Quote:
Originally Posted by Supermans
What is your take on the whole auto bailout? Do you feel the Union's should be bailed out? Or as some have suggested doing everything a Chapter 11 would accomplish without calling it Chapter 11 which is a way of keeping the Union intact and powerful.
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Ok back on track.
I am starting to become more in favor of Chap 11 as long as the financing necessary is lined up before hand. For them to say that $18 Billion is all that they need and then come back and say the total could be $30 Billion. I am a little disappointed that they made the assumption that the market would be 11.5 million units and it appears that the market is headed for 9.5 million, that does not make me feel confident. And then to make the statement that funding might be necessary in 2013 and 2014 it is just starting to become too much for one company. I am becoming more in favor of not giving more money to GM and that the money should go to fixing the root of the problems. So that market volumes get back up to 12-13 million units.
As for the union, UAW will survive chap 11. I think that the contract is close to what non-union factories make so a judge would not force steep concessions. I doubt any judge would completely wipe out the legacy costs. And this is not directed at supermans but I am tired of reading about how legacy costs need to be wiped out completely. Healthcare was agreed to by both parties as part of the compensation package. I would liken it to someone telling you that you were paid to much last year and you need to give some of the money back.
I am not a huge fan of the entire stimulus but if both sides are not happy then that means it was a good compromise.