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My Big 3 solution, save the Big 3; let Michigan die.

By: skicougar (Diary)  |  November 19th, 2008 at 03:07 PM  | 

RESIZE: AAA

I’m sure many here would prefer to see the US auto industry succeed, for pride, patriotism, security and jobs.

Many have also seen that many foreign car makers are building cars in the US, so it can be done.

I am also sure many Americans prefer American cars over foreign for many reasons and that will continue.

As many may or may not know, US autoworkers average over $73 per hour, while Toyota averages $49 per hour.

So, it is my opinion; that merely lowering US auto worker salaries; makes the Big 3 competitive and reduces the sticker price.

To do this, all the Big 3 need to do is to take the money we give them and start building plants in right to work states. Do this, and either the unions will concede and the Big 3 will recover or right to work states will boom, the Big 3 will recover and Michigan will learn a very tough lesson.

But, to try and hurt the entire auto industry by standing by wages that are not consistent with other companies in the industry is not a way to stay in business and GM and Ford stock prices are reflecting that.

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COMMENTS

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  • izoneguy

    I have NO sympathy for those that cling to something that simply isn’t anymore out of nostalgia and then expect the rest of us to bail them out.

    AMEN

    And isn’t this THE problem??

    Obama supporters voted for CHANGE,
    when they really want the same old crap???

  • skicougar

    His op-ed today has much of the same ideas:

    http://www.nytimes.com/2008/11/19/opinion/19romney.html?_r=2&hp&oref=slogin

    -that the UAW must concede something and the UAW and management have to do what is best for the company.

    -he says to let bankruptcy take care off this and i say to use the bailout to get out from UAWs strong hold, but its the same idea.

    -pretty scary. i’ve been just slightly ahead of mitt and rush on the same ideas in the past month. i sure hope obama can cure that. i am obviously thinking about how to solve problems myself too much. nothing good can come from that.

    • DavidS1787

      n/T

      • DavidS1787

        corrected post

  • DavidS1787

    The big three need to go from the top down by trimming their budgets.

    1. Ceo’s pay should not be no more than what any normal working business executive should be making. No more than a six figure salary no more than $500,000.

      1. Get rid of bonuses for all of the big three CEO’s and put that money back into their businesses.

    3.Get Rid of the golden parachutes for the big three’s Ceo’s.

    4.Renegotiate the pay scale with the UAW.
    a. No more 95% of your pay if you get laid off.
    b. renegotiate the the pay scale to what the other car companies are paying their workers.

    5.Have the Big Three Ceo’s tender their resignations. They failed to produce a good working business model. Otherwise why would they be up on Capitol Hill?

  • DavidS1787

    If they cant get their own houses in order at the big three car companies they wont now and will be back for money real soon and it might be for more than 25 Billion Dollars.

    • mobius2702

      Have the Big Three Ceo’s tender their resignations. They failed to produce a good working business model. Otherwise why would they be up on Capitol Hill?

      They’re on Capitol Hill because they’re good little socialists. The Big 3 weren’t trying to produce a working model; they were trying to produce a socialist model. It’s been their experiment since the end of WWII, when the US had the only manufacturing capability in the world.

      In my humble opinion, this is what we need to be screaming from the rooftops; GM isn’t a failed business, it’s a failed socialist experiment. Let it die and turn into a real business, one that is for maximizing profits.

    • mbecker908

      From the Wall St. Journal

      WASHINGTON — General Motors Corp. is resisting suggestions from advisers that it make preparations for a bankruptcy filing, despite telling Congress this week it could soon run out of cash, according to people familiar with the matter.

      Auto executives Ron Gettelfinger, Richard Wagoner, Robert Nardelli and Alan Mulally listen to testimony on Capitol Hill Wednesday.

      The company’s view is that consumers won’t buy cars from a bankrupt auto maker. GM is concerned that if it were even to take steps in that direction, such as hiring bankruptcy counsel, the move would leak and unnerve potential GM customers.

      Wake up and smell the roses guys. A big part of your problem – aside from the fact that you have never negotiated with the UAW, you’ve just given them what they demanded – is that people aren’t buying your damn cars now. As in before you filing BK.

      I would also note, that there is no plan to recover, either from a BK or from a cash infusion from Congress. The auto “execs” are nothing more than three year olds headed for the cookie jar. The problem is that, in this case, “mom” is also a three year old.

