Tuesday, February 17, 2009

GM & Chrysler - Viable?

Without restructuring their union contracts, specifically the pension, healthcare, and retiree costs, there’s very little chance of both of these two remaining in business.

Even more so, if one of the bailout conditions is that the government forces you to make overpriced, underfeatured “green” cars that are loved by politicians and bureaucrats, but hated by the customers.

But if you’re representing the UAW, why make concessions? At this point, it certainly looks like GM and Chrysler will come to the table empty handed.

After all, with Obama, Pelosi, and Reid in charge, what are the odds that they are going to allow either a) a bankruptcy court restructuring of the contract, or b) concessions that will come out of the pockets of a key Democratic special interest group?

Indeed, one of the key Democratic campaign promises was to unleash union thuggery through the “Sign the Card, Because We Know Where You Live” “Employee Free Choice Act”.

In some conflicting news, Obama announces that he may not be opposed to bankruptcy for GM and Chrysler. On the other hand, he's dropped the Auto Czar in favor of a troika of Geithner the tax cheat, Larry Summers, and Ron Bloom, a union negotiator. Since Bloom is the only one who doesn't have another steaming pile of national socialism objectives on his plate, he's really the guy who's going to run this show.