GM Is Becoming a Royal Debacle

This article is by Jason Edwards

No wonder the king's mediation of 40 years of stalemated labor and business issues in the auto sector isn't going so well. There's a reason royal discretion has long been outmoded as a way to run an economy: Things just work better if a realm's subjects are left to resolve their own disputes and interests through the impersonal mechanism of the markets and the law says Jenkins in the WSJ today. The president should have never took over GM or Chrysler (GM is worst out of the 2). Let them go into bankruptcy! I don't know what else needs to happen for the president to realize that the market and consumers decide what kind of cars they want not the government. This is not the job of the president. GM is just drowning faster and faster while the government stands by their side attempting to help (key word attempting). Go into chapter 11, restructure, and when the market returns so will the auto industry. The problem is that they are not making a profit (GM was number 6 in Forbes 500s). People are still buying cars. The problem is that they are paying billions in health care to retirees (a reason we need to reform health care) and the UAW wages are the highest out all the automakers. In chapter 11 all this can be fixed. There is no need for government intervention.

http://online.wsj.com/article/SB124035637935940943.html

Please Just Let the Automakers Go Into Bankruptcy

This article is written by Jason Edwards

The government is set to give another $500 million to Chrysler and another $5 billion to GM. This needs to stop now! There comes a point when you just need to say enough is enough. These companies are never going to get their act together because they know the government will just keep dishing out the money. Because the government keeps giving them money they have no motivation to change. Ford on the other hand is doing all that it can to change its companies policies because they know they have nothing to fall back on (in the long run Ford will be a viable company I believe). This is exactly what the Tea Parties were about; throwing money at a bad situation. It is not helping the auto companies at all. Let them go into chapter 11 and restructure. In the short term it will be hard to watch employees losing their jobs (even though with government money employees are still losing their jobs) but in the long run it will make for a more viable auto company.

http://news.yahoo.com/s/afp/20090421/bs_afp/uscompanyautopublicaidgmchrysler_20090421173310

Bankruptcy for GM on the Horizon

This article is written by Jason Edwards

GM doesn't seem to be able to get its act together. As I said in an earlier post they need to work with the UAW. The union is killing our American automakers. In an article on FOX news Horace Cooper says there are three things that could turn around the auto industry. Adopt a 3 Year Moratorium on UAW union representation and immediately suspend the existing UAW contract, let the consumer decided what type of products the automakers produce (NO BODY WANTS THOSE UGLY ENVIRONMENTAL CARS!), lower the cost of service and maintenance instead of having warranties backed by the government. I agree with every single one of this ideas. I am a liberal but I 100% disagreed with the government taking over the auto industry. There is a reason we have chapter 11 bankruptcy. We have seen many companies come out leaner and meaner after bankruptcy (K-Mart for example). I hope they do go into bankruptcy so only the top brands stay, re-do the contracts with the UAW, and create products consumers want to buy at reasonable price.

http://www.msnbc.msn.com/id/30264733/
http://foxforum.blogs.foxnews.com/2009/04/16/cooper_general_motors/

GM and Chrysler need to get their act together

This article is by Jason Edwards

In a very short period a time this country could possible have only one American automaker (Ford). Ford didn't take any money from the government, it worked with its unions to bring down wages, it is creating cars that people want to buy, and it brought in someone that is an outsider to the auto world. Unions have many positives (higher wages and better benefits) but they also have a lot of negatives (high wages and legacy benefits), which are shown recently with the downfall of the American automakers. I believe that unions are a main cause for the implosion of the American automaker. If unions don't step back and look at the bigger picture we will see the end of the American automaker. I believe that GM, Ford, and Chrysler can come out on top, but only if they change their business models, bring down wages (from $75 to $45 dollars an hour like Japanese automakers), and create cars that people want to buy. Now we have seen Ford do this. When will GM and Chrysler get theie act together? I hope it is before their time is up (60 days for Gm and 30 for Chrysler). If they don't then the government should back away and let them fail.

http://www.foxbusiness.com/story/markets/industries/transportation/fiat-threatens-walk-away-chrysler-report/

My note: It's not often that I agree with Jason Edwards, but this is article is 100% accurate.