Sunday, March 29, 2009

Obama's Auto Bailout

Also see: Another Auto Bailout

Of course, the left has a point here; they make auto workers beg, plead, and sacrifice (and break contracts, 'er, renegotiate?) while bending over for banks when they unload dough on them.

Then again, the execs are stealing the loot, so.... not one damn dime!

"Obama autos plan may hold additional aid; But president calls for drastic change in the industry" by Bloomberg News | March 27, 2009

WASHINGTON - President Obama yesterday as he answered questions at a White House town hall event online:

"We need to preserve a US auto industry. We will provide them with some help [even though], it's not popular [right now to assist automakers. The] current economic model of the US auto industry is unsustainable."

Then why the last 25 years of outsourcing and offshoring?.

"Obama joked that "the only thing less popular than putting money into banks is putting money into the auto industry"

Do you see me laughing, readers?

Related: The Boston Globe Smokes Pot

Obama's auto task force will probably recommend that the government make more money available to carmakers, US Senator Debbie Stabenow, a Michigan Democrat, told reporters. Conditions are likely to include downsizing and continued restructuring, she said....

So the "JOKE" is ON YOU, workers!!!!!

White House press secretary Robert Gibbs said later that the president likely will reveal his plans before he leaves Tuesday for a trip to Europe that includes a meeting of the Group of 20 nations in London. Meanwhile, Citigroup, which received $45 billion in government rescue funds, may be the "third-party servicer" chosen by the Treasury Department to manage $5 billion in aid for US-based suppliers of auto parts.

Are you effin' kidding me?

Citigroup will probably work with GM and Chrysler to decide how to disburse the funds, said Neil De Koker, president of the Original Equipment Suppliers Association, a trade group. The program may start sooner than an initial estimate of three to four weeks after a US Treasury statement March 19, he said yesterday.

The only ones that don't are the ones serving the Amurkn people!

Suppliers face a cash shortfall as automakers reduce production after sales fell last year to the lowest since 1992. The delay in the program may mean some suppliers will go bankrupt before the aid begins to take effect, said Laura Marcero, a partner in consulting firm Grant Thornton LLP.

"It's not going to be in place quick enough to prevent some of the failures that are already starting to happen," said Marcero, who is based in Southfield, Mich. Citigroup is probably the only third-party servicer, and is working with the Treasury on the terms of the supplier aid, De Koker said.

Citigroup spokeswoman Andrea Hurst declined to comment. The third-party role was outlined in the Treasury's initial description of the program. Senator Carl Levin, a Michigan Democrat, said yesterday that Obama's task force will announce more aid for GM and Chrysler within a week.


Meanwhile, on the assembly line:

"About 7,500 workers leaving GM voluntarily" by Associated Press | March 27, 2009

DETROIT - .... Both GM and Chrysler are living on a total of $17.4 billion in government loans and are seeking another $21.6 billion. The Obama administration's auto task force has indicated it may offer more aid, but further concessions are possible from both the companies' stakeholders....

The departures and other actions taken by the company "will help ensure the long-term viability and future success of General Motors," Gary Cowger, group vice president of global manufacturing, said in a statement.

GM has enough workers on layoff to fill all 7,500 vacancies created by the departures, the person familiar with GM's plans said. But if demand increases and workers are needed, the company could hire new people at a new lower-tier wage of about $14 per hour, the person said.

The UAW agreed to the lower-tier wage in its landmark 2007 contract with the automakers....

Is that what this is all about? Busting another union?