Auto bailout dies in Senate after compromise talks fail.
If you read my previous post on the auto industry bailout, you know I’m a die-hard Detroit fan. I only own American cars and forever will. (I have one of each of the Big 3.) Further, I think it would be a huge blow to the national economy to let so many jobs disappear.
However, I have had time to refine my view. I have always maintained that the unions have over-leveraged too sweet a deal for themselves. They have done so to the point of bringing the Big 3 to their knees. There, I said it.
Today it was announced that the bailout has died in the Senate. In truth, it was mostly just a sweet and big loan, not a gift like the financial giants got. This could be a good thing (in a relative way). The only way a domestic auto industry could succeed would be to have pay and benefits commensurate with those of foreign manufacturers who have plants in the US. That was a central requriement of the proposal and the UAW would not budge (enough).
Clearly, the UAW leadership is only looking out for themselves. I would think that jobs for the workers that are on par with the Japanese manufacturers would be way better than nothing. American workers for Japanese and German auto companies seem universally happy and content with their lots.
Q: How would the same be unacceptable for their Big 3 counterparts? A: far less pay for the UAW honchos.
Maybe it’s time for a new auto industry landscape in this country. Perhaps the Big 3 will fold and the Japanese and Germans will get assets and workers at a fire sale. At the very least, the foreign manufacturers will be left with more marketshare. This will be interesting.
