ddavid

Bail Out Capitalism, Not Detroit

It must be easy to babble on; How much intelligence does it take to take the word of the media or blog site speaking wages of the big-3 autoworker

First of all the wages start about $14.00 and go to $27.00 /hr.
Honda's starting wage is $18.41 an hour.

The difference are Health and Retirement costs in the amount roughly $44.00
That cost covers two (2) workers - the present worker and the pensions and healthcare costs for the thousands of retirees on their books.

Hence the wages are much at par between GM & Honda & Toyota. It is the Pensions and Health care that the Japanese automaker does not have, because the Japanese government pays for those costs.

In that respect the Japanese are subsidizing their Autoworker.
Perhaps if we ever have a National Health Care System, the Automakers can have room to breath for true competition.

The solution is difficult. Again it is easy for the ignorant to repeat the media or blogger that GM et. should go into Chapter 11 without taking into consideration the huge costs and time. Lehman little unit in England will take 1 year at $10 million dollars a day. Delphi has been in Chapter 11 four years, and its not even close the size of GM, let alone all 3 automakers. Section 346 of Debtor financing will require billions of dollars. - a reason 2000 companies this year have chosen Chap 7 because its is impossible to get Debtor financing in this credit environment. GM et. option to go into Chap 11 would require government subsidy.

To show the difficulty GM et. failure would have on the supply line,
Honda spokesman Jeffrey Smith said Honda supports government aid to the big 3 because it would maintain the stability and viability of the auto industry as a whole.

The quickest fix, at this moment without giving deeper thought, would be to place an excise tax on foreign auto's - in the same amount as Health & Retirement costs are of the American Automaker.

A point to remember, irregardless which foreign company operates in the USA,
the profits are either returned to its country of origin or invested in US Treasuries. None aids the Trade deficit which increases the National Debt. So you & I loose any which way you care to slice it. Who else is there to pay the debt ?

Bail Out Capitalism, Not Detroit

It must be easy to babble on; How much intelligence does it take to take the word of the media or blog site speaking wages of the big-3 autoworker

First of all the wages start about $14.00 and go to $27.00 /hr.
Honda's starting wage is $18.41 an hour.

The difference are Health and Retirement costs in the amount roughly $44.00
That cost covers two (2) workers - the present worker and the pensions and healthcare costs for the thousands of retirees on their books.

Hence the wages are much at par between GM & Honda & Toyota. It is the Pensions and Health care that the Japanese automaker does not have, because the Japanese government pays for those costs.

In that respect the Japanese are subsidizing their Autoworker.
Perhaps if we ever have a National Health Care System, the Automakers can have room to breath for true competition.

The solution is difficult. Again it is easy for the ignorant to repeat the media or blogger that GM et. should go into Chapter 11 without taking into consideration the huge costs and time. Lehman little unit in England will take 1 year at $10 million dollars a day. Delphi has been in Chapter 11 four years, and its not even close the size of GM, let alone all 3 automakers. Section 346 of Debtor financing will require billions of dollars. - a reason 2000 companies this year have chosen Chap 7 because its is impossible to get Debtor financing in this credit environment. GM et. option to go into Chap 11 would require government subsidy.

To show the difficulty GM et. failure would have on the supply line,
Honda spokesman Jeffrey Smith said Honda supports government aid to the big 3 because it would maintain the stability and viability of the auto industry as a whole.

The quickest fix, at this moment without giving deeper thought, would be to place an excise tax on foreign auto's - in the same amount as Health & Retirement costs are of the American Automaker.

A point to remember, irregardless which foreign company operates in the USA,
the profits are either returned to its country of origin or invested in US Treasuries. None aids the Trade deficit which increases the National Debt. So you & I loose any which way you care to slice it. Who else is there to pay the debt ?

Credit Freeze Spreads to Consumers: GMAC Will Only Lend Money to Prime Borrowers

Thank you for your article. Since you spoke of the Gloom & Doom of the economy when banks tighten lending standards, it would have been plausible had you added the your opinion of GMAC's survival in their new lending environment.
That would have rounded out your article.