With sincere apologies to my AR friends in Michigan, I am one of those who thinks it would be best for America if congress were to let the U.S. automakers either swim, float or drown, and let them do it all by themselves.
If the bankruptcy laws are as I understand them, by being forced into bankruptcy the exculpatory contracts between the companies and their executives, unions, and on and on could be reviewed and renegotiated. And those reviews and renegotiations would be in front of the court and require the court's approval.
Executives and unions are at the base of the financial problems. It isn't the owners, who are the stockholders, and no one has spent anytime looking after them.
For a CEO to earn, say, $15 million a year plus other expensive benefits and bonuses and it was under his administration and direction that the company cratered, is just unacceptable to reasonable people.
Here's the chance to stop it. In the meantime, I suggest that the CEOs sell the corporate jets and learn to travel like the rest of us ---coach!
Having grown up in Highland Park, I can say that your realm of right to work over union membership will have this opinion. And now that I am living in exile in MA, I see the union people that seem to be blind to the economics of how business survives. Even if the salaries of CEOs are reduced to $1 as they suggest, their decisions still need to be scrutinized. And maybe the concessions they had to give the unions will be uncovered more completely. Seems like a win win.
When these birds fly into Washington for hearings, and they come in their $6,000 suits in private jet, why is there any reason to believe they even understand what they've done wrong much less expect them to show repentance.
Unions seem to have outlived their usefullness. Many, many CEOs have to. Both were fueled by greed.
Thanks for your comments, Heath. You did a good job.
When union workers are makng $30 or more per hour on the line, with no higher education, and their execs are pulling down millions--I say no bailout.
Bill - I must agree with you on this. If I had any faith that an industry which has ran intself into near extinction, while exhibiting failure to innovate, and evolve with the times, would do anything dramatically different with the running of their business, my thoughts would likely be different. BUT when those CEOs jumped on private jets to get to the Washington hearings, they lost me. They couldn't even manage to airpool, or downgrade to first class. They simply don't get it!
Bill,
I agree wholeheartedly with you.....even Warren Buffet doesn't fly in a private jet and he owns his own private jet company!
Jo
Erica, Myrl and Jo--
Thanks for your thoughts. They're right on the money!
Bill
Bill C, As I understand it a Chapter 11 filing could be "managed" so as to arrive at the desired result: The return to profitibility of the Big 3.
As for those who say no one would buy their cars during the bankruptcy proceedings because of fears of not having warrantyt protection, private "warranty" insurance could be part of the
"structure."
Bill Roberts
Hard call, but true. From the ashes will rise a new life period. That is what this country was founded on.
Existing warranties will survive because the bankruptcy judge would not forgive them.
New waarranties and all other contracts made during bankruptcy automatically survive the bankruptcy and can't be denied.