UAW Paybacks with Government Motors and Chrysler
If you are wondering how Ford (the champions of responsibility, as they did not take the government bailout) will be able to weather this economic downturn, you might be depressed after reading this post. As you know, the bailouts were only going to last for a temporary amount of time with General Motors (Government Motors) and Chrysler. Now, it appears with Chrysler’s recent decision to declare Chapter 11 bankruptcy that there will be more control from the government, along with the United Auto Workers (UAW) union. What does the UAW have to do with both GM and Chrysler? Well, the answer is clear.
The UAW will now own 55 percent of Chrysler, while they will own 50 percent of GM. The government will be giving control to the union thugs, who have helped drive the “Big 3″ into financial problems. The chief financing of a GM and Chrysler vehicle will now be handled by the government. If you think for a second that the financial problems were solely caused by lack of innovation and the product itself, you are wrongly mistaken.
Since the UAW union thugs have taken over, there has been a rise in plants going out of business. Just look at Detroit, once America’s crown jewel of the auto industry. When I was visiting Detroit on business last summer, many plants have suspended operations and there was a sign of a bad economy. Many of the businesses who helped supply GM, Ford, and Chrysler with parts, etc. were closing up shop or suffering horribly under the environment. It was really sad seeing the impact that many of these unions, because this area used to be booming with business.
Now, the UAW will also start pushing their coercion on Ford. Since Ford did not accept the bailouts, the UAW will be driving competition and Ford could be the one hurt in this deal, as there will be immense competition between the UAW Motors (GM and Chrysler). Hopefully, more people will begin buying Ford vehicles in retaliation to the government interfering with competition.
I believe Jim Wooten of the Atlanta Journal-Constitution said it best when he said, “I don’t want government to succeed in nationalizing American industry. I will not buy a car from the government and I won’t invest in banks that its agents control.”
Posted on May 1, 2009, in Economy, National Politics and tagged Bailouts, Chrysler, GM, UAW. Bookmark the permalink. 1 Comment.
Have you noticed that GM was too big to fail, that it was too big to go bankrupt prior to the bailouts? The same bailouts that let the company last long enough for the unions to get a controlling interest? Before the bailouts, the big worry was that the bankruptcy would allow GM to cancel the union contracts. Now, I don’t see that happening.
How did the union get enough stock to take control, anyway? Who had it before them and where did they get the money to buy it? Why didn’t they do that before?
The bail out and the bankruptcy is all a scam. Now Obama is trying to influence the bankruptcy court by badmouthing the bond holders. The ones that BY LAW are to be the first in line to get paid. They wouldn’t cave to Obama and now he pillories them in the press like he did to AIG and Congress did to the oil companies.
The sad part is that Biden is worse…. 2012 can’t get here fast enough…..