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Auto Bailout Heats Up

Again the CEO’s of the big three automakers are back in Washington to see if they can still get an auto bailout from Congress. General Motors, Ford and Chrysler are still looking for money to help keep them afloat.

What amazes me is that the three CEO’s think that if they drive down in hybrid cars (instead of their corporate jets like they did last time), that they are going to have any more of a chance to get the money to fuel their needs.

After going back to the drawing board, the companies came back to show what they’re going to do to improve the condition of the three giants. Of course it’s no longer $25 billion that will be needed to save them, this week it’s at $34 billion. Who knows where it will be when it’s all said and done.

As long as the UAW has a hold on the three companies, they will go out of business. The legacy costs are out of control. There are over 15,000 retirees that get paid $31 per hour from their pension plan for not doing anything for the company. The UAW has caused the costs of cars, truck and SUV’s to get out of control. It’s said that $2000 of of the price of every vehicle is due to legacy costs.
With obligations like that how are these companies ever going to turn a profit? There is no way for any company to be able to stay in business if the payroll cost are going up while the workforce is shrinking. How are they to keep their prices in line with their competition?

If you haven’t noticed, you don’t see any of the foreign automakers that build cars here in this country in Washington looking for a handout. It’s because the UAW has no existence in their factories and before you say that it’s not fair that those workers don’t have the right to have an union. They don’t want it, they make on average $35 per hour to work on an assembly line that the robots do most of the work. Before you say that $28-$42 per hour isn’t much for someone living in New York City, these workers are in Alabama and Tennessee, two of the poorest states in this country.

I have always bought American made cars because I believe in keeping my money in this country. It’s not that I’m against the rest of the world, it’s because I’m an American and proud of it. I will continue to buy American made cars as long as they are still American made cars. I know that no matter what happens to these three companies, there will always be cars made here in this country.
Even if the three of them were to go into bankruptcy and close their doors, someone else will buy their equipment and start to build a new automobile made here in America.

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