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Originally Posted by BigRigMike
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.
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It's ok, you can direct whatever criticism you want at me, I can take it
I'm not for wiping out the Union completely and leaving everyone high and dry. However as long as the Union is spending money to get special favors from elected officials and so forth along with the other shenanigans they seem to do, that needs to stop. If you read my posts, Under Chapter 11, I am all for helping retirees and current employees that were promised all sorts of benefits however newer employees should fall under different benefits and so on that are more in line to be competitive with the foreign car companies that operate within the US and pay US wages. If all we do is bail out the Union completely thus saving GM from bankruptcy again, I just don't see it being the end all saving move and I do foresee us in the same situation only the Government and the Union would be in even more control at that point. I don't know all the answers and I don't claim to understand everything that goes on in the auto industry. Far from it. I am simply viewing this thru a lens of conservative and keeping our country a free Republic and away from socialism in any form..
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Originally Posted by Dragoneye
Maybe 'bias' was the wrong word...But what you said is exactly what I meant. They have the company's interests at heart (assumed), and in that mindset; they don't see bankruptcy as a good way to protect those interests...so they're going to paint it in a more negative light. That's all I meant.
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They have their own interests at heart as well since lots of money and political ties are involved.