At GM, the Endgame Begins

US auto mfg.

Our country had a huge lead in time and technology in a tremendous industry. That being the manufacture of automobiles. Over the last six decades the UAW has managed to make all manufactured brands (past and present) virtually bankrupt. It would seem people (including the UAW) could look back at the carnage trail and get suspicious of something. I was visiting my sister in florida four years ago and some of the retired GM UAW employees were laughing about their large Christmas bonuses. I thought it didn't take a lot of imagination to see why the companies were going down the tube. There are to many workers out there with a $25 wage and benefit package that can't buy products from a buisness with a $80 benefit package. I say, let the campanies go bankrupt and the hopfully a judge can instigate sanity into the buisness of making autos. The union could avoid this (salried too) by taking a50% pay cut to keep the buisness afloat and buy more time. There apparently are some wage considerations coming in the next few years anyway. If the UAW wants to save the company as is, get with it.

floyd scholten of SD @ Nov 12, 2008 21:19:43 PM

The end of the republican party

Here is my prediciton:

If the government allows the big three to declare bankruptcy, we will go into an economic depression, the Republicans will be blamed, and it will be the end of the Republican Party.

Trickle down and "free" market economics will go down in history as the dumbest economic theory to have ever been tried and failed. There are taxes and regulations in EVERY country and "FREE" markets are nothing but a way to strip the wealth out of this country....IN that, the Republicans have succeeded.. in everything else important, the Republicans have failed

I'm an independent... if the Republicans don't vastly change their economic stance, which allows rich people and corporations to screw the working class and this country, I will NEVER vote for any of them again.

BTW, I'm losing my job at the end of the year, my 401k has lost 80,000 and my house is losing value.. Good job Republicans, your economic ideas are morally corrupt. I was one of the responsible people who didn't go into debt up to their eyeballs.. I guess I should have taken all the equity out of my hnouse and gone travelling.. at least I'd have some memories resulting from my life savings instead of a statement saying all my momney evaporated due to government mismanagement and the lack of regulation in our economy.

I have worked veyr hard in my life to see everything evaporate thanks to DUMB economic ideas that have proven to be complete failures.

American Worker of OH @ Nov 12, 2008 16:51:08 PM

Domestic auto makers, may they rest in peace.

Readers,

At this point, the horse has left the barn... the last shot has been fired and the bullet is on its way.

Ok, enough of the shallow metaphors. The facts are these... we as individual consumers are ultimatley to blame for ALL of this. Everybody wanted an SUV, the car companies built them and built ever bigger and thirstier year after year since about 1988 when American big car fever came back into vogue. Before then, this country was making real progress in automotive fuel efficiency which in turn reduced our dependence on oil from countries that have always despised us and now want to kill us. But that's a topic for another day!

At any rate, as "individual" we did not care about consequences. Now, we MUST give much greater consideration to our purchasing selections and ability to pay for it. Just because you desire it does not mean you can have it. Well, the money was easy and given with no regard except for fat commissions. Consumer's adopted behavior of spoiled children and businesses responded and profited from it until the well ran dry. Now everybody is finger pointing except at themselves. Collectively, our arrogance that we are soooo special and unique that I can have anything I want was well catered to by the sub-prime lenders and short-sighted homeowners mortgaging themselves to their eyeballs. Always thinking that they are immune. We must break the "only me and the rest of the universe can go to hell" attitude. I have heard so many times before when asking someone why buy that gargantuan McMansion or oversized car? Do you really need it? The typical response was..."no I don't need it, but I want it." Imagine that same rationale multiplied about 10 MILLION times per year for many years! Well, spoiled little "adults" of America, the overindulgence party is over.

High powered execs are bailing with golden parachutes intact. Why should they do without? Large banks have failed, the construction industry has taken a nose-dive, what little manufacturing that hasn't been "outsourced" to China, India, and elsewhere is taking a hit, and now the the auto industry is next to fall. And it will effect us all.

I remember a scene from the movie "Full Metal Jacket". Wherein at Marine bootcamp, one overweight recruit nicknamed "Private Pyle" was on a strict diet to lose wieght. During a suprise inspection, the drill sergeant played by R. Lee Ermy discovered that Private Pyle had taken a jelly donut from the mess hall and stowed it in his foot locker. Drill sargeant (DI) called the whole platoon to attention and announced this one little infraction to each of them. He ordered Private Pyle to eat the donut and the rest of the platoon to start doing push-ups. The DI yelled to Pyle, "You go ahead and eat it Pyle, they're paying for it!" This is the scenario we all face now on a much larger scale... our children and grand-children will be doing the push-ups.

