The Conservative Cave
Current Events => Breaking News => Topic started by: DarkHalo on October 21, 2008, 12:14:42 PM
-
As recently as June Kerkorian and his Tracinda Corp investments backed the turnaround plans of Ford management. Now hes pulling out of autos (he was previously an investor in both GM and Chrysler) and focusing more on energy and gaming entertainment. How long till we see 'GM-Ford-Chrysler Corporation' as the sole American auto manufacturer? Thats sorta what happened in the defense technology industry and is happening now in the banking sector.
NYT Story (http://www.nytimes.com/2008/10/22/business/22auto.html)
-
Defense aviation in particular. Still, all three of them are trying to swim with a millstone as long as they have the legacy of the UAW retirement benefits package tied to them. Not that that is all the UAW's fault, the corporations agreed to it without thinking about the freight they would be carrying in the long term, they are as much to blame as the UAW for the situation. Seems like only complete bankruptcy, selling assets without corporate continuity, or Governemtn takeover of their retirement programs are the only things that could ever get them out from under. Moving completely out of Michigan probably wouldn't be a bad idea either.
-
Defense aviation in particular. Still, all three of them are trying to swim with a millstone as long as they have the legacy of the UAW retirement benefits package tied to them. Not that that is all the UAW's fault, the corporations agreed to it without thinking about the freight they would be carrying in the long term, they are as much to blame as the UAW for the situation. Seems like only complete bankruptcy, selling assets without corporate continuity, or Governemtn takeover of their retirement programs are the only things that could ever get them out from under. Moving completely out of Michigan probably wouldn't be a bad idea either.
I remember some talk of GM handing over some insane amount of money ($60 billion?) to the UAW to assume all future responsibility for retirement benefits?
-
I remember some talk of GM handing over some insane amount of money ($60 billion?) to the UAW to assume all future responsibility for retirement benefits?
Believe they were trying to negotiate that, but IIRC it was a nonstarter with the UAW which would prefer to have nothing later rather than see any benefits reduced now, no doubt trusting the Government to bale out the members if they do succeed in destroying GM, which appears the likely destination on the present heading.
-
IF the UAW does what the other unions have done to some airlines they had better hope they find jobs to go to. Otherwise they are going to end up sucking the hind end of nothing on our tax dollar.
-
If the auto makers had fully funded their pension/retirement plans all along, would they be in this predicament?
Thats an intriguing question. Honestly I had just assumed the unions to be the typical self centered greedy entities I have had to deal with as customers for years. Has GM intentionally underfunded its pension funds?
-
If the auto makers had fully funded their pension/retirement plans all along, would they be in this predicament?
Yes -- the funding of th retirement accounts has nothing to do with the ongoing Union shakedowns.
It just exacerbates an already tenuous situation created by a combination of union thuggery and management lack of vision (I guess the lessons of the 70s never took).