Sidecar Flip
Living Legend
I think the way the auto bailout is structured does absolutely nothing to help the economy. The money is being used to pay current debt and cover bad loans. It is not being spent on anything new. They should have taken the bailout money and put it in a buy American campaign. for example ever American made car purchased in 2009 the owner would receive a gov sponsored discount on the product purchased. this would promote spending increase production and keep people employed. As it stands we gave failing companies operating capital when they have been losing market share for years. The American auto industry need do something to increase their market share or they are doomed with or without bailout money. I have a crazy thought lift the embargo on Cuba they haven’t had any American cars in years plus it would allow us to indulge in a few fine smokes.
I quit smoking 1-01-09. A fine Cuban Cigar would still be nice however. Somehow, I can't picture Cubans buying American cars. They can't afford them. Their economy is in a shambles. Cuba has degenerated to a low ranking 3rd. world economy...much like the owners of this country would like us to become.
Regardless, 1'100HD employees are getting the boot as this being typed-up . Three production facilities are also going to be shut down (source:Bloomberg)
Jamie
TDragger's Bloomberg report is also interesting. Now, will someone please explain to me what possessed Willie G and his henchmen to purchase MV and their outta sight unsecured debt just prior to the fall of the American economy...just, JUST prior, like within a 90 day time frame. The handwriting was on the wall then. HD knew it was in serious trouble as it's debt to profit ratio was faltering but yet went ahead and capitalized MV. I say let 'em go down. Even John Bloor is light years smarter than Willie G. HD is an ancient American Icon caught securely in the jaws of death between a faltering economy and the unyielding power of the EPA.
HD, like Chrysler, has outlived it's profitability and no amount of tax dollar infusion is going to change the final outcome. It's past time to let it go.
HD as well as the not so big 3 have the same problem to deal with that severely hurts the bottom line and that's the union legacy cost scenario.
Now, we all know that HD is never going to build a necessary motor vehicle. They are always going to build a luxury item so let's just discard them from the equation.
The auto manufacturers need to divest themselves from the UAW one way or another. Gettlefinger knows that which is why he's looking to meet with Obama to renegotiate the terms of the bridge loan because as he says, 'the terms aren't reasonable'. On the contrary, the terms are quite reasonable when the end game is a non-union working environment.
If, the automakers can't divest themselves from the UAW and limit their legacy cost commitment, they will never be viable and they will be a continuous drain on the dollars of the American people. It's past time for Gettlefinger and his regime to exit the American workplace. Ron knows that but there is no way he can tell his constituents the truth.
The Unions got us to where we are today in terms of safe working environment and benefit packages. Without unions and collective bargaining, we'd all be working for 3 dollars a day, no benefits and no retirement but the unions have outlived their benefits to the American workers. It's time to go.
It's all gonna be real ugly. Reality, especially the reality of lower wages and curtailment of benefit packages, vacation time and ancillary perks that are taken for granted, but severely effect a manufacturers bottom line will be very hard for a typical blue collar employee to swallow but personally, I'd rather swallow that bitter pill over losing my job entirely and the prospect of never being employed gainfully again...which is exactly what the scenario will play out as, if we continue on the present tack.
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