IXLR8

Auto Industry: In for a Penny, In for a Pound

Well, John Slater. more great insight about the auto industry from a guy who likely cannot change the oil in his car.

How, John Slater, would you handle the UAW, given the Democrats that the UAW has bought and are likely to stay bought?

How would you handle the fact that state and federal law prohibit the manufacturers from closing ANY dealership, even the rotten ones that you know and hate?

How would you handle the fact that the federal government requires US automakers to build small cars in the zero-profit US while allowing your beloved Japanese to import the Yaris, Fit and Versa from low cost sources?

How would you handle the approximately 1 million people that the BIG 3 are covering for health care? Cut them off?

How would you handle the nearly 600,000 pensions being paid by the Big 3? Dump them on the Pension Benefit Guarantee Corp. which is already $50 Billion underfunded?

How would you handle the most recent federal fuel and environmental mandates which will cost the Big 3 approximately $100 billion to meet within the next six years? PS The government arranged $25 Billion in loans, maybe sometime in 2010. (See the math here?)

Sorry, John Slater. 200 M&A activities with a combined value of $3 billion doesn't even get you a seat at the table for a Big 3 solution.


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