Plan B For Automakers, Do Nothing

Executives from the Big 3 automakers are in Washington making their case for $34 billion dollars (up from $25 billion a week ago) to ‘bail’ them out.

Their plan amounts to things they should have done years ago, but still amount to nothing more than duct tape over a gaping hole in the hull of their ship. Not one of them mentioned bankruptcy or getting out from under their current union contracts. That’s where the hole is and that’s why any amount of money now is just duct tape. It will also be nationalizing an industry doomed to failure if it doesn’t cleanse itself of the unnecessary union overhead that a bankruptcy affords them. All for the express purpose of propping up a labor union. I’m sorry, I believe our economy comes before a labor union.

GM’s COO Fritz Henderson is only fooling himself when he says that there is no Plan B. Of course there is. In this case, when you have an operation that ‘can’t fund’ itself, bankruptcy is always an option.

“There isn’t a Plan B,” said GM Chief Operating Officer Fritz Henderson. “Absent support, frankly, the company just can’t fund its operations.”

These auto execs seem unwilling to cut the umbilical cord to the UAW. That leaves the only other option, doing nothing. Why? Because Nancy Pelosi will get them the money they want one way or the other, making the automakers’ appearance this week before congress the obligatory dog and pony show. Pelosi is out to protect and preserve the UAW, not the company that employs them, and these execs know it.

“I believe that an intervention will happen,” Pelosi said at a briefing in Washington. “Everybody is disadvantaged by bankruptcy, including our economy, so that’s not an option.”

Pelosi said Congress will either approve new loans for the auto industry or the Bush administration will provide funding through the $700 billion financial-markets rescue plan approved by Congress last month.

Unfortunately for us taxpayers, and fortunately for the UAW, they will get their (your) money. Don’t you just love it when free enterprise capitalism is interfered with by the government? What makes it worse in this case is that the motivation is only to help big labor, Democrats’ special interest group.

related links: Big Three survival bailout requests rise to $34B | Pelosi Says Bankruptcy by Automakers ‘Not an Option’

0 thoughts on “Plan B For Automakers, Do Nothing”

  1. If the automakers are to have a chance of profitability, it is the UAW that needs to go, not the workers. If the Big 3 can’t figure out how to become profitable with them, then they need to quit and/or start over. A bankruptcy gets rid of the union, not the workers, unless they choose to not work any more. There’s no point in operating a business if all it does is lose money. If it fails, it fails. That’s exactly what risk taking and free enterprise, free market capitalism is all about. The market decides who wins and who loses. Not the stink’n government.

    It isn’t about unions Derek. Unions don’t make anything. They never have. They drain the capital from the company they ‘organize.’

    If the union goes, nobody loses. If the business goes, everyone loses.

  2. If the automakers want to survive, they need to cut the UAW loose, sever their relationship, via bankruptcy of course. It might be an imperfect analogy, but that’s what I mean.

    Maybe remove the leeches would be a better analogy.

    In either case, they seem perfectly willing to carry the UAW along, since they apparently are not even considering bankruptcy as an option.

  3. I think they are saying there is “no” other option because they think that if they sound like it has been analyzed from all angles with no other solution, the lefty illuminati will believe them and pass it..

Leave a Reply

Your email address will not be published. Required fields are marked *