IXLR8

Do the Automakers Deserve a Bail Out?

Whenever the government mandates the auto industry to achieve environmental, safety or fuel objectives for the "common good", the "common" folks as well as the special interests like Greenpeace and the Sierra Club should pay for them through their taxes.

The most recent unfunded mandate from the Feds is estimated to cost the Big 3 about $100 Billion in just the next six years. To "help", the Feds agreed to 'loan' the Big 3 $25 Billion. (see the math here?)

So the government, representing the "common" folks should bailout GM and their compatriots--AND, AT THE SAME TIME--change some of the truly calamatous government regulations that have caused this mess. And remember, Nancy Pelosi has said that any aid to the automakers should come with strings, like no "golden parachutes".

Changes in the laws affecting the automaker should include:

1. Let the Big 3 shut down excess dealers and brands with no financial buyout (no golden parachutes).

Let the Big 3 get rid of the JOBS BANK and hourly employee buyouts (no golden parachutes).

Let the Big 3 get rid of the UAW.

Allow the Big 3 import small cars from low cost sources the same as the Japanese and Koreans do. NONE of these are is made in the US: Toyota (Yaris), Nissan (Versa), Kia (Rio), Hyundai (Excel) and Honda (Fit).

Also, anyone calling for the resignation of the Big 3 senior management without simultaneously calling for the resignation of the Union's Ron Gettlefinger and his leadership(?) team is deluded.


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Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

If this guy has a PhD, then I am Einstein.

The $73 is NOT the employee's income, it is the cost to the Company for each hourly employee. This cost includes wages, employment taxes, benefits, AND legacy costs--health care and pensions for up to 1 million people.

Now, if all the posters here wish to kill the pensions for the retirees, fine. The PBGP is already underfunded by about $50 billion, so another taxpayer funded bail out for the PBGP will be required.

Medicare is in crisis due to chronic underfunding. If these 1 million people migrate to Medicare, another taxpayer funded bail out will be required.

It's OK, though. Niot to worry. The Messiah will fix it by taxing the rich.

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Impact of GM Destroying the EV1

Mr. Fitz, how many EV-1s did you lease? Why is it news that GM and Ford are presently adjusting their model mix to customer demand?

Toyota is reducing the production of its Tundra, which has proven to be a collosal waste of money for them. One year late in getting to market because they couldn't build the plant properly. They had to fire the Japanese plant manager. Then, the Tundra comes out and is hit with three recalls in the first year of production, including blown engines. To make their modest sales goal, they had to offer $6,000 rebates to get people to buy it.

Toyota this year launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales. Sales of their Siena minivan are down 50%.

I'm looking forward to reading your insightful analysis on Toyota's product failures.

Impact of GM Destroying the EV1

I would like to add that speculation is being reported in the automotive press that GM will eventually cease production in the US and become an importer of their vehicles produced in China, South America and elsewhere.

So, maybe, they are taking your advice and are starting to think ahead--no more UAW, no more pensions, no more lifetime healthcare, etc. They are probably counting on guys like you to fund these things through your increased taxes.

Impact of GM Destroying the EV1

Well, Mr. Fitz, I think that you are on to something with your article. What a swell economy we would have in the US if GM had kept those 800 cars on the road and killed off everything else.

With only 800 electric cars on the road (and going only 45 miles or so), the roads would never be crowded and would last forever, pollution would go to zero, CARB could furlough all their employees for a huge tax saving, etc., etc., etc.

It is really too bad that GM didn't think of that way back when.

And, since GM would have offered only 800 of these cars, why, Toyota--with their mega-brain management, Honda and Nissan--mighty Japanese companies with really smart management--would have quickly joined suit and each produced their version of 800 electric cars. What a wonderful world we could have had!

You do fail to mention that even the Toyota Prius (I know, I know--it's only a hybrid) wasn't selling in volume until the US government took your tax money and gave a rebate to someone who bought one. How exaclty does that improve our balance of payments?