November 19, 2008
Auto Bailout, or Political Payback? (Armstrong Williams)
Armstrong Williams fears that the auto industry will not be completely fixed with a rescue package, and that President-elect Barack Obama is supporting a package as a political payback.
Archived under: Economy & Budget, Presidential Campaign
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Union workers have taken concessions in Retirement and Salary to make workers closer to those of Japanese auto companies in the U.S. while CEO and upper management who make all the Business decisions have reaped the rewards in compensations.
I keep hearing how Toyota and other companies in the U.S. aren't making these same benefits; Well their CEOs don't make $14 million a year either.
My fear is that any bailout money will end up building another auto plant in Mexico.
Comment by Donaldd — November 20, 2008 @ 1:04 pm
Yes, you hit the nail on the head. As stated, US automakers must "become competitive and compete for the American dollar".
Having worked with Japanese automakers for 25+ years, there is very strong evidence that US engineering and development effort has taken a back seat.
The problem has nothing to do with how smart the engineers and business development people are - and everything to do with how they have become conditioned to work.
The US now must learn lessons from their Japanese counterparts.
I authored a book on this very subject titled "Becoming Re-Successful". Available through Amazon or at the publisher http://www.lulu.com/content/4339719.
More at dskouson.blogspot.com
Comment by Demeron — November 21, 2008 @ 1:34 am
I propose that the US government do a "buyout" instead of a "bailout". That the US government to buyout ONE of the automaker and reorganize it under a new administration.
This doesn't mean that the government should take over the auto industry. I am proposing that the government to enter the market as a competitive player, to establish a BASELINE of affordable, reliable, and environmentally friendly cars. In turn, I hope this will motivate other US manufacturers to step up to make better products. And in time, also return the government owned corporation back to the control of free market.
I don't have faith that the current corporate mentality and their corporate leader will turn their companies around. And they obviously have not shown they have the motivation by flying around in expensive jets and taking high salary while their companies and workers are in trouble.
Comment by hng — November 24, 2008 @ 12:06 am