The Big 3 CEO’s drove their company’s best hybrids to Washington D.C. for more bailout talks today.
Obviously this ploy was a PR move. They know it, we know it, and even the media admits it. Yet, it’s still working because the media is covering the event with full vigor. GM is making the most out of it by using the platform as an advertisement for the not yet released Chevy Volt. (See? I even mentioned the name.)
So what do I think? Good move on their part.
What do I think of the bailout? That’s more difficult. I’m a Capitalist at heart and believe the market should decide who, or what, survives, but this has me struggling.
I was against the bailout of Chrysler, but this is vastly different. You ask why? Simple, nearly 10% of US jobs have ties to the domestic auto industry. I don’t think our country can stand a hit of that magnitude.
If you’ve been reading my blogs you know where I’m going to lay most of the blame, with the unions. It’s not 100% their fault, however, much of it lies with them and the CEO’s that agreed to the union’s crazy, far reaching demands.
With pensions and benefits it costs domestic automakers almost 3 times the cost it does foreign automakers in labor to build cars. That’s plant to plant in the US, not US versus Japan plants. That’s horrible.
Here’s an idea that’s worked in the past and it worked well. The CEO’s could get together and declare all union contracts null and void. Then follow that by firing all union employees. If they want to work they can come back and sign new contracts without the union.
That’s just a thought. The CEO’s should have stronger backbones and stop caving in. The unions will take care of their own. At least that what they say they’ll do.