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Originally Posted by Wagner
Multiple and similar brands are 10% of the problem, the other 90% is spelled United Auto Workers.
Mitt Romney had the best comments I heard so far:
"Chapter 11 would allow them to restructure their labor deals"
Brand reduction is definitely a step in the right direction, but until build costs are lowered the "Big 3" can not compete. It is impossible. It simply costs them more to build a car than it does a foreign company. And you don't have to graduate from "Warren Buffet's Econ Course 101" to understand that is a major problem.
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The Union's had their day. They have become a parasite and the hosts are almost dead(auto maker's incompetence aside). UAW, UFCW and even the teacher's union is ruining our educational system.
We have maintained an overall high standard of living. When our corporations are allowed to offshore manufacturing the only logical result is the inevitable reduction of our own standards.
The global economy is going to find a level amongst it's players. We delved in whole heartedly in search of immediate higher profits without consideration of the long term effect. For instance, our trade imbalance with China is absurb. We export the trash from our once booming industries to fuel their industries and import back the final goods ("now with free mercury") It's stripping our economy of the basic engine needed to grow, production and workers with earings to spend. How much garbage can we really buy from Wal-Mart? Their negative returns are now well documented. The auto industry should be a wake up call for us on all economic fronts. Buy American should be our goal not our shame.
The auto industry needs to bankrupt and re-organise, but the gubment needs to begin looking at our overall trade deficit and offshoring of business. We derive only a top tier profit from the out of country jobs and lose the benefits of workers participating in the economic engine. For once, a little isolationism might not be bad.