big three bailout

Any non-electronic/automotive related discussion goes here. Current events, sports, music, etc.
User avatar
Bfowler
Briaans..... BRIAAAAANNNNNNS
Posts: 10769
Joined: Wed Dec 06, 2006 11:06 am
Location: So easy, a cavewomen could do him

Post by Bfowler »

Jim Truett wrote:
Sounds good until you realize that the government would in one way or another have to still support the millions of people that the failure of the "Big 3" would leave unemployed. It's not just the auto workers, think of the entire supply chain that would collapse or suffer a considerable decline in business.
they would be unemployed for a little while i really do believe markets seek their own equilibrium. and that the demand for cars isnt going down. other car makers will pick up the slack to meet demand.

alternatively. im sure another firm would buy the ford and gm names after the bankruptcy., and take over the company and change their processes and direction, possibly making them profitable. look a Nissan. they were on the verge of collapse, and got bought out by Renault. now they doing a great job of competing.
my ex-girlfriend said "its car audio or me"
i've had tougher choices at a soda machine...
SolacE
Posts: 904
Joined: Wed Feb 07, 2007 10:55 pm

Post by SolacE »

FuzzyHoNutz wrote:The legalization of marryjane is what will save us all........... OR keep us from taking to the streets except to get munchies and blunt wraps.....
My man!
[img]http://i127.photobucket.com/albums/p139/solaceravr/Misc/CopCar.jpg[/img]
User avatar
OldSchoolFool
Posts: 271
Joined: Tue Jul 10, 2007 10:01 am
Location: Dicephalous

Post by OldSchoolFool »

I caught a bit of cable news the other day. They had some union leader up blabbering about what this means to the workers. You should have seen his face when the anchor asked "So what happens to your workers if the company goes away?" Sacrifice was apparently off the table for the union dude.

This is one rare time where you can sort out a complicated mess on this scale quite simply. There are two factors at play that outweigh all the others so completely that anyone can see it without argument, I hope.

A) Unions. It's very easy to see that American cars cost thousands too much because of what unions have demanded over the years. Is anyone thinking or saying otherwise?

B) Crap product. Here's a list of good American cars: Ford Trucks, Ford Mustang. End of list. (good being- cost/value ratio makes sense) Opinions might waver on this, but the fact remains that even as this is coming down I am seeing ads for the latest GM: an SUV for fusks sake!!?!?!!?!

I have driven a few rentals lately, the Nissan Sentra 1.8l was 10x the Chevy Malibu in every way. Same exact class of vehicle IMO.

So if they made smaller, better, cheaper, kick ass cars... well, aint gonna happen soon so why bother? As I started saying, this time the emperor has no clothes and is trying hard to pretend nobody is pointing and laughing. The more they protest and demand cash, watch their sales tank even further. Personally, I would never support such open graft by purchasing one of their so-called cars.
User avatar
dwnrodeo
Posts: 1932
Joined: Thu Nov 01, 2007 10:35 am
Location: MI

Post by dwnrodeo »

A) Unions. It's very easy to see that American cars cost thousands too much because of what unions have demanded over the years. Is anyone thinking or saying otherwise?
Exactly. That and pensions are killing the big three.
XS2300, XS2500, XS2300, X200.4, X100.2, Ti21000.4, Roadster 66

I'm gonna become a civil engineer. I'm gonna design septic tanks for playgrounds. Little kids can take shits! You idiot, what the hell do you do?
5.9Limited
Posts: 415
Joined: Tue Nov 25, 2008 7:57 pm
Location: Vermont
Contact:

Post by 5.9Limited »

can't believe they blew it...at least for now....they had the bailout they begged for...and pissed it away because they refused to lower wages and pensions etc!?!?!?!? this one of the reasons they're in the crapper to begin with...!!! crazy man...

personally I think the millions of employees would gladly take a pay cut if it meant keep their jobs.... PAY CUT vs. NO PAY ... hmmm... tough one.

