Big 3 Bust Implications

You know - unintended consequences.
Lots of social/economy related stuff.
But also much related to limiting competition.
Possibilities:
Toyota/Honda et all jack up prices.
Toyota/Honda et all attempt to lower wages.
UAW gets the vote at transplant sites.
All kinds of interesting possibilities.
Anybody care to speculate?

--Vic

 

The Michigan 3 (they aren't the big 3 anymore - Toyota is bigger than
GM worldwide; some call them the Detroit 3 - but they aren't all based
in Detroit) will reorganize under bankruptcy protection just like the
airlines did. UAW will be forced to eat consessions.

 

The Michigan 3 (they aren't the big 3 anymore - Toyota is bigger than
GM worldwide; some call them the Detroit 3 - but they aren't all based
in Detroit) will reorganize under bankruptcy protection just like the
airlines did. UAW will be forced to eat consessions.

 

Adios tp big bonuses and lousy management.

Hello to new technology and rebirth of progress

 

A wet dream for all republicans, especially the johnny reb
republicans. You guys won't be happy until everybody sports missing
teeth and marries their cousin or bloodhound. Careful what you wish
for. The economy of the south will be worse that the post-civil war
economy. Once you bozos bust the UAW the auto workers in foreign non-
union shops are going to plummet.

 

Their pensions have long been guaranteed by the federal
government. This is one of the reasons why a bailout was
said to be cheaper.

 

Actually, the pensions are only guaranteed to a certain limit,
determined, in part, by their age at retirement

In addition, the other retiree benefits, like health insurance, are
not guarenteed.

Jeff

 

The details of what each Big 3 retiree blah blah would
receive is so nuanced that I was only trying to convey that
the cost will be huge. For elaboration on how much is
guaranteed, see the wiki entry
http://en.wikipedia.org/wiki/Pension_Benefit_Guaranty_Corporation

Actually, if one is an eligible PBGC pension recipient, then
one gets a sizable tax credit for their health insurance
premium, again costing the taxpayer money.

 

And what exactly is your point? "Costing the taxpayer money" blah blah
blah.

Why not go after corporate tax gamers/cheats based in Bermuda, Caymans,
Dubai, et al?

Sell anything to Honda today? Toyota? Oh, too bad...

 

It might surprise some that the gov will pick up the pensions, but
there it is. Didn't know about the med tax credit.
I've heard that the GM pension costs are or about to be severed from
GM's books.
Actual facts about financial details are hard to come by.
Really think Corker has the best and most objective view of the
details.
It's my impression - and it's only an impression - that bankruptcy of
any of the Big 3 will cost the taxpayer and economy many times more
than the solution that has been proposed by Congress.
But that doesn't matter if you hate GM or UAW.
THEY HAVE TO DIE!
DIE! DIE!
heh heh

--Vic

 

The individuals that were counting on promised pensions to carry them
through retirement are the biggest losers. Lousy management types are
usually rewarded new positions through some type of crony-ism.....

 

i dont see honda/toyota/nissan rocking the boat. they pay well enough,
and theyll continue to do so. theyve always priced slightly higher than
american cars on average, but you get what you pay for, generally. not
so much to be said for the german automakers.

and theres always hyundai/kia to consider as well. theyre not as crappy
as they were before.

 

the first thing GM will do will be to give upper management HUGE bonuses
for all their smart "cost-cutting efforts", which is exactly what roger
smith did after moving plants to meh-hee-co.

 

How much do you think Honda and Toyota would pay if the UAW hadn't
established $28/hr contracts for the Big Three?

 

Something that's been brewing in my mind since finding out that Ford is
faring better that the other 2 U.S. automakers. If G.M./Chrysler go
bankrupt soon, Ford will be okay for awhile. After the BR proceedings and
retooling etc., G.M. and Chrysler will have an distinct advantage with lack
of any previous liabilities including previous warrantes on their previous
products for instance. Ford will still carry all its previous liabilities..
This will probably result in a unfair result in an apparent non-competive
U.S. marketplace per bankruptcy proceedings future results. Ford, as a
result, will be at a disadvantage carrying all its baggage to compete with 1
or 2 U.S.leaner competitors.

To me, this is extremely obvious. Haven't seen this observation on any U.S.
news media commentary or politico. Let alone, the Ford CEO himself.

As a result, I believe its beneficial for Ford to intentionally go bankrupt
to remain competitive in the long run. That, depending on future
developments, may be Ford's intention. Go figure....
--
Dave

2008 Focus , 5 spd no frills coupe- to date per fillup - 33 mpg low - 39 mpg
high.

How much CO footprint to remove and transport basic materials for batteries
and to manufacture the batteries for the Ford Focus and any other hybrid?