that a bailout would be bad for the long-term health of the American auto industry. It would discriminate against the 113,000 Americans who have highly-coveted jobs building cars for Nissan, BMW and other auto companies that happen to be headquartered in other nations.

    These companies demonstrate that it is possible to build cars in America and make money. Putting them at a competitive disadvantage with handouts for the U.S.-headquartered companies would be highly unjust.

    More here
     
  2. Caligirl
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    Caligirl Oh yes it is too!

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    Agreed.
     
  3. Isolde
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    Isolde Knucklehead

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    There is already a bailout option, it's called bankruptcy. Honestly, everyone has their hand out for a piece of the bailout pie, what a dangerous precedent that has been set. Thank you Bush, Dem Congress, et al.
     
  4. random3434
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    random3434 Senior Member

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    I have seen 3 towns within an hour north, east and northeast of me crumble because of Chrysler and GM plants closing. It was the life blood of those towns, and once thriving communities are now dying. It's a shame, it really is.

    On the other hand,they just opened a new Honda plant about 30 minutes outside of Indy, and Suburu has a fairly new plant in Layfette, IN.


    cbs5.com - Honda To Build New Car Plant In Indiana

    Camry to be built by Subaru in Indiana - Autoblog
     
  5. DavidS
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    DavidS Anti-Tea Party Member

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    For the life of me, I can't figure out why GM doesn't go into chapter 11. And I highly doubt Ford, GM and Chrysler are pouring millions into lobbying. They don't have any money left.
     
  6. ABikerSailor
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    ABikerSailor Platinum Member

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    You know, once McStupid and the rest started to go for the bailout plan, I looked at my room mate and told her that as soon as it was passed, EVERYONE and their brother was going to go to DC with their hands out.

    All the mortgage companies, bailed. Now they want to go with GM. If the idiots at the top would have pushed in the direction of more efficient, and alternative energy cars 10 years ago, they wouldn't be in this mess, but, they went in the wrong direction and tried to put everyone in Hummers and SUV's. Unfortunately, that came to a halt real quick when gas hit 4 bucks/gal, because nobody could afford to use them for anything other than a paperweight.

    But then again.....what COULD we expect from a man who failed at almost every business venture that he'd tried? Bankruptcy is a way of life for Bush Jr., and now he's managed to pass it over the whole country.

    No bailouts......let the fuckers twist like they would us.
     
  7. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Propping up bad businesses only keeps resources from being distributed to more successful enterprises. Also, American automakers have already shown that regardless of however much the government gives them they're not able to compete with foreign automakers. They simply make an inferior product.
     
  8. Skull Pilot
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    Skull Pilot Platinum Member

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    http://article.nationalreview.com/?q=YWQ1NDliZTU0MzY3ZGNiYTg2MGNiZTRlNWYzNWI4Nzc=

    The bailout would be of the United Auto Workers as much as of the automakers. It’s the UAW that saddled the Big Three with unsustainable labor costs and obligations to retirees. Detroit has desperately been trying to get out from under this burden, but Ford still lost $1,467 per vehicle in 2007, while GM lost $729 and Chrysler lost $412. Where the UAW doesn’t reign, the industry thrives. Toyota and others profitably manufacture almost 4 million cars in nonunionized states in the South.

    The case for the bailout is that the job losses from a GM going down — 100,000 directly, and many more indirectly — would be too painful to bear, and the government would be left holding the bag on GM’s pensions. This line of reasoning conceives of GM essentially as a job programs and welfare agency.


    And here's an oldie but a goodie

    A Tale of Two Auto Plants - WSJ.com

    In Arlington, GM pays union-scale wages of $26.50 to $30.50 an hour to its 2,800 hourly workers there. On average, GM pays $81.18 an hour in wages and benefits to U.S. hourly workers, including pension and retiree medical costs. At that rate, labor costs per vehicle at Arlington are about $1,800, based on the Harbour Consulting estimate of labor hours per vehicle.

    In San Antonio, Toyota will use non-union labor and will start its 1,600 hourly workers at $15.50 to $20.33 per hour, which will grow after three years to $21 to $25. Harbour Consulting President Ron Harbour estimates Toyota's total hourly U.S. labor costs, with benefits, at about $35 an hour -- less than half of GM's rates.


    So let's see, the UAW has held auto makers hostage and have been responsible for skyrocketing operating costs. U.S. Auto makers have been mismanaging their companies for years and cannot compete with foreign companies.

    Yeah lets bail them out. NOT
     
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    Last edited: Nov 15, 2008
  9. Annie
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    Annie Diamond Member

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    For too many years their profits have been going to UAW workers, retired UAW workers, management and stockholders. R & D were things of the past. As time went on, the benefits increased, the product was stagnant, others passed them by. Today one gets an inferior product, at high cost. Not a good deal. So, the competitors prospered.

    If they really want to compete against Japan, etc., Chapter 11 is the only way to get from under those contracts. Throwing billions is NOT going to do anything but pay those workers for a few more months. The signs are on the door.
     
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  10. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    :clap2:

    I've said it before, bailing out the auto-industry only postpones the inevitable at the expense of the American taxpayers.
     
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