UAW Still Made No Sacrifices to Make General Motors Competitive

First of all I like Mitt Romney, despite the a relatively shallow campaign he ran in 2007 with lots of pandering. And as a general note, I thought it was pretty unfortunate he got hit in the GOP primary so hard because of his religious background. Perhaps that's why he pandered so much because he wanted to be "Accepted as one of US". ICK.

In any event, he was on the Sunday morning shows talking about the auto bailout. Mitt Romney and his father have big ties to Michigan and Detroit so his take on it was interesting. His big pitch--- the US and the UAW should distribute their shares to taxpayers and union members directly. His big concern is government influence

1) The government already influenced these companies to their core by having comparatively low fuel standards that left these companies naked at the beach when the tide went out. Who cares if we own 70% now, the UAW owns it really. 70% of nothing is still nothing.

2) I as an American citizen will not be checking my mail any time soon for my GM stock certificates. If I got them, I'd burn them for biomass fuel rather than hoping for any kind of big pay day. The biggest travesty is the UAW, which as usual, made no sacrifices to make these companies competitive other than some Viagra benefits.

3) Ron Gettelfinger laments the loss of auto jobs abroad on one hand but strangles these companies with ridiculous rules that pay them for not working, or give them unlimited health and retirement benefits that are wholly uncorrelated to the health of the company. This normally would have fixed itself with a bankruptcy but the the government has interjected itself to save the union with $50 billion in cash to let the UAW suck the life out of GM, for just a few more years.

Comments

[Mad Hedge F...:]

And don't expect any. I'll tell you what GM's problem is. My dad was a lifetime GM customer, religiously buying a new Oldsmobile every five years. Once he even flew to Detroit for a factory tour and drove his new prize home. Thirty years ago I told him he was doing GM no favors by buying their cars, and the only way to force them to improve a tragically deteriorating product was to buy better made German and Japanese vehicles. This was right after the State of California forced auto makers to install seatbelts on new cars. Airbags and ABS brake systems were still years away. His response, "I didn't fight the Japanese for four years so I could buy their cars." (He was a Marine). GM's problem is that my Dad passed away seven years ago. Of the original 17 million WWII veterans, 1,500 a day are dying, and there are only 1.5 million left. All of them loved Detroit because it built great Jeeps, Sherman tanks, and half tracks that brought them home from harm's way. Their kids prefer German, Japanese, Italian, Korean, and soon, Chinese and Indian vehicles. It is no coincidence that GM's problems really accelerated with the passing of the "greatest generation." During the last 35 years, when Japan's share of the US car market climbed from 1% to 40%, I begged GM to mend their ways and build a quality, price competitive product that Americans wanted to buy. They answer was always the same: "Nobody can tell GM how to build cars." Maybe someone should tell them.

Jun 01 01:42 PM

[spqrusa:]

I agree with MHFT - GM relied on the boomers and pre-boomers as the customer base. My problem with GM was the quality of the dealerships and warranties. My one, and only, GM car visited the dealer too often, and it returned with more problems at every visit. Maybe I just got a bad car, but the internet is littered with GM dealer complaints. I can't say the same thing about my BMW, Audi or Toyota cars.

Jun 01 01:57 PM

[B.M.:]

Romney is an idiot politician, giving unrealistic politician solutions. The answer to the problem was to let GM go bankrupt in December thru normal channels. distributing GM shares to the public is logistically impossible, who gets what and on what basis? The solution to the problem already existed in the form of bankruptcy, why change it?

Jun 01 02:28 PM

[Henry Buttal:]

MHFY makes a great point. My father is a self-described "depression baby"; his father fought in WW II.

AT 74, my father, who for many years as an independent construction contractor purchased GM Suburbans regularly, bought a new car at the beginning of the year.

He bought a Honda Accord, as has his sister who is still in her 60s. I tried to get them to look at the Caddies, but with no luck.

Jun 01 02:34 PM

[PastTense:]

"The government already influenced these companies to their core by having comparatively low fuel standards that left these companies naked at the beach when the tide went out."

No, you have the situation completely reversed--the companies told the government they wanted low fuel standards (particularly for SUVs)--and got them.

Jun 01 02:35 PM

[NorthernDoc:]

There is a difference in culture between the American and Japanese companies:

With our Celica, the service staff would go out of their way to make sure that either my wife or I were attended to promptly, well taken care of, and that nothing was done that wasn't required. The car was generally returned having been washed down, and having had a quick vacuum, if it was in for any major service.

On the other hand, when a local GM dealership got my parents Oldsmobile into an accident while servicing it under warranty, we had to fight with them to get a loaner vehicle, and not once did we get a formal apology.

That was the last American vehicle that anyone in our extended family has ever even considered purchasing or driving. We have all since moved on to Lexus, BMW, Mercedes, and have had no regrets.

The death of the American car manufacturer is at their own hands, nobody elses, for they made their own choices. I, for one, will shed no tears.

Jun 01 04:00 PM

[China Expert:]

After being a major contributor to the demise of GM, the UAW gave up nothing to help GM's future prospects and now is even part owner. What's wrong with this picture ? I expect the UAW to continue milking GM for all it can get until it files Chp 22. At that point I expect a repeat of the current fiasco as GM first denies a bankruptcy and then simply hand over the keys to the UAW after the government spends billions. The governments investment in GM was one of the nuttiest investments I have ever encountered. It accomplishes nothing but perpetuates a company and union that can't get their act together due to naivity, stupidity and greed.

Jun 02 09:31 AM

[traderstraffic:]

Do you people really think Gen.Mtrs. is bankrupt. How many factories do they have over seas, in other countries. The Government should have done a complete audit of Gen. Mtrs., and found out where they are hiding all the money. The main goals of Gen. Mtrs., for years was to stop building cars in Unites States and do away with the unions. With the help of our Government this is happening now. 14 plant closures. By the way, everyone that thinks the UAW has caused all of this is mistaken. The union was paid with Pocket Change. The money Gen. Mtrs. is really worth would make Wall Street look like the homeless.

Jun 02 09:59 AM

[Steve Russell:]

I do not understand the whining about CAFE standards.

Japan, Europe, and EVEN CHINA require more mpg (or klicks per liter) than the US will require after Obama's standards kick in.

Safety requirements? They apply to foreign cars sold in the US. As that great capitalist Lombardi used to say, it rains on both sides of the football field.

Lemme tell you a story from the other side, since capitalists seem to prefer anecdotes to statistics.

In 1992, I tried to order a Ford Explorer with California emission controls.

The dealer would not take the order in Texas.

After many hissy fits on my part and threats to just not buy, Ford finally gave me a reason. They did not wish to sell California equipped vehicles outside of California because that would create the "false" impression that people were willing to pay more for cleaner cars. This they told the guy who was offering to pay more for a cleaner car....Sheesh.

Jun 02 12:50 PM