On Sun, 07 Dec 2008 18:07:45 -0500, Eisboch wrote:


I know you were addressing Tom, but I wanted to also respond.

I am not opposed to a bridge loan. I'd just like to see it tied to a
genuine requirement on the part of GM to change their ways. Otherwise,
the money is completely wasted. That's why I still think it should be
done with strong oversight, such as that in Chapter 11.

I think we are on the same page. GM clearly needs to get the message.
Hell, the board just gave Wagoner a vote of confidence. As I said, I'm
not concerned with GM near as much as I'm concerned with what GM's
failure could do to the rest of the economy. We need to get some
confidence back in the system. I think there are better ways than
Chapter 11, but I would accept a Chapter 11 solution. I just don't
think, at this moment, this economy could sustain a GM failure.



I don't point the finger of distrust or blame at management or the labor
union. I just think there are so many years of adversarial distrust
between them that they need an arbitrator to fairly and efficiently
reorganize the company.

There is still some of that, but they have come a long way since the
Japanese invasion. In the last contract, the union instituted a two tier
system, where new hires get paid less. If I'm not mistaken, labor costs
per vehicle a getting quite similar, especially since the foreign plants
are starting to have retirees.


One thing I don't get, and maybe one of you guys more familiar with
unions can explain.
As I understand it, the UAW represents workers at all three Detroit
automakers, meaning GM, Ford, and Chrysler.

I think it's more competent management than anything else. I'm not sure,
but I don't believe the UAW contracts with the different companies are
the same, though. They are similar, but not the same. I remember
reading somewhere, that Ford doesn't make any money manufacturing autos,
they make their money financing autos. If that's the case, GM sold 1/2
of GMAC to Cerebrus. That also may account for some of the differences.


Why is it that Ford has been more successful in lowering per unit costs,
while actively revamping their product line? The latest automotive
reviews rates the newer Ford products as being equal or in some cases
better than their Toyota and Honda counterparts, quality wise and Ford
is in the least amount of trouble financially. Does each auto
manufacturer negotiate different contracts with the UAW in terms of pay,
benefits and retirement packages?

See above, but don't take it to the bank. ;-)