ORIGINAL: BLK 6050
Several points come to mind (besides the one on top of my head):
Why is Chrysler saying that they need money now, IF they indeed have 11 Billion in cash?
Because they are burning through that rapidly, and they are thinking ahead for a change.
Many years ago (and may still be the case) Chrysler (and perhaps the others) had a special, and closer parking area for those who drove their products…imports could not use the lot.
It must also be remembered that even if the “import” was built here…the money still goes back to the country of origin. Sure it pays for American pay checks…but the profit still goes overseas.
Just read that the average auto worker makes $71.00 an hour…..WHAT THE…….(sorry but it’s production work…..they are not doing brain surgery……it’s basically unskilled labor….
One of the schools of thought is that if they declare bankruptcy, the auto worker's wage will be forced down. I know I'm going to be flamed for saying this, but frankly that is just plan ridiculous. There were several factories (a battery factory, chain factory, Kawasaki, etc) where I went to college and I knew the people who worked there because of family connections and they were getting paid way less than that and although they are not rich, they are doing just fine. I do not see why they deserve to get paid more to do the same functional work just because they have a mob backing them.
Auto Chairpersons willing to take only $1.00 dollar a year to help the situation….what a joke….they aren’t giving up any thing. They still get bonuses and other perks that far exceed what their “pay” is……It’s a snow job to my John Q. Public think they care…They should be “canned” if their companies are in such bad shape….
IF the whole “bailout” or whatever you want to call it is to work you must get the government out of the picture…..they are the problem. Their mandated café standards, safety standards, etc., etc., have in many cases made Detroit what it is today….get them out of business…………
You're absolutely right about that. Bill Ford did the same stupid thing and it turned out he was getting more from doing that than just taking a fixed salary. Just pay them a set wage of half of what the Japanese get paid and adjust the pay accord to profit or loss. You are also correct that all of these regulations are what is hurting them. They have to keep raising the fuel economy, while cutting emissions (two things which often work against each other despite popular belief), and raising safety. The reason why I'm opposed to a loan or bailout is that the Government will make these things worse. It's time for the Big Three to grow some courage and say to them. "If you want to still have the auto manufacturing industry in the U.S. then you need to back off and get lost. And remember, if we go, many of you will be coming with us."