Hanging from a Union Tree
Bail them out? Who is going to buy cars! And while they go bankrupt union workers get paid way over market value. Sorry to say Unions are a thing of the past and will force other industries down the toilet like airlines as well. It’s a form of cancer that can be cured but has to be ripped out of the body. The problem to be fixed isn’t one company at a time – it is systemic and the entire industry needs to be revamped.
The bailout buzz around the big automakers especially GM is finally coming to a head. Even if the companies are bailed out the results will be the same. Dying on a vine or in this case already a carcass hanging from one and Unions are a big part of the lynching.
If the companies were bailed out I will bet my life that people won’t buy enough cars to keep them afloat anyway. Yes the industry touches 1 in 5 jobs in America but it’s a dinosaur industry compared to the rest of the world. Strapped with Unions and debt and the fact that they have so many cars in the system right now that aren’t selling their dealers can’t absorb more and stay in business as well. This means that automakers even if they stay in business can’t push cars into a consumption economy that can’t or won’t buy them. So they keep making more cars and staying afloat but in the end the body can’t be resuscitated while workers keep getting paid and the cars don’t sell – even to the dealerships.
Here’s a solution that has merit I believe. If you want to save the industry put an investment pool together and force the merger of the automakers. Take all brands that aren’t selling that have been rolled up over the past few decades and chop them up and sell them off. Immediately seek buyers of the businesses before they go out of business anyway. You want to save jobs then Unions have to dismantled – it is an outdated way to force big companies like airlines too to pay huge sums of guaranteed money to its workers. This is insane given that those wages are helping force the businesses into bankruptcy and possible collapse.
By consolidating, chopping up divisions, co-oping manufacturing capacity and selling brands the automakers may one day still be around to live another day. Do this not and they will go bankrupt (again) and followed quickly by the airlines and other Union strapped companies. We want to save employment figures and promote political wins but this is business and the business world would not care about brownie points. If we use the fund described above and bring in superior management and turnaround specialists for the entire industry not just a company at a time then I bet you will see this industry whipped into shape and fast.
Bail them out? Who is going to buy cars! And while they go bankrupt union workers get paid way over market value. Sorry to say Unions are a thing of the past and will force other industries down the toilet like airlines as well. It’s a form of cancer that can be cured but has to be ripped out of the body. The problem to be fixed isn’t one company at a time – it is systemic and the entire industry needs to be revamped.
The bailout buzz around the big automakers especially GM is finally coming to a head. Even if the companies are bailed out the results will be the same. Dying on a vine or in this case already a carcass hanging from one and Unions are a big part of the lynching.
If the companies were bailed out I will bet my life that people won’t buy enough cars to keep them afloat anyway. Yes the industry touches 1 in 5 jobs in America but it’s a dinosaur industry compared to the rest of the world. Strapped with Unions and debt and the fact that they have so many cars in the system right now that aren’t selling their dealers can’t absorb more and stay in business as well. This means that automakers even if they stay in business can’t push cars into a consumption economy that can’t or won’t buy them. So they keep making more cars and staying afloat but in the end the body can’t be resuscitated while workers keep getting paid and the cars don’t sell – even to the dealerships.
Here’s a solution that has merit I believe. If you want to save the industry put an investment pool together and force the merger of the automakers. Take all brands that aren’t selling that have been rolled up over the past few decades and chop them up and sell them off. Immediately seek buyers of the businesses before they go out of business anyway. You want to save jobs then Unions have to dismantled – it is an outdated way to force big companies like airlines too to pay huge sums of guaranteed money to its workers. This is insane given that those wages are helping force the businesses into bankruptcy and possible collapse.
By consolidating, chopping up divisions, co-oping manufacturing capacity and selling brands the automakers may one day still be around to live another day. Do this not and they will go bankrupt (again) and followed quickly by the airlines and other Union strapped companies. We want to save employment figures and promote political wins but this is business and the business world would not care about brownie points. If we use the fund described above and bring in superior management and turnaround specialists for the entire industry not just a company at a time then I bet you will see this industry whipped into shape and fast.
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