THINK dear readers before it's much too late... think

DAN B ROSS of GA @ Nov 12, 2008 16:23:09 PM

GM Ford Chrysler

A bailout we could all participate in:

First requirement would be to apply it to native auto companies only. I don't actually know how this would be accomplished, but Chrysler, Ford, and GM only. Lawyers get paid big bucks to figure this sort of stuff out.

Second requirement would be to spread it around so that people all over the country would get in on it.

Third requirement would be to encourage fuel efficiency, to reduce our dependency on imported oil.

So! The idea is to craft a government rebate on auto purchases of Big Three vehicles only; with the amount being related to the rated fuel economy. Perhaps it could be $100 for each highway mpg, with the minimum eligibility being 25. Therefore a car getting 30 mpg would earn a rebate of $3000. Other formulas might be construed, but this example expresses the idea.

Detroit would sell more cars. People all over the country would get to buy them cheaper, thus participating in the bailout. Local dealers would get the sales business. CAFE would be increased, thus reducing our overall oil demand.

Dreamer of MN @ Nov 12, 2008 15:33:27 PM

Buy American

Working person drives Toyota to unemployment office to pick up his check while wondering what happened to the jobs.

Corporate executive drives his Mercedes to his monthly board meeting, where the board will declare bankruptcy as he wonders what happened to his business.

The weathy person drives his Lexus to his brokers office to find out what happened to his dividends.

Later that day each goes to their respective bars, where they order Russian Vodka, English Gin, Scotch Whiskey, and German Beer all the while wondering what has happended to the U.S. Economy

Jihn Killorin of AZ @ Nov 12, 2008 09:19:26 AM

Face the truth

The former big three are off!

They stayed on all aspects in the last century. Do you realy think anyone outside US would buy a US-car? Look at the european or asian carmakers, they sell their cars in the US and earning money. Any Administration must be foolish to give GM and Co. billions of loan without any chance to influence the reorganisation. Only the chapter 11 would allow indepndent assist and this they fear. Not only Wagoner's plans look good on paper, but unfortunatly they don't work in reality. It's better to incentiavate the europeans or asians to built new plants with contemporary tecnology. This would at least ensure that umemployment would be minimized.

Don't give up, this will not be the end of the world.

Newman @ Nov 12, 2008 05:37:05 AM

bankrupcy is OK

Bankrupcy would be the best plan for GM. It is obvious the current regime cannot fix the problem. The UAW issues would have to go away to resolve the issue and the gov't would be the only entity that could stand up to the UAW. I like the idea that the pensions would be capped by law until the stock market regains it's past performance. Let the automotive people fall down to where almost every other industry is today as far as pensions and retirement programs. I'm tired of paying the high prices the automotive giants have created. None of the automobiles in the market place are worth the prices that are demanded. If everyone would stop buying them they would have to reduce the prices and build cheaper vehicles. I would rather pay $10M for a vehicle that would last 100,000 miles and be worth nothing after 3 years than pay $40,000 for a vehicle that I have to keep for 12 years & will have 400,000 miles on it. I have to pay the huge labor prices that Mr. Goodwrench demands to keep it running when it breaks down just after the warranty is out. The parts to repair it can only be bought from from GM in most cases and the cost is very high but if you try to trade in one of these engineering nightmare you will really pay through the nose. LET OUR CAPITALISTIC SYSTEM WORK!

Jeff wattenbarger of TN @ Nov 11, 2008 20:07:28 PM

GENERAL MOTORS - ET AL

IT SEEM'S IMPOSSIBLE THAT THE GOVT. COULD LET THE MAJOR CAR FIRMS GO UNDER EVEN THOUGH IT IS THEIR FAULT.

THE AUTO MARKET WOULD THEN BE CONTROLLED BY TOYOTA, HONDA AND THE OTHER FORIEGN CAR CO.

WE HELPED ALL THE BANK'S EVEN THOUGH THEY WERE AT FAULT. WHY NOT THE AUTO MAKERS UNTIL WE GET OUT OF THIS MESS THAT WE ARE IN.

WE HAVE MADE A LOT OF MISTAKES LETS NOT COMPOUND IT ANY FURTHER.

HARRY FOREMAN of FL @ Nov 11, 2008 15:24:58 PM