Southern Senators Oppose Big Three Bailout

Pilgrim

Veteran Expediter
Retired Expediter
We all better keep an eye on this - if our Senators and Congressmen screw this up it could have a devastating effect on the expedite business for years to come.

Bloomberg.com: Politics

One thing that seems to be missing from all the articles on this subject is the requirement for restructuring of the UAW contracts. If there is any bailout passed without drastically reducing the UAW costs to the auto makers, it will only be a sop to the union. As it stands now, the big three have about $2600 per car in union-related overhead that the foreign manufacturers do not. It could be that the only way for GM or Chrysler to deal with the UAW is to declare chapter 11 reorganization, and hope that it doesn't cause the financial collapse of their suppliers. At least Chap. 11 would allow for them to shed the parasitic union. Granted, they need to cap the bonuses, salaries, etc. of the executives along with all kinds of other cost controls. However,dealing with the union is key to the deal being successful.
 

LDB

Veteran Expediter
Retired Expediter
Everyone should oppose it unless there are significant limits on expenses on both executive and union sides.
 
R

rangell218

Guest
I dont blieve a dime should go to auto makers that failed at there own game, the people that worked there put there self out of a job making 25 hr wasnt good enough they either wanted to strike or the union put the company in a spot , there are auto makers in this country making it, why should we give money to compainies that are only going to be in the same boat in a few years, every business around is trying to get a bite out of the money that was going to housing now you hear nothing about that, I understand everyone in this business is saying if they dont get the money expediting is going to be bad well I have read at least 100 times from members that when business is slow we need to do things to get runs or change companies well now is a good time to start
 

Tennesseahawk

Veteran Expediter
It only makes sense the South would oppose the bailout...with Toyota and Nissan a force to reckon with down there...Northenerns don't appreciate what they got...the south thinks 22 bucks an hour is gold....:)

For a decent day's work, $22 is a good wage, especially with the cost of living down south. I don't understand why the few privileged who work in the auto industry (and yes, they are privileged, considering you could replace them in a heartbeat) think they need so much more than the average labor Joe who would do a helluva lot more work in a day.

BTW... I don't hear a lot of Southerners complaining about those jobs, unlike the unions. At least they're working, unlike the union sheep. If the unions have taught them anything, it's be happy with what you got.
 

houts

Seasoned Expediter
Well, Looks like they are gonna get bailed out after all... I wonder if the GM loan I have can be included in all that....:D
 

Jayman

Expert Expediter
Im indifferent regarding this bail out. Hate to see the American auto industry struggle. But, it doesnt seem that the economy is hurting Honda, Toyota, Nissan, etc.

Our auto industry has been failing for many years. Not only in management, but also in engineering and manufacturing. If the the big 3 are bailed out...I dont see this changing.

So many things need to be changed. Salaries for blue collar and white collar workers needs to be brought under control. Better quality on some of their products. (Not all American cars/trucks are sub par) Overall cost of doing business has to be reduced.

I have seen cases where I picked up a small load from a supplier and delivered to a warehouse owned by *deleting company's name*. I knew my company had also sent another truck an hour ahead of me to do the same thing. As it turns out...both loads could of been sent on one truck and delivery would have been within a reasonable amount of time. Besides, the receiver didnt seem to be waiting for the load or anything. Yeah, that is good for the company I work for. But, its an example of wasteful spending.
 

arrbsthw

Expert Expediter
Maybe the auto makers should get rid of their company
jets and use some of the $35,000,000 salaries they get to
help the company... just a thought!
 

joebob1_30132

Expert Expediter
It only makes sense the South would oppose the bailout...with Toyota and Nissan a force to reckon with down there...Northenerns don't appreciate what they got...the south thinks 22 bucks an hour is gold....:)

Im with Tennesse on this one ..22 /Hr is gold these days (Relative to the cost of living)And the southern plants will preserve jobs for their kids .. There is plenty of greed to go around from top to bottom and I believe capitolst markets do correct themselves. Anybody in the world can manufactor like we can now anybody with a laptop can start their own business in a hut on a one acre island in the middle of the pacific...
All of us maintain our cost to do business on a smaller scale the big three must do the same. Both sides must come together and give for the good of their company .
Let this thing ride out and let the big three go ..they will reorganize and I will buy now while its cheap ...
The government is a poorly run business they have no right to use my hard earned money to bail out One group ...whose next ???? Driver harder dive faster the government needs more money
 

layoutshooter

Veteran Expediter
Retired Expediter
This country OWES the Big Three a HUGH debt. People forget that without them we would have LOST WW2. People forget that the auto industry and related suppliers employ almost 1 in 10 workers. People forget that AFTER 9/11, when the economy was on the brink, the Big 3 stepped up with 0% auto loans to help stimulate things. What about the 100 million dollars in un-needed environmental regulations? I don't dispute that things need to change. I don't dispute that they were not always on top of things. That wages and benifits are out of wack. Just remember, NO forgien auto company builds transmissions, engines etc that our military uses. We NEED the Big 3. I kinda think that the main reason the Democrats WANT the U.S. Auto industry to fail is to insure that we will no longer be a Super-Power. After all, they believe that the U.S. is to blame for ALL of the worlds problems. They believe that if the U.S. went away so would all the other problems world wide. We ALL are to blame for what is going on. WE elect crooked polititions. WE ask for regs piled on top of regs. Why? No one reads history. No one learns much of anything anymore. A nation without heavy industry fails. China knows that. So do most of our enemies. Wake up. They are only asking for a LOAN!! The only other time one of the Big 3 was LOANED money was Chrysler. They PAID BACK that loan 7 years early and the taxpayers made a PROFIT on that loan. How much you wanna bet that the Banks don't return the favor like Chrysler did? Layoutshooter
 