Did these guys even go to biz school? They're ridiculous...I don't think they should be bailed out really , but if the government is saying "We'll shovel your poo if you do these three things..." YOU DO THOSE THREE THINGS>. Crazy ,man.
VW337
Meatgician
Posts: 2780
Joined: Wed Dec 06, 2006 9:53 am
Location: PORK-Land OR

Post by VW337 »

Nobody has even brought up what will happen to the poor clerks at enterprise, herts, and avis.........

when the big 3 fail the rental car market will go into a near stand still... :lol:


Bastards I say sink them and lynch any government agency, or person that votes otherwise.

If a bail out is in order it should be for the employees who work for them, job relocation etc. Shit give the money to Toyota and Honda to get them to expand their facilities to cover the additional workforce.
I think we've established that "Ka Ka" and "Tukki Tukki" don't work.
User avatar
bretti_kivi
Shutterbug
Posts: 1595
Joined: Tue Aug 26, 2008 1:06 pm
Location: Päijät-Häme or Uusimaa

Post by bretti_kivi »

well, it got refused.

GM is apparently seeking Chap 11, Chrysler too.

Watch the Europeans nationalise Opel, Saab, Ford UK / DE and Volvo. After all, they still make money...

Bret
User avatar
Bfowler
Briaans..... BRIAAAAANNNNNNS
Posts: 10769
Joined: Wed Dec 06, 2006 11:06 am
Location: So easy, a cavewomen could do him

Post by Bfowler »

bretti_kivi wrote:well, it got refused.

GM is apparently seeking Chap 11, Chrysler too.

Watch the Europeans nationalise Opel, Saab, Ford UK / DE and Volvo. After all, they still make money...

Bret

SWEEET. i can only hope a smart company buys them up
my ex-girlfriend said "its car audio or me"
i've had tougher choices at a soda machine...
User avatar
dwnrodeo
Posts: 1932
Joined: Thu Nov 01, 2007 10:35 am
Location: MI

Post by dwnrodeo »

Yeah it got refused, but did you hear Obama's comments on how letting the big three fail is "unacceptable". I fear that even though it failed it still will be pushed through in the near future. However, seeing the Senate reject the bailout proves that Washington isn't entirely incompetent.
XS2300, XS2500, XS2300, X200.4, X100.2, Ti21000.4, Roadster 66

I'm gonna become a civil engineer. I'm gonna design septic tanks for playgrounds. Little kids can take shits! You idiot, what the hell do you do?
User avatar
joerg
SOFA-KING
Posts: 5351
Joined: Sat Nov 29, 2008 11:54 am
Location: Graz, Austria

Post by joerg »

It seems like that´s it with american cars! It´s just a matter of weeks now until the ship sinks. At least i can tell that i drive a piece of american car history now. Hope somebody is going to buy em up so that all the employees are able to keep their work. And most important they shall not forget to kick the management outta their private jets.
User avatar
joyride
Posts: 709
Joined: Wed Dec 13, 2006 7:16 am
Location: Grand Rapids, MI
Contact:

Post by joyride »

Man, those union workers are relentless. Knowing a lot of union guys, you wouldnt believe the deal that they have talked them selves into over the pasy 20 years. hell, they make as much as the white collar guys. They woudlnt take a pay cut to a level that is closer to what others (honda, toyota) pay thier workers. Guess they didnt realize that unemployment wont pay that much either...
User avatar
mr tibbs
Forum Goatee
Posts: 3895
Joined: Sun Dec 17, 2006 3:03 pm
Location: The land of morons, I mean mormons.:(

