Bailout Watch 393: White House OK With C11. In Theory
Well, they would say that, wouldn’t they. I mean, you can’t very well say “no matter what kind of business plan Chrysler and GM present us, we’re not throwing these companies into Chapter 11,” not if you’re trying to appear tough on bailouts and the causes of bailouts. And The Detroit News is talking about politics, which is all about appearances.
“We’re going to need a restructuring of these companies. How that restructuring comes about is going to have to be determined,” said David Axelrod, a senior adviser to President Obama, said on NBC’s “Meet the Press.”
Axelrod’s comments came in response to questions about a Wall Street Journal report on Saturday that GM will offer two options when it files its federal restructuring plan on Tuesday: A continued infusion of federal aid to keep the company in business, or a government-financed bankruptcy . . .
“We need an auto industry in this country,” Axelrod said Sunday. “We have an interest in seeing the auto industry survive. But it’s going to take a real restructuring.”
"C11 is unlikely since that would drastically effect the UAW. The UAW’s far to rich contract is not going to be pared back with a C11, so the government will need to keep injecting billions into GM every few months". Somebody's been drinking the Kool - aid.The banks get W. to beg congress for Hundreds of Billions,but the UAW (by extension) get reamed along with their CEO's? The UAW could work for free and it wouldn't help. Why should the Auto Workers take any of the blame? They buy their own products. The UAW(represented worker companies) aren't the only Car companies hurting:Toyota, Nissan,Honda,Mercedes,Citroen;on and on.The rare exceptions are those Korean automakers via a fluke in the exchange rate.95% or more of the car companies are bleeding, and it's the UAW's fault....PLEASE.
"If the UAW has so little culpability for the cars they build, then why are they so handsomely paid, in terms of salary and benefits for what little input they claim to have, and why are they so unwilling to take one for the team when the stakes are allegedly so high? Almost all of the world’s automakers are suffering to various degrees in this economy, yet it is the three manufacturers that have UAW representation of their workers that are hurting most. I don’t think that is just because they are American and America can’t build cars…" The Union Haters fail to see the reason that there was a union in the first place.The big 3 mistreated their workers,that's why they formed a union. It's all historical.The UAW workers aren't as handsomely paid as you seem to think...the media has distorted the hourly rate by including retiree costs...the Big 3, especially GM, have huge numbers of retired employees.Do workers in the USA have the right to make good wages? Do you actually think that lowering the wages and benefits of the UAW will cause the price of US manufactured cars to come down? The UAW already made historic benefit cuts in 2007....and they are continuing to make active workers' pay and benefit cuts as I write this. GM has steadily siphoned off money to other countries...Mexico makes pickups and commercial trucks, also Buick made.makes the Rendezvous there.And the Avalanche. GM makes Buicks in China for their market. I'll post a list of links, if possible to show the world - wide [GLOBAL !] Auto Manufacturing crisis. It's a great time to be a Union Hater. The Big money men have all went away with the loot, and the rest of the world is left to pick the bones clean.
Here's a few links that looks at the global economy, and Auto Manufacturers' problems....only in America do we blame everything on the workers. http://news.bbc.co.uk/2/hi/asia-pacific/7893924.stm http://news.bbc.co.uk/2/hi/business/7893843.stm h0ttp://news.bbc.co.uk/2/hi/business/7893965.stm http://www.msnbc.msn.com/id/29179286/ http://news.bbc.co.uk/2/hi/business/7882913.stm http://www.manufacturing.net/News-Japanese-Auto-Sales-Plummet-020209.aspx http://www.eetimes.eu/automotive/212903055;jsessionid=CRSGGDTQHIEIUQSNDLSCKHA http://www.automotive-business-review.com/article_news.asp?guid=81773E78-F3AA-4A3B-8AD0-3331534F8997&z= http://www.just-auto.com/ http://www.irishtimes.com/newspaper/breaking/2009/0213/breaking51.htm http://www.caradvice.com.au/1238/australian-car-manufacturers-scared-of-imports/