Turtle

Administrator
Staff member
Retired Expediter
This country does NOT owe the Big Three a HUGE debt. This country supported the Big Three, and even continued to do so when they were putting out crappy cars that cost more, until it became clear that our support got us nothing in return other than more UAW strikes for higher wages and benefits resulting in even higher priced cars that were even crappier. If anything, the Big Three owes US a HUGE debt for keping them in business as long as we did, in spite of themselves.

The auto industry and related suppliers do NOT employ one in ten workers. That 1 in 10 number reflects taxi drivers and anyone else who uses a car in their job, gas station employees and Jiffy Lube and Wal Mart mechanical experts, car audio salesmen, new car smell perfume salesmen, and lot of other way, way, way peripheral jobs related to the auto industry.

The Big Three stepped up with 0% loans (that very few people qualified for) not because they were stepping up to help out the country after 9/11, but because their stockholders were wetting their pants over low auto sales.

The signs of what was to come, of what is happening now, has been in the face of the Big Three for more than 30 years. And instead of addressing it directly, they tried to make us feel guilty, to make us feel un-American, for not buying American, while at the same time they're building assembly and parts plants in Mexico and in Central America.

The Big Three needs to be taken out back to the wood shed and given a good old fashioned what-for. Which is exactly what is happening.
 

layoutshooter

Veteran Expediter
Retired Expediter
Yea right, just U.S. Department of Labor stats, not mine. Crappy cars? I have NEVER had one yet that I did not put AT LEAST 150,000 miles on. My 1990 Chevy pick-up had 294,856 miles on it and it STILL had the original engine and tranny. Your very freedom came from Detroit, the Arsenal of Democracy. You would be goose stepping and using chopsticks if it wernt for industries in this city. I don't dispute that they have not always been right at what they did and that changes are needed, BUT, is congress the ones who should dictate that ? They are even worse!!! As bad as they can be they are better then Toyota, let them build our military. Layoutshooter
 

Tennesseahawk

Veteran Expediter
The federal government has done 4 things, that I can think of, that helped the demise of the big 3...

Unreal CAFE and safety standards.
Support of the UAW and its unrealistic demands.
High corporate tax.
Allowing for high fuel prices to kill the SUV market.

I'm sure there are more, but those are the main ones. Notice all of them are liberal policies.

Here's a bit of info some of you might find interesting; tho some will call me nuts. Regardless, it shows a means to an end for the free market American auto. From the 10 pillars of communism...

6. Centralization of the means of communication and TRANSPORT in the hands of the state.
 

Pilgrim

Veteran Expediter
Retired Expediter
One can't help but wonder if the bailout being requested by the Big Three will be structured on similar terms to the deal that AIG received - see article below:

Senate chair gets mad over AIG retreat - MarketWatch

If all the corporate big shots operate with the same mindset (which appears to be the case), these taxpayer funded financial rescues will end up being the biggest scam in American history. Keep in mind that the government bureaucrats administrating the use of these funds have no idea how to hold anyone financially accountable for anything. If anyone doubts this, read more about how the Katrina funds have been administrated.
 

Turtle

Administrator
Staff member
Retired Expediter
Yea right, just U.S. Department of Labor stats, not mine.

Yeah, right, just show me the link. :)

You won't find one. I know it's been reported a lot in the press and other places, but those reporting it didn't do their homework, either. That neat and pretty 1 in 10 number did not come from the US Labor Department, it came from a 2003 study by Center for Automotive Research on the “Economic contributions of the motor vehicle to the U.S. economy, to a multitude of U.S. industries in retail, manufacturing and service sectors, and to individual Americans.”

The Center for Automotive Research is a nonprofit research organization with ties to labor and government. The study was commissioned by the Alliance of Automobile Manufacturers.

Big Three CEO's, UAW members, and others, like to misuse (or even unintentionally misuse) the number to mean, just as you said, the industry and its related suppliers comprise 10% of American jobs, but that's not what they study actually shows.

The study concludes that “new vehicle production sales, and other jobs related to the use of automobiles are responsible for one out of every 10 jobs in the U.S economy.” There's a difference betwen "responsible for" and "employs". People read that conclusion, then stopped reading, and didn't bother to look at the actual data. The term “responsible for” covers jobs in steel, glass and electronics as well as those in taxi-driving, travel and advertising companies, among others.

In addtion, the study used data from 1998 to 2001, and the industry has changed significantly since then. Employment in the motor vehicles and parts-manufacturing sector has fallen quite a bit in the time since. Plus, the "auto-related jobs" covered in the report include more than those dependent on the Detroit automakers - they are related to cars sold by any manufacturer in the American market, whether it is actually manufactured here or not.