      • JSobieski

        Drop in the bucket stuff.

        Kind of like focusing on earmark reform when Congress passes a $700B bailout package.

        Kind of like eating 5 greezy double cheese burgers but insisting on washing it down with a diet coke.

        • mbecker908

          who don’t understand much of anything. OTOH, I do have a problem rewarding these guys.

          CEO pay is a matter for the shareholders to take up. Were I a shareholder activist, I would insist on pay being tied to the performance of the company.

          Side note… In the early ’80′s a very good friend was an assembly line guy for Chrysler. Lee Iaccoca got his picture on Fortune as the highest paid executive and I asked my friend what he thought about that. Now keep in mind this guy was UAW, hard core union guy. He said, “They can’t pay Mr. Iaccoca too much. He’s earned every nickel. I love him.”

  • izoneguy

    New Honda Plant Creates Jobs In Indiana

    The sprawling $550 million facility on 1,700 acres along Interstate 74 already employs 900 Indiana residents and officials say more than 200 new positions could be filled within a year.

    All new hires for the Honda plans had to be Indiana residents and live within an hour’s drive of the facility.

    So if you are UAW and live in Michigan, time to move.

  • Pingback: Sen. Shelby of Alabama=human feces

  • c17wife

    this. I’m sure there are several states that would love new auto manufacturing facilities.

    I’d say let the rest of the Rust belt die as well. These people just returned democrats to power yet again. Even though they got nothing for giving them power in the first place. It is incredibly insane.

    I’m out of patience with MI, PA, OH, etc… If they want change and an improved quality of life, they must stop sending those that would keep them downtrodden to places of power and influence.

    It isn’t George Bush or the GOP that has failed them. They have failed themselves. And I am tired of the whining.

    For 18 years now, my family has gone where the AF has sent us. Upon retirement, we will go where the best job offer is. Even if it isn’t our “favorite” place. To do anything else would be ridiculous.

    I have NO sympathy for those that cling to something that simply isn’t anymore out of nostalgia and then expect the rest of us to bail them out.

  • c17wife

    this. I’m sure there are several states that would love new auto manufacturing facilities.

    I’d say let the rest of the Rust belt die as well. These people just returned democrats to power yet again. Even though they got nothing for giving them power in the first place. It is incredibly insane.

    I’m out of patience with MI, PA, OH, etc… If they want change and an improved quality of life, they must stop sending those that would keep them downtrodden to places of power and influence.

    It isn’t George Bush or the GOP that has failed them. They have failed themselves. And I am tired of the whining.

    For 18 years now, my family has gone where the AF has sent us. Upon retirement, we will go where the best job offer is. Even if it isn’t our “favorite” place. To do anything else would be ridiculous.

    I have NO sympathy for those that cling to something that simply isn’t anymore out of nostalgia and then expect the rest of us to bail them out.

  • JLenardDetroit

    … by having kept its Democrat Governor …

    Democrats have all of a sudden discovered a National Security concern!?!? They say we must keep the Big 3 alive, or who will build our Tanks should the need arise? EXCUSE ME?!?!?

    If Democrats weren’t always weakening our Country and our Military… anyway, that rant/discussion is here at RS Diary: Can we afford the Dem/Obama $urrender doctrine/policy?

    If the Democrats want to “funnel” money to the Big 3, how about they PAY THEM TO ACTUALLY BUILD US SOME TANKS THEN?!?!? Maybe we’d actually have an appropriate supply for when we will need them (after Dem’s screw up the World more, and a real “Open War” opens up). That certainly won’t happen, we can’t actually have Military spending under Democrats, they just want to demagogue the issue (as they do any/all).

    How about they just send us all a Check for $5,000 payable only to Auto Dealerships so we can go out and buy cars? You know, actually make the Big 3 EARN the money by having to produce and sell us a product!?!?! I know, I KNOW, not the Democrats point… It’s all about ENVIRONMENTAL CONTROLS they want to force upon the Big 3.

    Maybe we should hand the issue over to Dodd and Frank. We can have an Auto version of the CRA!! You know, so that “poor folk” can afford better cars, they can’t pay for. They need some new bubble down the road to somehow blame Republicans for “attempting to deregulate” not the failings of their policies/actions.