Mitch McConnell and Senate Republicans blocked the auto bailout this week, leaving the Big 3 and the hundreds of thousands who rely on them for their daily wages holding their a$$.
Here was the only real chance for the GOP to give a serious jab at the United Auto Workers union. Both Democrats and the UAW agreed that Detroit's workers should lower their wages and reduce their benefits to match those of Toyota, Nissan, and Honda workers in the United States. The Republicans wanted the pay modification done by 2009, the Dems by 2011. The ripple effect for the Michigan economy and the American economy for that matter, will be significant.
So as far as future elections... Michigan, being a crucial presidential swing state probably won't vote Republican for generations. Everyday people across Michigan fully understand the Republican Party opposed a bailout of their states main industry. Does anyone think they will forget? You can count on Michiganians voting against McConnell and his pals with a vengeance.So, as a last ditch effort, the US Treasury will come to the rescue with a portion of the TARP funds, in an attempt to salvage what's left of the Big 3 auto-makers and their antiquated business model. Yes, there will be a timeline for the complete overhaul of their fleet options, but so long as the President is willing to go along with the TARP option, we may see the better, more lean auto industry survive.
President Bush is a supporter of the UAW and the Auto bailout at this point. Sometimes an issue will reveal strange bedfellows.
With his lame-duck status, this provides Bush with a last minute assemblage of being useful. Now, if only we could do something about those last minute pardons we've been hearing about, you know...like what has happened at the end of every other administration since the end of WWI.
7 comments:
In the American way of selling cars, the big 3 produce vehicles en masse. The vehicles get parked on dealer lots. Consumers visit the lots and select the vehicle that they like best. Car dealers have to finance the inventory parked on their lots, so the dealers engage in price wars or rebates.
The answer is to produce cars in response to demand. In Germany you order your new vehicle and if its a Beemer, Audi, Mercedes or Porsche, sometimes even if it's a VW, you're lucky to get it within 6 months. Why must we have those huge car lots taking up so much space and financing?
How does it feel to have George W Bush working with the Democrats? He's trying his best to redirect TARP funds from the banks to the carmakers? Whoooda thought?
It would also help to have a national health plan so that GM, Chrysler and Ford don't have to budget so much for the health care needs of its current and retired workers. We all foot the bill in the end.
It's amazing that the big 3 could go bankrupt in a country in which everyone must have a car.
iness model here in the US is very different compared to all the other global manufacturers.
What will happen with the Treasury stepping to the plate with an influx of cash remains to be seen, but the public outcry for the big 3 to retool their methods of car building is deafening. If this is what it took to get the American car companies to emulate European themes, then it was all worth it.
GW- showed his true GOP colors today- 12/18- from his earlier thoughts of not being the Pres who allowed GM to die- he now favors a slow bankruptcy- and who would buy a car from an organization. And if anyone challenges this thought, just remember....oh yeah
Eastern Airlines - bankrupt then no passengers and then gone!'
think about it and Regan fought the unions- OKed- dergulations and finally no FTContollers and slowly the airlines died- no not from fuel consumption increases but from lack of passengers. now 25 years later, the GOP is going to kill the auto industry. Yup they had plenty of help but the final decision is in the WHitehouse. Just when we thought George was going to do something right.
oh well,
my humble three cents
Shelly Z
DeRegulation is only part of the problem. Americans are fat, lazy and spoiled. When they feel the pinch, the whine about how bad theyve got it.
Can you imagine sending our social soakers to a country that is really struggling?
Our government gives them the means to raise a family without working and then they want cable, food stamps and a gas-guzzlin car. Somebody stop me!
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