Tuesday, November 22, 2005

This is What I Have Been Talking About

Several times over the last few weeks I have pointed out that GM is in serious trouble and major changes are coming. Now they have announced that they will close 9 plants and cut 30,000 jobs. Three of those plants are located in Michigan. This is a major blow to a lot of people, but anyone whose eyes are in their heads could have seen it coming years ago. CEO Wagoner says that they have no intention of filing for bankruptcy but I'll take a "wait and see" on that.

As far as the UAW's response goes, they are right that many will suffer unfairly. All I can do is ask them "When has life ever been fair?". There is no workable solution that will not hurt some people who do not deserve to be hurt. They are right in saying that GM needs better products, but these don't appear over-night, and they can't keep paying people to make things that are not selling. Equally important, but unsaid, is that the worker compensation package is unreasonably lucrative to the workers. They deserve to be well paid, but a large number are over-compensated for what they do. (but the same can, and should, be said of management and the executive pay. I am still saying that both GM and the UAW need to consider a top to bottom pay cut for all.)

Part of GM's problem is making promises they cannot keep.

My employer has a couple of contracts with GM but we have contracts with other companys as well. It might affect us but I don't know how much.

Michigan is an economic mess, and we need to wean ourselves off of our dependence on the Auto Industry.

2 Comments:

Blogger Crazy Politico said...

You are scaring me, a UAW guy not screaming the company has to keep hands off the workers. Don't post your real name, the union goons will be looking for you.

I've bought 3 new cars in the last 2 years, and none are US made, which actually bothers me. But when I can get a 10year/100,000 mile warranty, free roadside assistance, and more features on a Kia or Hyundai than I can on a Chevy or Ford, and pay 2 or 3 grand less, it's hard to not vote with my pocketbook.

In the case of the Elentra I bought this spring, it's got as much interior room as a Chevy Malibu (my first choice), a little less cargo room (not an issue) but came with CD, Sunroof, cruise, A/C, power door locks, etc. for under $14k, the Malibu would have been nearly 5 thousand more, and had GM's less than stellar warranty.

7:05 PM  
Blogger shoprat said...

Actually the car company that sells the closest to completely US made cars is Toyota. Most of what they sell in America they make in America.

9:09 PM  

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