More on GM, Ford and Chrysler Mismanagement
Alstry begins a post today with this headline:
Nov. 20 (Bloomberg) -- Isuzu Motors Ltd. and Hino Motors Ltd. will cut truck production in Japan and Isuzu will slash jobs as demand falls.
And once again I got to thinking, and once again I found myself in a smoke filled room with a "new to me idea" that I wanted to share.
Alot has been made of executive mismangement at the "big" three American automakers, causing them to be found in the dire straights of having to beg for loans to survive. The biggest "mismanagement" they are accused of is paying their employees well and offering excellent health benefits. We are told that average payroll costs of $78.00/employee are ridiculous. "Overpaid lug nut tighteners" the cry goes up, completely forgetting that some employees are engineers and designers and lawyers and accountants and troubleshooters and chemists. "Legacy Costs" cry the whiners, citing healthcare benefits for retirees that the "big" three cannot pay as a devastating example of mismanagement that makes the domestics uncompetitive because it adds, as I have read, anywhere from $800. to $2300 to the cost of domestic cars.
And yet in America, if you do not overpay for healthcare at work, you do not get healthcare at all. Is that competitive disadvantage the fault of Rick Wagoner or Mulally?
Fool SILUNG posted today, in defense of the $25bil loan proposal: How about competing against companies who have the full support of their countries behind them? Japan, Germany, and South Korea have universal health care, we don’t. And in at least two out of three of those countrys he is correct.
Good post, SILUNG, many people here keep posting as though they do not understand that. I personally am old enough to remember the Domestics moving manufacturing up north to Canada, citing the healthcare savings as the reason.
After reading at most 3 million posts and responses whinig about the Domestics mismanagement and how they should be allowed to die their justly deserved death, I thought holy crap, these posters are selling some steep BS (EPG also closed up yesterday). Now you all may be listening to people with short positions on, but I do not really care, and that is not the point of this post.
As Alstry's post this morning pointed out, the "big" three's mismanagement did not improve sales at Isuzu. So I googled the phrase "Automobile Production Cutbacks" after I learned that GM and Ford mismanagement did not hurt Isuzu sales. In fact I bet that GM and Ford management did not cause production cutbacks at Isuzu, Mini, Toyota, Honda, Nissan, Pugeot, Citroen, Mercedes, Hyundai or Tata Motors either.
The domestics should get the loan. I know that will disappoint the member banks who would like to lend to GM at 12%, but those people really need to get productive jobs in farming or toy making or something. GM and the UAW have done their part in trying to provide good retirements and healthcare to their employees. They have stepped in where Hillarycare did not provide. I encourage all Americans to stand up for themselves and demand that the Domestics get the loan they need until Universal Healthcare becomes available to all Americans. It is time for America to stop sliding toward third world status.
Call the Capital switchboard at (202) 224-3121 and stand up for yourself.