Post by mr tibbs »

joyride wrote:Man, those union workers are relentless. Knowing a lot of union guys, you wouldnt believe the deal that they have talked them selves into over the pasy 20 years. hell, they make as much as the white collar guys. They woudlnt take a pay cut to a level that is closer to what others (honda, toyota) pay thier workers. Guess they didnt realize that unemployment wont pay that much either...
Yep, they were willing to negotiate, in 2011!!?? What the hell is wrong with them? I guess they are going to get what they wanted now. How stupid can people be??!!!! :idiot: :idiot: :idiot: :idiot:
[url=http://www.usbr.gov//][img]http://www.usbr.gov/images/banner-3.jpg[/img][/url]
User avatar
stipud
Voltage Ohms
Posts: 14719
Joined: Sat Nov 26, 1983 4:00 am
Location: Burnaby, BC
Contact:

Post by stipud »

joyride wrote:Man, those union workers are relentless. Knowing a lot of union guys, you wouldnt believe the deal that they have talked them selves into over the pasy 20 years. hell, they make as much as the white collar guys. They woudlnt take a pay cut to a level that is closer to what others (honda, toyota) pay thier workers. Guess they didnt realize that unemployment wont pay that much either...
Got this email at work... somewhat of an eye opener...
According to Forbes:

Labor cost per hour, wages and benefits for hourly workers.

Ford: $70.51 ($141,020 per year)

GM: $73.26 ($146,520 per year)

Chrysler: $75.86 ($151,720 per year)

Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)

According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).

Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D., and 52.6% more than the average worker at Toyota, Honda or Nissan.

Many industry analysts say the Detroit Three, must be on par with Toyota and Honda to survive. This year's contract, they say, must be "transformational" in reducing pension and health care costs.

What would "transformational" mean? One way to think about "transformational" would mean that UAW workers, most with a high school diploma, would have to accept compensation equal to that of the average university professor with a PhD.

Then there's the "Job Bank"

When a D3 (Detroit 3 carmaker) lays an employee off, that employee continues to receive all benefits - medical, retirement, etc., etc., PLUS an hourly wage of $31/hour.

Here's a typical story....

Ken Pool is making good money. On weekdays, he shows up at 7 a.m. at Ford Motor Co.'s Michigan Truck Plant in Wayne, signs in, and then starts working -- on a crossword puzzle. Pool hates the monotony, but the pay is good: more than $31 an hour, plus benefits.

"We just go in and play crossword puzzles, watch videos that someone brings in or read the newspaper," he says. "Otherwise, I just sit."

Pool is one of more than 12,000 American autoworkers who, instead of installing windshields or bending sheet metal, spend their days counting the hours in a jobs bank set up by Detroit automakers as demanded by the United Auto Workers Union - UAW - as part of an extraordinary job security agreement.

Now the D3 wants Joe Taxpayer to pick up this tab in a $25 Billion bailout package - soon to be increased to $45 Billion if Nancy Pelosi and Hillary Clinton have their way.

The "Big 3" want this money - not to build better autos. No. They want it to pay the tab for Medical and Retirement benefits for RETIRED auto workers. Not ONE PENNY would be used to make them more competitive, or to improve the quality of their cars.

We ALL have problems paying for our Medical Insurance - but the Democrat leaders in Congress now want us to pay the Medical Insurance premiums of folks who have RETIRED from Ford, GM and Chrysler.

Not a good deal for us.

How about Chapter 11 - and getting rid of these ridiculous union contracts?
The senate refused the bill due to the unwillingness of the UAW to accept pay cuts down to Toyota levels. I guess if they're going to be stubborn, then that's what should happen. They will learn their mistake and come back begging in a few weeks, when it finally sinks in that everyone will lose their work because of it.
User avatar
bretti_kivi
Shutterbug
Posts: 1595
Joined: Tue Aug 26, 2008 1:06 pm
Location: Päijät-Häme or Uusimaa

Post by bretti_kivi »

go listen: the first song, and also at about 21:30

http://downloads.bbc.co.uk/podcasts/rad ... -1830a.mp3

it will be there just all week. It's really rather amusing.


