Auto Industry Bailout
JoeUser Forums
It’s a good thing that the Democrats did not get saccharine over the auto industry’s tin cup presentation lacking hard core specifics, and instead are requiring that the Big 3 return with realistic restructuring. The foremost embarrassment is the $24 an hour labor discrepancy between the UAW and the union free foreign manufacturers. This is easily solved by the government takeover of the pensions with perhaps some modest adjustments more in line with other company pensions; in addition, if Obama is really serious, he should offer the union to opt for federal employee health insurance placing more of the burden on the workers rather than the auto industry. Other structural items should be:
1) The Big Three to share one private jet and sell off the other two.
2) Until the bridge loan is paid off the CEOs are to work for a dollar a year rate, after which their total salaries are based on 0.01% of annual profits with no stock options.
3) Limit production of big luxury cars/SUVs to 15% and non-commercial and non-agricultural light pickup trucks to 10%.
4) Eliminate the Hummer and other truck chassis vehicles unless proven for commercial use.
5) Upgrade all vehicles to no-nonsense 100,000 mile warranties.
6) Work toward merging brand separate dealerships under parental roof.
The government should counteroffer:
1) A more realistic $50bl bridge loan extracted from Wall Street bailout fund.
2) 1% VAT tax on non-commercial V8 engines—foreign and domestic—.05% on V6 engines.
3) 35 mile CAFE on passenger or non-commercial fleets by 2012.
4) No more plant closings and layoffs.
5) $10bl proportionated cash infusion to the Big Three credit companies.
6) UAW monthly productivity report to the Dept of Labor.
7) Wage adjustments in return for government healthcare and pensions.
8) Quarterly company accountant reports to Congress
9) Quarterly research and expenditure progress report on the “green” original loan.
Stardock Forums
PolMach Forums
