heal thyself

dabluzman1 · Dec 13, 2008

Arrogance.
Indifference.
Self-indulgence.

The auto industry has been all the above and more. At the cost of you and me.

Bail out, noooooo way.
Bridge loan, nope.

If the auto industry wanted to really impress the Senate and American public they should have presented a concession package along these lines:

Wage cuts: all executives - 40% cut, no bonuses for ten years and only 3% annual increases. Lay off / retire 20%

middle management 30% cut, no bonuses for ten years, 3% annual increases.
Lay off retire 20%

office worker: 20% cut no bonuses for ten years, 3% annual increases.
layoff / retire 20%

Union workers: 25% cut no incentive pay/ piece work. 8 hrs pay for 8 hrs work.
3% annual increases, layoff 20%.

retirees: cut benefits by 20%

LASTLY; cut auto prices by 20%

This is tough approach, maybe a little radical, but not so far off that it couldnt be
a formula for restructuring.

When the Auto execs come up with a plan that rivals this, lend them some money, no gifts.

dhalltoyo · Dec 13, 2008

Arrogance.
Indifference.
Self-indilgence.

The auto industry has been all the above and more. At the cost of you and me.

I agree with all of your statements.

I also was opposed to a "Bail Out" or "Bridge Loans" until I watched a Business Analyst do the math. He also had some very harsh words for Auto Execs and the UAW. I say that to emphasize that this analyst was not in favor of giving the Big Three any more money in principal, but the long-term monetary calculations certainly indicate that it will be less costly to the taxpayers.

Basically, if they go bankrupt...we lose 18 cents out of every dollar now being spent in the marketplace. It will cost the American Public more money in unemployemnt benefits and reduced spending than it will to offer a Bridge Loan.

The loan should have a provision that will allow the auto makers to nullify any UAW agreements. I was so disheartened by the fact that the UAW president agreed on camera to make concessions, but at the final hour refused to concede. Personally, I believe the UAW "fat cats" simply are protecting their own "sacred cash cows." Why? No more UAW means they will lose their grossly overpaid positions and might have to go back on the assembly line!

highway star · Dec 13, 2008

dhalltoyo said:
Basically, if they go bankrupt...

In this discussion, does bankrupt mean they go belly up? I think this is a case where it's a means to reorganize. So, the unemployment cost's, does that reflect all 3 going away? Forever? Those cars will never be built? If, and I doubt it, all 3 went away, the Japanese companies could pick up the ball and run with it relatively quickly. I'm sure the 3 would be glad to sell the plants. There would be an experienced work force to hire. That Impala you've been wanting could be a Toyota instead of a Chevy.

For sure, the UAW must be crapping its pants at this point. They certainly realize they've been obsolete for some time and this could be their death knell. I'm surprised they'd try to play hardball at this point. Major arrogance.

The point is, any time we listen to so-called "experts" telling us how things are going to be, we should have an ample supply of salt grains available. When gas/fuel prices were hitting their peak, I was listening to an "expert" talking about it on the radio. He said, with very absolute certainty, that it would never go down and we should start thinking about what 10 bucks would be like. This guy didn't even leave a little bit of wiggle room in case he was wrong. He was THAT certain. Now, we hear that we could have 1 dollar gas next summer.

mjolnir131 · Dec 14, 2008

highway star said:
For sure, the UAW must be crapping its pants at this point. They certainly realize they've been obsolete for some time and this could be their death knell. I'm surprised they'd try to play hardball at this point. Major arrogance.

When your stand with your back against the wall; arrogance is usually your only recourse