Auto Bailout OT | Arthritis Information

 

Story from MSNBC.COM


NBC News and news services
updated 1 hour, 31 minutes ago
WASHINGTON - Weary Democratic congressional leaders and White House officials agreed in principle Tuesday on a billion bailout of U.S. automakers that would give the government extraordinary power to restructure the failing industry. But the rescue faced snags as Republicans raised deep concerns.

Congressional aides and a senior administration official said the proposed deal would speed the loans to Detroit's struggling car companies and place a "car czar" named by President George W. Bush in charge of overhauling the auto industry. Congress could vote on the plan as early as Wednesday and the money could be disbursed within days.

A breakthrough came when negotiators reached a compromise to require the czar to revoke the loans and deny any further federal aid to automakers that don't strike a deal with labor unions, creditors and others to ensure their survival by next spring — essentially pushing them into bankruptcy.


Go to MSNBC for rest of story.I'm glad they did. They should have given the 25 they asked for. Have to say itr's pretty funny watching Mr Ethics Chris Dodd talking down to the Big 3 howeverwhat deal w/ labor unions?????    SOrry.. but I feel the UAW is the elephant in the room.

Bridge loans to the big 3. Ford however does not want any money now but would like the right to get the loan if they should desire. This crisis goes far behond the UAW. We are an open trade market. Anybody can come her make a plant and do business. Not so in China. Also due to Tariffs and taxes it's imposible to sell US cars in Japan EX...

it is my understanding that the workers in these factories of the big 3  get compensated quite well for a layoff of closing........I mean like 70-80% of their wages plus benefits. Jode,

I'm confused.  If an auto company closes, where does the money come from that continues to pay the factory workers salaries?  I've never heard of this before.

Did I misunderstand your post?
The problems with the Big Three is that the American Public wanted big gas hog SUV's because they don't want to be uncool and soccer moms driving around in less gas guzzling station wagons are definitely uncool.  Then, gas spiked because of speculation and tada!  lets blame the car co's.  you are quite jaded as to your view, Pip... babs102008-12-16 10:30:36autoworkers did not take it on the shorts... they were willing to concede to reduction in wages in 2011!!!!    Babs - read it?  I live it..  My business involves ALL the above... [QUOTE=babs10]what deal w/ labor unions?????    SOrry.. but I feel the UAW is the elephant in the room.[/QUOTE]

Perhaps, just perhaps, the oil cartel should be the foundation of the "auto bailout": a magnificent infusion of OIL money and the US auto industry could be/might be/ should be inflation proof.Why stop at placing the blame on union wage workers? (I mean, who do they think they are, wanting a living wage?) Wouldn't it make more sense to blame those on minimum wage, or even the unemployed? It certainly can't be the fault of the people in charge. (Who, by the way, were not asked to make any concessions on their own pay). Where did I put words in your mouth? I wasn't even addressing my post specifically at you.

There is another difference, you know, in that the big 3 make gas guzzling SUVs while foreign car makers are making hybrids, small cars, and otherwise more eco-friendly products. Also, you just said yourself they have more longevity.

It's the engineers designing the cars, not the factory workers, and the execs are yaying and naying the designs, not the factory workers. Why are the workers being held to task and the engineers and executives aren't?

I am also under the impression that the foreign car makers are paying roughly the same wages and benefits as the American ones, to be competitive for workers. At least, I know that is true in Canada.

PS---I'm not acting like "you're the enemy". I wasn't even thinking about you when I posted. I actually don't really care what you think that much. I had just been reading a bunch of comments on a news article about the same. Why do you make everything so personal? Gimpy-a-gogo2008-12-16 13:36:39Although, reading back on this thread, I can see how the post could seem directed at you to you. So sorry for that.
BUT---you still do have a tendency to make things personal. an hour is some living wage. I didn't know I was living below the poverty line. Where's MY bailout??I think /hour is a myth. The average is more like /hour. I know in Canada a full time auto worker makes tops ,000 a year. babs102008-12-16 20:18:42I found this assessment of automaking labour costs, although I can't assess it's accuracy. It was in the Washington Post:
Major changes in its labor costs. : Let's get the facts about auto labor costs. Labor only accounts for 10% of the price of a car. If you cut GM labor costs (wages, benefits and retirees) by 50% that would only lower the price of a car by 5% which is less than most of the discount plans.

Here are the numbers:

Base wages for Toyota and GM are the same - per hour or ,000 a year. If you add in overtime, bonuses and profit sharing, the Toyota worker takes home more. (I can't give exact numbers since Toyota won't.)

There is a difference of about a hour ( v. ) in total labor costs which is almost entirely due to the 432,000 retirees GM supports. The retirees get a lot less than current workers, but if you lower their support by a hour and lower the base wages of current GM workers by the remaining a hour, Toyota workers will be getting over twice what a GM workers gets, both the GM current workers and retirees will be destitute, and you will have lowered the price of a GM car by less than 3%.
yes.. the infomation in the WP is correct as I understand it Gimpy.. I get it, but we could also argue that all companies would do better if they denied the retirees the pension that they worked all their lives for. Just look at Enron, a lot of execs profited and the workers lost their pensions. Why is it the retirees who must pay for the foibles of the execs?

Especially since according to this math it is but a drop in the bucket as far as competitive pricing. What the Big 3 need to do is offer better products.[QUOTE=babs10]yes.. the infomation in the WP is correct as I understand it Gimpy.. [/QUOTE] I don't.  My dad put in 40+ years on the line, midnight shift, so we could have options he never had.  Like college etc.  My mother is now about to lose his pension.  For almost half a century of work?
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