"the laying on of hands for a blown starter motor" - "all cars big and powerful / all vehicles large and cheap / all trucks made for climbin' things / the lord god drives a jeep
he drives to talk to George Bush, he drives to meet J.C / he drives to scare the angels / he drives an SUV".... to the tune of "all things bright and beautiful.

magnificent. Up there with Clarkson and the Fiesta.

Bret
VW337
Meatgician
Posts: 2780
Joined: Wed Dec 06, 2006 9:53 am
Location: PORK-Land OR

Post by VW337 »

I think we've established that "Ka Ka" and "Tukki Tukki" don't work.
VW337
Meatgician
Posts: 2780
Joined: Wed Dec 06, 2006 9:53 am
Location: PORK-Land OR

Post by VW337 »

Fresh from my inbox---

Back in 1999, the government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it.

They failed and it closed. Now, we are trusting the economy of our country and $800+ billion to a pack of nit-wits who couldn't make money running a whore house and selling booze..
I think we've established that "Ka Ka" and "Tukki Tukki" don't work.
rlockwood
Posts: 344
Joined: Sun Jan 21, 2007 10:14 am

Post by rlockwood »

VW337 wrote:Fresh from my inbox---

Back in 1999, the government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it.

They failed and it closed. Now, we are trusting the economy of our country and $800+ billion to a pack of nit-wits who couldn't make money running a whore house and selling booze..
that sums up how I feel about it.. if they failed while publicly owned, how could they possibly succeed with government oversight?
I'm afraid of widths.
User avatar
denim
Posts: 1333
Joined: Wed Feb 13, 2008 7:20 am
Location: SSA Inc. HQ (Maryland)
Contact:

Post by denim »

Honestly, at this point, they should mass fire every UAW worker that will not take a pay cut and hire new employees at the Toyota wage levels.
User avatar
joyride
Posts: 709
Joined: Wed Dec 13, 2006 7:16 am
Location: Grand Rapids, MI
Contact:

Post by joyride »

Honestly, at this point, they should mass fire every UAW worker that will not take a pay cut and hire new employees at the Toyota wage levels.
I said that same thing about a week ago. With such high unemployment, you know the positions would be filled. But I believe that they cannot just fire them for no reason. Hell, from what I have seen/heard about the factories, they cant fire anyone with a good reason!
User avatar
joerg
SOFA-KING
Posts: 5351
Joined: Sat Nov 29, 2008 11:54 am
Location: Graz, Austria

Post by joerg »

They will have a real good reason in the future!
You´re fired because we stop building cars and close down the factory! :roll:
Music is silver, PHOENIX is GOLD
rlockwood
Posts: 344
Joined: Sun Jan 21, 2007 10:14 am

Post by rlockwood »

Image
I'm afraid of widths.
User avatar
Jacampb2
Mad Scientist
Posts: 1563
Joined: Sat Apr 19, 2008 11:57 pm
Location: Beaverton 48612

Post by Jacampb2 »

You know, I have almost replied to this thread several times, but I get angry and decide not to. I finally decided to add my two cents, hopefully I won't start an argument, but here goes.

First off, I agree that GM and the UAW have agreed to some ridiculous things. The job pool for one, where people with no work go for 8 hours a day and do nothing but still make full rate. Also, it seems their benefits are a bit over the top, but saying that the unions are responsible for their current condition is total bull shit. Do the hourly guys get paid to much? You know, the average hourly GM guy makes within a few dollars of what the average toyota guy does here in the US. The difference is in their estimated hourly cost per employee. It is much higher for the big three, but consider this, from what I understand that is hourly cost is based on Current employees, but includes the cost of the pensions and benefits who are all still actively collecting their retirement benefits. The big three have a hell of a lot more people in retirement than the foreign guys, simply because they have been manufacturing on US soil so long. I think that the flaws with their current labor contract are that they get to many vacation days, to many paid holidays, and to much health care compensation. Do I think their hourly rate is fair. Damn skippy I do.

