Tag Archives: Big Three
Two very interesting and totally unrelated articles that I found whilst browsing for totally unrelated things and watching Memphis struggle inexplicably with Cal-State-WhoCaresVille.
Turning a corner, or going in a circle?
There is no word on what this what the deal entails, but on the day when Chrysler and GM were required to submit their proposal on long-term survival in exchange for the second half of the bridge loan, the Big Three automakers have reached a tentative agreement with the UAW.Â I would say that there is more here and here but there really isn’t because neither the companies nor the UAW have released the terms of the deal.
Labor costs, at least for current workers, are not substantially higher for American companies than they are for foreign (and largely non-union automakers).Â Legacy costs are the big drag (other than outdated perceptions like those of my father who refuse to buy American cars because they sucked in his childhood) and VEBA discussions (on benefits) are continuing.Â There’ll be more on this issue when it comes out… and when I finish midterms.
For those of you who missed it, our beloved Governor Jennifer Granholm, stopped by Hardball with Chris Matthews to discuss the importance of Obama’s stimulus package for Michigan and the rest of the country.Â Coupled with the release of December’s job report, Granholm apperance becomes all the more relevant. Issued just hours ago, the reports indicate 524,000 jobs were lost in December, bringing the yearly total to more than 2.6 million jobs lost. This is the largest loss since 1945, when nearly 2.8 million jobs were lost.
We all know that the “big three” will have to make significant changes in order to become profitable. This includes closing many of their dealerships. For GM and Chrysler, this challenge has just begun as these dealerships are protected by franchise laws and will need to be bought out. However with the idea that these companies are getting made over to become more profitable it doesn’t sound very enticing to a dealer to sell their dealership after these past years of financial decline that has hit the auto industry particularly hard. Thus these companies will have to come up with a large amount of money to purchase them. Had GM and Chrysler filed for bankruptcy they would have been able to use courts to close the contracts of some less profitable dealerships. They will now need to close hundreds if not thousands of dealerships nationally out of their own (or taxpayers) pocket. Â
Read the CNBC article here.
Last week Governor Gladiator (Granholm) announced the creation of nearly 7,500 jobs in the State of Michigan and billions of dollars that are going to be invested in these new jobs.
Also, last week President Bush bypassed the Southern Resistance (Senators Corker, McConnell, and Shelby) and created his own auto industry bailout. Funny thing was, the bailout turned out to be almost exactly like what the Senate would have passed two weeks ago. This will aid the industry in these next couple of months and hopefully usher a new era of strength in the American auto industry. You have to give it up to the UAW, the Big Three, Democrats, and President Bush (gasp) for working together and seeing the need to stand with the American worker.
One more thing on the Southern Resistance – (more…)
Yes, it makes its triumphant return with one of the most deserving winners the illustrious award has ever had.Â Today’s world-class douchebag is Alabama Senator, leaker-of-classified-information, Democrat-turned-Republican and hypocritical prick, Richard Shelby.Â You may remember Senator Shelby as the one who killed the bridge-loan to automakers.Â I gave him the benefit of the doubt at first.Â Perhaps he didn’t understand the concept of a “loan” or perhaps he forgot that the government will be on the hook for $150 billion in welfare and unemployment payments without a loan to automakers.Â Perhaps he was simply blinded by adherence to the concept of the free market as an end rather than a means.Â However, we now learn that Sen. Shelby really has no problem with what he derisively called the “French model” of “government subsidies for manufacturing” (more…)
Jennifer Granholm made a great point on Meet the Press this morning.Â In rejecting a $14 billion loan to the Big Three automakers which would have a long term net cost to the government of … $0, the government took on $150 billion responsibilities from decreased tax revenue, increased unemployment and healthcare responsibilities thats $500 for every man woman and child in the country.Â Opponents of the bridge loan often say that if Ford, GM or Chrysler were credit worthy they would be able to get loans in the normal fashion.Â Ignoring that the credit markets don’t work right now, they forget that the bank doesn’t face the loss of $150 dollars if the automakers can’t get loans.Â We the taxpayers do.
56 years ago next month, Republican President Dwight D. Eisenhower nominated Charles Wilson (not to be confused with Charles Wilson of “Charlie Wilson’s War” fame, or Charles Wilson, another CEO of General Motors and a member of the Truman administration), former CEO of General Motors, to be Secretary of Defense. In his confirmation hearings, he was asked if he could think of a situation in which he would make a decision that would harm the country to benefit General Motors. This was his response:
I cannot conceive of one, because for years I thought that what was good for our country was good for General Motors.
It seems the Republicans have come a long way in 56 years.
This courtesy of Countdown with Keith Olbermann.
Today Governor Gladiator (Granholm) went up against Mitt Romney (one time governor, one time presidential candidate, current fool) on Meet the Press today.
Mitt Romney. Remember when you were heralded for that innovative health care program in MA? Why do you suddenly forget that health care is the greatest weigh on our economy when you are in the spotlight? It is completely irresponsible to call for drastic wage decreases when the greatest difference are health care legacy costs.
More videos after the jump…