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What do you guys make of this? SCARY that it's come to this, the potential end of GM, Chrystler and Ford on the rocks as well.
While I did not like the government bailouts of the finacial institutions, still ticks me off, but I DO think it was needed to stave off even greater financial hardship (I don't like how it's being handled, but that's another story...)
But now AMEX is asking for money...the car dealers want a bail out.
I really do understand the ramifications of major US automakers shutting down... but come on... how much can private industry expect the goverment (US) to take on?
Decades of mismanagement, decades of UAW bullying, decades of building purely crappy vehicles made this the perfect storm. I say the government lets most of the Big 3 sink...not all, but most. Pontiac, Hummer, Buick, and GMC can be cut, but my big gripe is how management didn't want to hear what kind of cars we wanted to drive. Instead, they gave the green light on what that thought we should drive.
Another issue that is beyond my comprehension is this...
Take a Honda Accord and a Chevy Malibu. Same size, about the same price, but the Honda has legendary quality and stronger resale, AND it's a profitable vehicle. The Malibu is marginal on turning a profit. Why? Well, the Accord is built with non-union workers. The guy screwing in the headlights is making 20 dollars an hour...a fair price for that skill set. The UAW worker doing the same job? 42 dollars/hour PLUS little to no employee pension contribution and little to no employee pay-in to their health plans. It just doesn't make sense.
So while the Accord and Malibu are similar, Honda turned a nice profit on the Accord. Chevrolet barely made money on the Malibu. So, as the years dragged on, Honda built a nice war chest. GM was too busy giving in to union demands with bloated wages.
I also want to add that whomever accepts a bailout needs to have their CEO, CIO, CFO, and COO resign immediately with no severance and no golden parachutes.
Decades of mismanagement, decades of UAW bullying, decades of building purely crappy vehicles made this the perfect storm. I say the government lets most of the Big 3 sink...not all, but most. Pontiac, Hummer, Buick, and GMC can be cut, but my big gripe is how management didn't want to hear what kind of cars we wanted to drive. Instead, they gave the green light on what that thought we should drive.
Another issue that is beyond my comprehension is this...
Take a Honda Accord and a Chevy Malibu. Same size, about the same price, but the Honda has legendary quality and stronger resale, AND it's a profitable vehicle. The Malibu is marginal on turning a profit. Why? Well, the Accord is built with non-union workers. The guy screwing in the headlights is making 20 dollars an hour...a fair price for that skill set. The UAW worker doing the same job? 42 dollars/hour PLUS little to no employee pension contribution and little to no employee pay-in to their health plans. It just doesn't make sense.
So while the Accord and Malibu are similar, Honda turned a nice profit on the Accord. Chevrolet barely made money on the Malibu. So, as the years dragged on, Honda built a nice war chest. GM was too busy giving in to union demands with bloated wages.
Get rid of the UAW and then we talk about it....maybe BUT the unions MUST GO.
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