Most of you have never had to work a shift work job. Most of you don't know what it is like to give up your family for weeks at a time due to working 12 hour midnights and sleeping during the day. You see, I am a Union employee, Steelworkers, and granted, the steelworkers are not as hardcore as the UAW, but I still know a fair amount about the process of labor contracts and the battles that go on between companies and union.

I have no college education and I make close to 90k a year. I have decent benefits (although worse every year), but let me tell you something. I doubt very much that most of you would want my job. I spend most of my time running my equipment via computer, however, I have went through years of training to get where I am. My position requires a lot of skill at troubleshooting, chemistry and physics. I am responsible for 3 seperate chemical processes, that when all are running full out generate this company about 500K a day. One of the things I make is so hazardous that I have to get in a suit, and full scuba gear to take samples. I do this every day. Every day I go to work, and know that if I fuck up, not only does my life hang in the balance, but the whole fucking town around me. Is it worth the $30 per/hour I make? Damn right it is. Would you go to work every day knowing that if something goes drastically wrong that you will never see your kids again? There are very few professions out there that are like this, most of the public service, fire fighters, cops, know what it is about. I am not saying working in GM is like this, but there are likely quite a few hazardous jobs there as well.

Anyhow, that is enough of my rant. I just hate seeing people say that Unions are the cause of all of americas problems. I found the "parable" bellow on another board, it provides a totally different slant on things. I will say, that the parable describes the exact same attitude around this company.
A Modern Parable.


A Japanese company (Toyota) and an American company (Ford Motors) decided to have a canoe race on the Missouri River Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to 'equal the competition' and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India .

Sadly, the End.
Later,
Jason
M: M100, M44 for a custom amp project
Zx: Zx500, Zx450, Black Zx350
ZxTi: 4 Zx600Ti's, 1 Zx400Ti
Ti: 5 800.1's & 900.7 for a custom amp project. 1 1200.1, 1 1000.2
Tantrum: 2 1200.1's, 1 600.4, 1 500.2
XS: XS6600
User avatar
stipud
Voltage Ohms
Posts: 14719
Joined: Sat Nov 26, 1983 4:00 am
Location: Burnaby, BC
Contact:

Post by stipud »

Jacampb2 wrote:You know, I have almost replied to this thread several times, but I get angry and decide not to. I finally decided to add my two cents, hopefully I won't start an argument, but here goes.
I like to think that we are pretty civil at arguments here. We've got a pretty good spectrum of political beliefs and opinions. And while we do get into some pretty deep debates, it has generally not come between us as friends.

In this case I believe the car industry bailouts have been sensationalized to such a degree by the media, that it unfortunately means the naysayers seem to be quite a bit more vocal right now. However, you do not stand alone. I at the very least am on the fence about it -- I think your government was far more lenient in bailing out much worse companies like AIG, while the auto industry absolutely got shafted, and deserved the bailouts far more than many of the wallstreet sleazebags who caused this mess to begin with. Perhaps this sensationalism was simply because the auto industry was the first non-economic-sector industry to ask for money? Or perhaps the media and political leaders just had a bone to pick. Who knows. Regardless, I still think they were treated unfairly.

However, I do also think that changes need to happen with their structure as well. Companies like GM especially have become hulking corporate dinosaurs, who couldn't help but bleed like stuck pigs even when the economy was in good shape. So I believe this economic downturn is just what they needed to kick their asses into gear, and change the way they do business, hopefully for the better.

