› Login to comment

7 Comments

• 

  some14some at 07:29 AM JST - 22nd December

  partial celebration, learning advance lesson from Big3 in the form of halting production.

• 

  Kwaabish at 09:05 AM JST - 22nd December

  Also, soon as the Big 3 die off, the parasite (UAW) that killed its host will need to leech on to a new host, and the first target would be the foreign automaker transplants in the US.

• 

  Weasel at 10:27 AM JST - 22nd December

  In case you missed the clue train, the reason the Big Three are failing, isn't so much that they are paying outrageous salaries to UAW employees (which is actually in-line what Toyota, Honda, Nissan, and Hyundai pay to their non-union employees), it's that the Big Three are having to pay out retirement benefits to scores more of former workers. The foreign automakers in the US haven't had no where near as nearly as many retirees, and as such, they haven't had to deal with the problem - yet.

  Guess the foreign automakers will build plants in states that have employment-at-will as the doctrine, so that way they can fire any upcoming retirees before having to hand out the gold watch.

• 

  paultaut at 02:54 PM JST - 22nd December

  The big 3 have been and continue to be a Gravy Train for the UAW. The Salary issue is not the Prime Focus but the UAW distorted the facts there a tiny bit.

  New Hires receive salaries which are in-line with what is paid to non-union foreign car makers. There are about 3,000 of those out of 239,000, the rest receive 50% more depending on how long they have been on the Job. I do not think New Hires will increase any time soon.

  All of those plants being closed for the Next month or so??? All of the laid off workers will receive 95% of their regular salaries in the interim, they can file for Unemployment benefits at the same time. Hell, they are much better off not working.

  The Retiree Pension is so generous, it puts what Congress gives itself to shame. The foreign automakers will never have the same Pension problems because they do not have to beg their workers to receive a good wage. Pension Plans are integrated with Social Security Benefits in mind not over and above them.

  The Japanese and other foreign auto makers should be rejoicing in the demise of GM and Chrysler. This is the best time for it to occur, when car sales are down dramatically anyway. Dealerships will not be a problem and parts suppliers can reduce output to sustainable levels to Ford and them.

  It will make the entire industry leaner. This will be good in the long run though painful at first.

• 

  JoiceRojo at 10:23 PM JST - 22nd December

  The Japanese and other foreign auto makers should be rejoicing in the demise of GM and Chrysler. This is the best time for it to occur, when car sales are down dramatically anyway

  No, you don't understand. It is not that simple, with that many workers that lose their job, they spend less, starting for those articles that are not absolutely necessary, like cars, (hey you can use public transportation, ride a bike, etc) If the car sales are going down, then it has an effect to every car dealer not just the big 3. That's called the inmediate effect. The second effect goes to the industries that are supplies for the auto industry, the car parts industry suffers too, causing more job losses. That's called the Direct Effect. An the third effect is that with so many job losses, no access to credit, the others industries are affected, from cars we could jump to some "superfluous" entertainment, some fancy appliances, some top of the notch electronic devices and so on and so forth, people start looking for cheaper stuff. That's called the induced effect.

• 

  paultaut at 05:29 PM JST - 23rd December

  Chapter 11 means they will continue to work, continue to buy parts, continue etc. People will not buy cars from a company in Bankruptcy. Who cares. Sales are so far down nationally, that GM/Chrysler will not be missed. Parts suppliers have already curtailed inventories and some will vanish regardless of what happens in 2009.

  Meanwhile, Guess what, GM is profitable in Asia, Brazil, Canada. So let GM split into GM USA, etc. I have problems with all of the Bailouts to begin with, why should I have to pay for GM's Pensioners too?

  It is that simple. More than Twice that many workers lost their jobs in November alone. And GM/chrysler will need another infusion before Obama even sits down. The GMAC unit needs cash, now, or it goes Belly up.

  You've seen those DiTech commercials for mortgages? Thats a GMAC unit. Lets support that too. GM has too much non auto related trash on its books. Trash which will continue to suck the life out of Taxpayers but which has nothing to do with car manufacturing.

  Chrysler is a private company which was bought by a Hedge Fund. They do not want to merge with GM, no one in the world wants GM because of the pit it has voluntarily dug itself into.

  The UAW has said openly that they will not negotiate. "We will wait until our man Obama gets into office." "we helped him get elected, he owes us."

  This is the typical GM attitude, everyone needs us.

• 

  paultaut at 04:13 PM JST - 25th December

  The Fed has just allowed GMAC to get TARP funds. GMAC is 49% GM, 51% Cerberus Capital, the owner of Chrysler. GMAC is not making auto loans.

  It is really a pity to be living in a Nation which cares more about the Politics rather what is right or wrong.

Register or Login to leave a comment