Obama urges carmakers to 'reform'

[Adsos Letter]

Source: BBC

US President-elect Barack Obama has welcomed the multi-billion dollar aid package for US carmakers, but said the industry faces some "hard decisions".

The US government is to provide $17.4bn (£11.6bn) in loans to help General Motors and Chrysler survive.

Mr Obama said the package was a "necessary step" to "help avoid a collapse" in the industry.

"With the short-term assistance provided by this package, the auto companies must bring all their stakeholders together... to make the hard choices necessary to achieve long-term viability," Mr Obama said.

Read more: http://news.bbc.co.uk/2/hi/business/7793108.stm

[fasttense]

1. Seems the repukes couldn't quite kill off the unions.

But they tried mighty hard.

"One of the conditions of the loans is that the companies renegotiate pay and pension packages with staff.

The United Auto Workers (UAW) union said it was unfair to demand stiff concessions from the workers.

"When I listen to them talking about restructuring they want it all to be borne on the backs of the workers," union activist and retired GM worker Gregg Shotwell told the BBC.

"Now 8% of the cost of assembling a vehicle is labor. What about the other 92%? That's where the waste and mismanagement and fraud comes in."

[MJJP21]

2. A good start

for the car companies would be to extend their warranties on the drive trains and make good on some of the shoddy products they made. Don't get me wrong as I want the big 3 to survive well into the future. However tell me who here has not heard about the dismal record of Ford and Chrysler transmissions? Tell me who has not heard about GM V6 engines and the problems they have had with bad head gaskets (SINCE 1995 !!)? The gaskets are not compatable with the "orange" anti freeze and GM knew about it since 1995 and was not corrected intil 2005. There was supposed to be class action suit but it never materialized.
People aren't bypassing american cars based on price they are passing them up because of reliability issues. Show me an american car that is not leaking oil in the drive way at hundred thousand miles and I'll show you a Subaru with 213,000 miles that doesn't leak a drop and never had a starter, or alternator put on. Nuff said?

[dolphinsong285]

3. So True

Actually, this is the first I've seen reliability mentioned. Media and others have mentioned energy, modernization, production costs, administration costs.....all relevant, but reliability is the key. I'm an unashamed Hyundai owner. My car was made in the reprehensible Sen.Shelby's state. (I did, however, send off a little note to him last week asking him what his real agenda was.) Don't know anyone who wouldn't support a reliable American-made car. It's been interesting, however, to hear acquaintances-none of 'em wealthy- jump on the "vilify the union" propaganda wagon. Man, these Republicans are stellar propagandists.

[Robbien]

4. Obama needs to stay away from the GOPer code word "reform"

Reform these days means screw the public and turn the resources over to the elite.

[Sex Pistol]

5. Hell, the government is the elite. Call it what you want, but the Big 3 must improve their...

balance sheets.

FAST...!

[jody]

6. Problem is not one Dem or Rep leader has a clue re "car-makers reform" that would work. n/t