An unfortunate circumstance of this economic collapse is that financial stimulus will be necessary, lest we revert ourselves back to the dark ages. I think the auto industry bailout needed to happen, but I would also be very upset if they were to continue on "business as usual".
Jacampb2 wrote:First off, I agree that GM and the UAW have agreed to some ridiculous things. The job pool for one, where people with no work go for 8 hours a day and do nothing but still make full rate. Also, it seems their benefits are a bit over the top, but saying that the unions are responsible for their current condition is total bull shit. Do the hourly guys get paid to much? You know, the average hourly GM guy makes within a few dollars of what the average toyota guy does here in the US. The difference is in their estimated hourly cost per employee. It is much higher for the big three, but consider this, from what I understand that is hourly cost is based on Current employees, but includes the cost of the pensions and benefits who are all still actively collecting their retirement benefits. The big three have a hell of a lot more people in retirement than the foreign guys, simply because they have been manufacturing on US soil so long. I think that the flaws with their current labor contract are that they get to many vacation days, to many paid holidays, and to much health care compensation. Do I think their hourly rate is fair. Damn skippy I do.
If the way they calculated salaries includes their pension, then I must retract my above post. Upon closer inspection it clearly states "Labor cost per hour, wages and benefits for hourly workers.". So those benefits could easily include pension and health care, in which case they are only estimated values at best, and it does not illustrate the pay scale I was trying to get across (i.e. annual net income).

I would be interested to see the actual hourly pay scales compared between e.g. Toyota and a UAW worker. If the difference is indeed as slim as you state, then I must rethink my position some more, due to the extremely skewed statistics that I have been fed.
Jacampb2 wrote:Most of you have never had to work a shift work job. Most of you don't know what it is like to give up your family for weeks at a time due to working 12 hour midnights and sleeping during the day. You see, I am a Union employee, Steelworkers, and granted, the steelworkers are not as hardcore as the UAW, but I still know a fair amount about the process of labor contracts and the battles that go on between companies and union.

I have no college education and I make close to 90k a year. I have decent benefits (although worse every year), but let me tell you something. I doubt very much that most of you would want my job. I spend most of my time running my equipment via computer, however, I have went through years of training to get where I am. My position requires a lot of skill at troubleshooting, chemistry and physics. I am responsible for 3 seperate chemical processes, that when all are running full out generate this company about 500K a day. One of the things I make is so hazardous that I have to get in a suit, and full scuba gear to take samples. I do this every day. Every day I go to work, and know that if I fuck up, not only does my life hang in the balance, but the whole fucking town around me. Is it worth the $30 per/hour I make? Damn right it is. Would you go to work every day knowing that if something goes drastically wrong that you will never see your kids again? There are very few professions out there that are like this, most of the public service, fire fighters, cops, know what it is about. I am not saying working in GM is like this, but there are likely quite a few hazardous jobs there as well.
I absolutely support the pay scales of typical shift workers. Sitting in my cushy office chair it would be easy to cry foul that I spent years in University to get my position, but in reality, University was dead simple, and so is my job. I'm sure I could teach you my programming job in about a year, tops. I certainly would not leave my position for yours, if I was only paid the same as I am here.
Jacampb2 wrote:Anyhow, that is enough of my rant. I just hate seeing people say that Unions are the cause of all of americas problems. I found the "parable" bellow on another board, it provides a totally different slant on things. I will say, that the parable describes the exact same attitude around this company.

Later,
Jason
Definitely not. Unions are responsible for the labor laws, minimum wages and (more) equal treatment we get today. Without them, we would have been much worse off... that much is immediately clear. However, I do think that since we have now passed many employee supports as law (e.g. making unfair layoffs disputable in court, etc), that unions are losing their purpose. I do still agree that they can be beneficial to a point, but I personally prefer local, responsible unions over monolithic ones that are run as bureaucratic corporations. Those enormous unions can be equally (or in some cases more) corrupt compared to their companies. Since they have a monopoly on the labor, they can ask for ridiculous benefits as well. I think unions should continue existing, but perhaps far more scaled down, thanks to our new labor laws carrying much of their previous burden.

Nice parable by the way... it expresses rather clearly the "corporate dinosaur" side of the auto industry that I think needs to be reworked.
Post Reply