Just like AIG and the rest, bumping up the "what we need to survive" number, the auto industries Big-3 now want $34 Billion instead of the $25Billion they were previously pleading for. And odds are, the idiots in D.C. will most likely give it to them. 'Madame NO' was trying so hard (and failing miserably) to sound tough last night, about how they'd deal with the Auto-Exec's. But since a significant portion of their campaign funding comes from big labor, like the UAW, Pelosi's Congress will cave in. You know the Dem's aren't about to turn their backs on that giant campaign cash cow.
So like lambs being led to the slaughter, the taxpayers pocketbook will most probably be once again sacrificed to the gods of appeasement. And the concessions the auto-exec's are making, just aren't cutting it. Sorry, but a $1 a year salary isn't going to sway me. That only worked for Lee Iacocca, because he actually knew what he was doing. And making the trip to D.C. in hybrids in lieu of corporate jets (which they are now offering to sell) isn't going to be enough to persuade me either.
What would give me some interest in assisting the auto industry?
LETTING THEM FAIL!
We've been fed so much media propaganda crap about companies being "too big to fail," that I'm beginning to bleed profusely from the ears. All that bogus nonsense being circulated about Fannie and Freddie can't be allowed to go under was pure, unadulterated, crap. Let the auto-industry fail, so they can file for Chapter 11 Bankruptcy protection.
This WILL accomplish two significant things;
First off, and probably the most important, is the image it would provide to the populace. Also known as, the increasingly unrepresented masses who will inevitably be footing the bill for this travesty. Filing Chap.11, would put a "real" face on the auto industry, something people can actually relate to. It's no secret that the accurate perception of an auto industry bail-out, will only be a mediocre bandage for a much larger problem. Foregoing a bail-out and opting for bankruptcy, would show people how serious they are about resolving the real issues plaguing the industry. America by nature, is the most charitable nation on Earth by far. Even in times of strife, the majority still seems to reach down deep to eke out at least a little something for others. And they are more willing to "help" if they know it's a hand UP, not a hand OUT.
Secondly, and probably just as important, is the overly burdened contractual agreements that the auto industry has been toting along for years. And in many cases, decades. Under Chap.11, most of it can be kicked to the curb. They can pretty much crap-can just about all of the non-essential operational expenses. There's a reason why it only costs Toyota $45 an hour to build their cars, and $73 an hour to build a Ford. And you just read why. Extravagant contractual agreements.
The auto industry does NOT need $34 Billion. They don't even need $3 or $4 Billion. They need to be allowed to fall, pick themselves back up which is where any assistance would be needed, and move on.
It's time to clean house.
I'll add this here as I found it just before I hit Publish for this article. I recommend you read through it, to see exactly what I was saying;
Fritz Henderson, president and chief operating officer of GM, said that choosing the bankruptcy route would further erode consumer confidence in the automaker and "we want them to be confident in their ability to buy our cars and trucks."
News flash Fritz, they already have no confidence in your product, and don't have the money to pay the higher prices for them if they did. Dump the UAW burden to bring the cost of your product down, then they might start buying again.
And check out the immediately following comment made about the UAW;
At the same time, UAW leaders were immersed in intense discussions on possible givebacks for the companies at an emergency meeting in Detroit. Under consideration were the possibility of scrapping a much-maligned jobs bank in which laid-off workers keep receiving most of their pay and postponing the automakers' payments into a multi billion-dollar union-administered health care fund.
To quote the Soup Nazi, albeit a bit altered, "No Bail-out for Ju!"
0 comments:
Post a Comment