Posted by: rotenochsen | December 19, 2008


Thursday, December 18, 2008


Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

Senator Stabenow (D-MI) has said repeatedly that Senate Republicans killed the auto industry bailout proposal by “politicizing” the issue. In other words, she ascribes to Senate Republicans no concern for workers or for the economy, only a desire to “pierce the heart” of organized labor. The truth is that she and other Democrats have been bought and paid for over the years by the UAW and other unions and it is Democrats who lacks the courage to tell the unions that the party’s over… there are no more free lunches.

It is the United Auto Workers who have made U.S. auto makers non-competitive. If General Motors sells 9.7 million cars in FY 2008 and loses $38.7 billion, while Toyota sells 9.7 million cars in that same year and earns $17.1 billion, how does that compute? What’s the difference? The difference is in the labor segment of the cost equation. It costs General Motors $73 per hour for each assembly line worker(salary and benefits), while Toyota’s labor costs are just $44.20 per hour. Is there anyone outside the union halls who fails to understand that? It’s simple arithmetic. SOURCE: PAUL HOLLRAH

COINCIDENTALLY THE 1st Amendment to the Constitution provides for freedom of the press, giving journalists the right to print and broadcast what they want without fear of government censorship. However, the moral contract under which We the People confer that right contains a bit of small print… which says that the right extends only to those who have an unswerving dedication to truth. So the question arises, does the 1st Amendment give the press the right to purposely misinform… any more than it gives individuals the right to yell “Fire!” in a crowded movie theater? That cannot be what the Founding Fathers had in mind.

To add to the public confusion about the Big 3 “bail out” proposals, the Media has posited that we cannot afford to let the Detroit auto makers go bankrupt, because people will not buy cars from a bankrupt industry. They also exaggerate the number of people who will loose jobs in associated support industries(auto parts,etc.). Failing to mention that these same people supply the non-union auto makers in the Southern States.

And if that is not enough to convince the UAW to redo their benefit structure to help make Detroit competitive. Consider this, Mexico and India have increased their auto making capability.
For example, India’s Pune city has a large pool of skilled, industrious, readily available manpower, and no serious shortage of utilities. This made it an ideal location for manufacturing units of all manners. The engineering industry first came and established itself here. Next, it was the IT industry that made great strides. And now, with several international car makers setting up shop here, the city is gearing up for its emergence as a global hub for the auto industry.

Realistically speaking, the Pune, India auto story began in the early 60s when Tata Motors and Bajaj Auto were amongst the first to set up manufacturing plants on the outskirts of the city. Almost 30 years later, a series of events took place that augured well for industrial growth in general and the auto industry in particular.
The outcome: global majors Volkswagen, General Motors, DaimlerChrysler, Fiat plus domestic leaders such as Tata Motors, Mahindra and Mahindra and Bajaj Auto, which already has modern plant to produce the Pulsar here, announced plans to set up greenfield projects and make big-ticket investments in the region. Naturally, the existing auto component industry also got a big boost in their business also.

GM, which already has a plant at Halol, is investing Rs 1,400 crore at Talegaon, and will look at global sourcing from India, scouted 12 States before firming up on this one location. The plant, that has an installed capacity of 1,40,000 units, will produce a small car – a variant of the Chevrolet Spark. It will go into trial production by April 2008. Zource: Business Line For Hindu Business

If the truth were told. The bail out would only delay the inevitable bankruptcy of an industry that has let the UAW lead them by the nose for too many years.As a result the Big 3 have become non-competitive with the foreign companies making cars and trucks right here in the USA!


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