Say no to the auto bailout

[Murf76]

Be that as it may, the bailout won't work! At their rate of spending it won't get them through the next year. While not predicted, if there happened to be some recovery starting, then the failures would kill it.

This is a great point.

As unfortunate as it is for smaller businesses dependent upon the auto industry... a financial bailout accomplishes NOTHING if the root cause of the problem isn't addressed.

The UAW has blocked every possible avenue of competitive success for American manufacturers. As Skull Pilot's previous post notes, they've increased the cost of production per unit to an unsustainable high. There's no fixing that unless the union stranglehold is broken.

So... we can throw money at it now, but this time next year they're gonna be back with their hands out again.... and still no R&D accomplished since wages and benefits will have cleaned them out again.

The auto industry has had over thirty years of lead-time, knowing that they would one day need an answer to dwindling fuel supplies. But instead of addressing our future transportation needs... they were building SUV's. They're only just now getting serious about alternative energy vehicles and so far, the best they've managed to come up with is the Chevy Volt, a plug-in electric hybrid, due for 2010.

All that said... they WILL end up getting their bailout, of that I have no doubt. For one thing, the unions have been busy buying politicians for years and for another, enough Senators who might have otherwise been willing to let them fail on their own merits will be compelled by other factors. The Big 3 will present a sad picture of economic hardship beyond their control... the current lending crisis, rises in healthcare costs, and unstable fuel costs. Then, they'll scare the living bejezus out of them with unemployment projections reaching well past their own plant doors and into the mainstream... and 'Bob's your uncle'. They'll be whistling all the way to the bank.

I'll email my Senators on Monday, for all the good it'll do me... but we're chasing our tails on this one. The only thing we can hope for is that it's resolved before Obama gets final say of it. Maybe we can get a concession or two, although I can't say I'm holding my breath on that score either.

 

[ABikerSailor]

This is a great point.

As unfortunate as it is for smaller businesses dependent upon the auto industry... a financial bailout accomplishes NOTHING if the root cause of the problem isn't addressed.

The UAW has blocked every possible avenue of competitive success for American manufacturers. As Skull Pilot's previous post notes, they've increased the cost of production per unit to an unsustainable high. There's no fixing that unless the union stranglehold is broken.

So... we can throw money at it now, but this time next year they're gonna be back with their hands out again.... and still no R&D accomplished since wages and benefits will have cleaned them out again.

The auto industry has had over thirty years of lead-time, knowing that they would one day need an answer to dwindling fuel supplies. But instead of addressing our future transportation needs... they were building SUV's. They're only just now getting serious about alternative energy vehicles and so far, the best they've managed to come up with is the Chevy Volt, a plug-in electric hybrid, due for 2010.

All that said... they WILL end up getting their bailout, of that I have no doubt. For one thing, the unions have been busy buying politicians for years and for another, enough Senators who might have otherwise been willing to let them fail on their own merits will be compelled by other factors. The Big 3 will present a sad picture of economic hardship beyond their control... the current lending crisis, rises in healthcare costs, and unstable fuel costs. Then, they'll scare the living bejezus out of them with unemployment projections reaching well past their own plant doors and into the mainstream... and 'Bob's your uncle'. They'll be whistling all the way to the bank.

I'll email my Senators on Monday, for all the good it'll do me... but we're chasing our tails on this one. The only thing we can hope for is that it's resolved before Obama gets final say of it. Maybe we can get a concession or two, although I can't say I'm holding my breath on that score either.

You know where I see this ending up? Remember the airline bailouts? Well.....now a bailout to them is pretty much automatic, and the industry still sucks!

Now.....imagine 5 years down the road.......

We bailout GM, and, because they worked a good deal, the government said they would bail them out if they needed it again. Pretty soon.....shoddy cars, crappy companies, and everyone's broke.

No.......DO NOT bailout GM.

 

[NOBama]

TWA was allowed to fail and SouthWest emerged.

We are better off for that today, IMO.

 

[Chris]

TWA was allowed to fail and SouthWest emerged.

We are better off for that today, IMO.

So true.

 

[Paulie]

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.

I've seen you mention that you are a liberal.

It truely warms my heart to see a liberal say something like this.

 

[Isolde]

I've seen you mention that you are a liberal.

It truely warms my heart to see a liberal say something like this.

Surely you have me confused with someone else.

 

[Paulie]

Surely you have me confused with someone else.

I swear I saw you say it yesterday. You're not a liberal?

 

[ABikerSailor]

TWA was allowed to fail and SouthWest emerged.

We are better off for that today, IMO.

WHAT?!?!?!?!?!?

Apparently you don't remember that airplanes USED to run on time, were reasonably priced and they didn't jack you for every damn thing that you used while flying!

 

[Isolde]

I swear I saw you say it yesterday. You're not a liberal?

Heh, I plead temporary insanity if I did.

 

[Paulie]

Nevermind Isolde, I apologize. I looked back and saw who it was that said it, it wasn't you.

I get confused sometimes around here with the recent influx of all the newbies, most of them being liberals.

It still warmed my heart though.

 

[ABikerSailor]

Nevermind Isolde, I apologize. I looked back and saw who it was that said it, it wasn't you.

I get confused sometimes around here with the recent influx of all the newbies, most of them being liberals.

It still warmed my heart though.

Ya know.....wouldn't be so hard of some of these new people didn't change their freaking avatar 10 times a week. I usually use the avatar to find them quickly, and sometimes I really don't check for the name.

At least.....until they impact me with what they say sufficiently, then I start looking for names.

 

[NOBama]

WHAT?!?!?!?!?!?

Apparently you don't remember that airplanes USED to run on time, were reasonably priced and they didn't jack you for every damn thing that you used while flying!

 

[ABikerSailor]

Back at ya sweetheart........

Admit it......you're just pissed because you know I'm right.

 

[Vel]

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.

That's a no brainer. If GM files chapter 11, then a bankruptcy judge can potentially renegotiate or void GM's contract with the UAW. Please don't let the "we must save the jobs for the common man routine" fool you. This is all about political paybacks and saving the jobs of the union bosses.

 

[rayboyusmc]

What happens when 3 - 4 million are put out of work at one time?

Shit, if we can bail out the money lenders, we can bail out the auto workers. We just need to set it up like the Chrysler bailout where we were paid back.

It wasn't just the unions that did this. Might want to look at the top execs who didn't pay any attention to what the hell was happening in the auto industry also.

 

[eots]

well..comrade..that type of thinking didn't pan out to well in your former soviet union

 

[NOBama]

 

[Kevin_Kennedy]

What happens when 3 - 4 million are put out of work at one time?

Shit, if we can bail out the money lenders, we can bail out the auto workers. We just need to set it up like the Chrysler bailout where we were paid back.

It wasn't just the unions that did this. Might want to look at the top execs who didn't pay any attention to what the hell was happening in the auto industry also.

What happens if they go out or bankrupt before they pay us back? A bailout is not going to make them more competitive all of a sudden, it's just delaying the inevitable.

 

[eots]

OMG ...That cartoon actually made the hair on my neck stand up ..I shit you not..its one thing knowing it ..but seeing it like that struck some primal cord

 

[NOBama]

OMG ...That cartoon actually made the hair on my neck stand up ..I shit you not..its one thing knowing it ..but seeing it like that struck some primal cord

Sorry, I was trying a different tactic to enlighten the 2 wheelin' Squid