Auto Bailout, yea or nea?

[Kewl X5]

Look, even BMW is letting 8100 workers go...they are downsizing as we speak so they don't end up like the BIG 3. GM/Chrysler file for Chapter 11 and let them reorganize and heck, maybe they can restructure their companies without UAW.

[Krimson X]

Originally Posted by JGQ

I know and they are to some extent... that is why it is complicated.

But I am sure we all can agree that potential 2M+ jobs loss is not good for the country, nor the individual families!!

If they fail, it would be detrimental to the world economy. Forget about recession, it would be a full blown depression, IMO.

1 in 10 Americans are tied to the auto industry.

[MrLabGuy]

Originally Posted by Krimson X

If they fail, it would be detrimental to the world economy. Forget about recession, it would be a full blown depression, IMO.

1 in 10 Americans are tied to the auto industry.

The bailout ignores a fundamental problem. The Big three have failed to keep up with the changing times and there are several managerial blunders which have taken place over the last decade. The Unions have also played a large role in the demise of the Automakers.

Here is what you do...Tell the Labor Unions to use their "rainy day" funds held for walkouts and strikes on for healthcare for the workers and help save the industry which would benifit the workers. I understand there is several hundred million dollars in that fund and some estimate up to a billion dollars.

Next...What the big three need now is SALES. Congress should provide incentives to the industry by giving consumers a large tax break for purchasing a Chevy, Ford or Chrysler product. Say $5-8K for the next year. Congress should add further incentives to the automakers to produce more of their products here in the USA with tax incentives thus creating more jobs.

Giving GM and Ford a blank check to pay for Union benefits is a stupid idea and will just prolong the inevitable.

[Eric5273]

What happened to the belief in the "free market"?? If you want to have "compassion", then help start a private charity to raise money for those who are losing their jobs. Are you guys becoming soft and losing your faith in the capitalist system? If the free market works as advertised, then it will fix this problem on its own.

As for the union, they have nothing to do with the problems the domestic automakers are having. Their problem is that they don't make cars that people want to buy. If you think they do, then go trade your X5 in for a Trailblazer or Explorer.

[AzNMpower32]

Our professor sent a few links. Here's one so you can see the (high) costs of an employee.

http://www.uaw.org/barg/03/barg03.cfm

Does this make any sense at all?

First, the terms of the 1999 UAW auto industry agreements provide that no worker can be laid off for more than 42 weeks for volume-related layoffs – a decline in sales or production – during the four-year life of the agreement. After that, he or she has to be called back to work.

[The Cleaner]

What happens when the 25 billion is used up on crappy management and UAW Obligations? We do it again... The sooner the US automakers fail the better, we can then dump the UAW contracts and get some fresh new investment and ideas in the door.

If 1 in 10 workers needs this industry then lets stop bailing it out, lets rebuild it. We don't need redesigned models every couple years, we need BETTER designed products. Spare us the extra HP every year and build a better looking product. STOP using the cheap plastic on the interiors, I can't get past it to get to test drive the product. American cars loose me when I opening the door.

Finally stop with the hybrids, they are WAY to complicated for a minimal return, instead use a smaller engine or diesel. Focus on the product can only happen when the financial obligation to the UAW is removed.

[Krimson X]

Originally Posted by MrLabGuy

Next...What the big three need now is SALES. Congress should provide incentives to the industry by giving consumers a large tax break for purchasing a Chevy, Ford or Chrysler product. Say $5-8K for the next year. Congress should add further incentives to the automakers to produce more of their products here in the USA with tax incentives thus creating more jobs.

That would be great if the Big 3 mfg's weren't losing money on just about every car sold.

http://www.leftlanenews.com/study-do...y-vehicle.html

A new study by the Harbour Felax Group indicates General Motors lost an average of $1,271 for every vehicle it sold in the United States and Canada last year. Ford, meanwhile, lost around $451 per vehicle, while Chrysler squeezed a narrow profit of $144.
Comparatively, Toyota profited $1,715 per vehicle and Honda made $1,259. Nissan’s profits were even stronger at an average of $2,135 per unit sold. Harbour Felax says U.S. automakers could greatly improve their profit margins by stabilizing pricing, cutting back on incentives, and reducing warranty costs. For example, the study shows Toyota’s warranty costs at $348 per vehicle versus GM at $512, Ford at $585 and the Chrysler Group at $595.

[LeMansX5]

Ch 11 is the right way. Have to get rid of UAW. This is 2008 not the 60s.

I agree with Motor Trend editor.
Angus MacKenzie, editor-in-chief of Motor Trend magazine: "The problem is Detroit is just just structurally all wrong. It's got too many people making too many products in too many factories, selling through too many dealers..."

[JCL]

Heard a quote on the radio, not sure where they were quoting it from:

"Capitalism without bankruptcy is like Christianity without Hell; what would be the point?"

Long way of saying, the Big 3, or a portion of them, are going to fail eventually, based on past performance. The only question is how much taxpayer money is thrown at the problem before that happens.

[LeMansX5]

Heard on Charles Osgood radio that oil companies who made 90 billion should do the bailout if any.