The UAW to own 55% of Chrysler

From Mitt Romney a couple days ago.
http://www.facebook.com/ext/share.php?sid=77782756879&h=Mhf8l&u=aHF...

:

"GM's new proposal, clearly produced under government duress, is worse than virtually any of the alternatives. It would give GM to the UAW and the U.S. government and make taxpayers pick up the bills. Of course, billions more from government would be drawn down right away. But the UAW could also depend on the Obama administration to keep up the subsidy for years and years to come. Government and Union co-ownership: It would be as ineffective as it is un-American.

The right course for GM is an out-of-court restructuring or bankruptcy. Either would keep the company in business and rid it of burdensome costs, work rules and obligations. The government could backstop the post-restructuring debt, helping the company get on its feet. GM must not fail: If its costs are brought in line with its competition, it can ultimately thrive and grow jobs. What is proposed is even worse than bankruptcy—it would make GM the living dead. "



Sigh...if actually had someone in the White House who knew what business was all about.

Yeah...I don't understand the logic behind this at all.

That's actually assuming logic is actually used in these decisions

You know, there are many young adults who would love to have a job like that for $14, regardless of the economy. How this union was able to turn the job into $28/hr w/ benefits is beyond me. Stupid unions.

$28/hr plus benefits is just starting pay.

We now have 2 companies that are owned mostly by the Federal Government and a Union.

Yea, that's a recipe for success.  Does anyone expect lower prices and better quality?  Or do you expect them to use the power they have to destroy the competition.  Look out Ford, you're next since you cheated by not taking TARP funds.

Oh, I left off...

Buy Ford.  Ford is the big winner over the past 3 months.  Now if they don't screw it up they can be 1 of the big three.  With Toyota and Volkswagon being the other two.

Plus, GM is shooting themselves in the other foot by killing off a few of their actually appealing models.

Chrysler hasn't really had anything worth owning in a while (even since the acquisition of Jeep/AM General).

Edited by bcart1991 2009-04-30 2:06 PM

If you think its bad now wait until the Al Gore crowd gets to tell GM what cars to produce. I wish I had my link to the Pelosi mobile because it would fit here perfectly

What really irks me is that, with all the hype over increased MPG, a late '80s Civic woudl get 50+ mpg, yet many current small cars struggle to top 30 mpg. I know why, but doesn't really change the issue.

Heck, my 15-year-old, 225k-on-the-clock, driven-like-a-scalded-cat 3 series tops 25 mpg sometimes...


Edited by bcart1991 2009-04-30 2:22 PM

Pelosi car link

http://www.youtube.com/watch?v=rAqPMJFaEdY

Hmmm I'm thinking Animal Farm A la Detroit

I just feel bad for the senior debt holders whom our President is throwing under the bus. These people bought senior debt so they would have protection if the company has problems. The whole purpose of senior debt is that if the company goes down you get paid 100% before the other debt holders or anyone else down the capital structure. Instead our President is complaining about these people wanting to get their "fair share" based on what they bought, they are only getting 30% of the value of their bonds, and the company is then being given away to the union.

I just don't get what is going on anymore. Let companies take care of themselves and keep the government out of things.

It's the New Way. Everyone gets their "fair share", laws and contracts be damned.

It's all in the plan... make the seniors dependent on the government for help.

I have been waiting for the past 10 years from someone to unionize the unions.  This might just do it.

I'm not arguing the truth of your statement, but please keep in mind that your car today weighs more (safety standards) and burns cleaner.

Comparing the 2 is not really fair to either.

Uh-huh. This doesn't make sense to me either. I hope that it looks soooooo bad to people that they decide bankruptcy is the best course of action. Because it is.

The UAW will get 55% ownership as terms of the bankruptcy.  There is no "other solution" on the table right now.  Furthermore the government (i.e. you and me) will be giving them billions more to help them restructure AFTER the bankruptcy...screwing the thousands of vendors and creditors that Chrysler has, giving people pennies on the dollar who hold Chrysler and GM bonds and all the while ... giving the unions the keys to the liquor cabinet.

How ANYONE can think this is a good idea is beyond me.  This solidifies my feels that BO either'

a) has NO earthly idea what he is doing or
b) he knows EXACTLY what he is doing (empowering the unions and performing his version of redistribution of wealth)

either doesn't sit very well with me.

Edited by TriRSquared 2009-05-01 8:31 AM