In other words, if GM goes down the tubes, the entire car wash industy won't go down with it.

If you're going to use the neat and pretty 1 in 10 number, you have to use more precise wording. You could state that 1 in 10 jobs in the US are tied to the auto industry, and it would be an accurate statement, even if slighly misleading. But when you state the, "auto industry and related suppliers employ almost 1 in 10 workers," that's just untrue.


Since that initial study, the Center had done additional studies, one of which was released on Election Day. It was a study to figure out just what kind of ripple effect (jobs, tax revenue, compensation, etc.) we would see if the Big Three go down. They study was done under two set of cirmstances (bailout and no bailout) and in both cases, there would be significant short-term shocks to employment, leading to direct and indirect job losses of somewhere between 2.5 million to 3 million in 2009. (that's not even close to 1 in 10 jobs, by the way)

The study went further to extrapolate how many of those jobs would be recovered, and when. Again, two sets of circumstances, one of which is where the existing foreign automakers would expand production here in the US, and the other is that overseas production would be expanded due to the cheaper labor costs. The study showed between 40 and 59 percent of those jobs would be recovered by 2011, and did not extrapolate the data out any further than that.

Crappy cars? I have NEVER had one yet that I did not put AT LEAST 150,000 miles on. My 1990 Chevy pick-up had 294,856 miles on it and it STILL had the original engine and tranny.
Yeah, crappy cars. And I'm a Chevy guy through and through. My first non-Chevy personal vehicle was just 6 years go. My stepdad is a Ford guy. Poor misguided man.

But as much of a Chevy guy that I am, they're cheaply built. You know, crappy.


Your very freedom came from Detroit, the Arsenal of Democracy. You would be goose stepping and using chopsticks if it wernt for industries in this city.
To a degree, true, but that's also a chicken and egg thing. We had the auto plants in Detroit, so we used them. If we didn't have Detroit, we'd have come up with some other option. It's quite impossible to say that if we didn't have the Big Three and Detroit at the time of WWII that we would have lost, because you don't know what the other options might have been. Detroit was simple quick and easy.

In any case, I'm glad they were there, not that any of them decided to be there in case of a war. But mainly because at 51 years old I still cannot to this day use chopsticks.


I don't dispute that they have not always been right at what they did and that changes are needed, BUT, is congress the ones who should dictate that ? They are even worse!!! As bad as they can be they are better then Toyota, let them build our military. Layoutshooter
No, Congress shouldn't be dictating how the automakers make their changes. On the other hand, if Congress is gonna give them a snotload of money, they have every right, a duty, to find out how wisely the money will be spent, as that goes directly to the viability of them getting paid back. Without major changes, Congress would be throwing good money after bad.
 

highway star

Veteran Expediter
Owner/Operator
Correct me if I'm wrong, but wouldn't the Big Three have been PAID by the govament, and probably very well, for any work that they did? That would be us, the taxpayers, paying whatever it is we owe them for that. Puhleezzzeee...

Most of us typing here have helped them by being cogs in the supply wheel. I've never owned a Japanese car, so I, like many others have helped them a lot in that department too. An easing of regulations probably wouldn't hurt, but the Japanese companies have the same standards to meet and it doesn't seem to be as big a burden to them.

I'm still listening to the debate, but I think I'm pretty firmly in the bankruptcy camp. Make 'em work at getting better. You could liken giving them the aircraft carrier load of cash to the family that's getting into deep debt and just keeps getting another credit card to charge up. They just breath a sigh of relief and continue on, until it's too much and they're forced to buckle down. It's time for the Big 3 to buckle down.
 

Crazynuff

Veteran Expediter
Just remember, NO forgien auto company builds transmissions, engines etc that our military uses.

A large percentage of military engines are Detroit Diesels . Detroit Diesel Corp. (DDC) - Army Guide
Detroit Diesel is owned by Daimler
Daimler Trucks North America LLC ? North America's leading manufacturer of commercial trucks
We have to ask what happened to the $5.6 billion GM raised selling Allison transmission . That's another major military component you mentioned that is no longer built by the big 3 . GM raises $5.6 billion in sale of Allison Transmission - International Herald Tribune.
That part of your argument is very weak .
 

Crazynuff

Veteran Expediter
For a decent day's work, $22 is a good wage, especially with the cost of living down south. I don't understand why the few privileged who work in the auto industry (and yes, they are privileged, considering you could replace them in a heartbeat) think they need so much more than the average labor Joe who would do a helluva lot more work in a day.

BTW... I don't hear a lot of Southerners complaining about those jobs, unlike the unions. At least they're working, unlike the union sheep. If the unions have taught them anything, it's be happy with what you got.

This was discussed in another forum . My total utility bills for water , sewer , electricity , and trash pickup in KY last month were less than $50 . A member from MA paid over $300 . Housing is something else . A 3 bedroom ranch that would sell for under $70,000 here would sell for over $200,000 there . Then add the extra property taxes , insurance , and interest on the mortgage .
 
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