Thursday, November 13, 2008

Automakers looking for demoncrat bailout...

The problem I have is that the automakers are inefficient, bloated, bureaucratic corporations. In spite of that, it would certainly be bad for them to go out of business. I'm in favor of them getting help, but the companies and the unions need to give a little as well.

The unions have coerced the companies into wages and benefits that are unreasonable - they need to give a little of that excess back, they need to do their part. $2500+ of the price of each car they make is due to union benefits. No wonder the Big Three can't compete with imports!There is no justification for paying a forklift driver over $30/hour... I would suggest a 20% reduction in pay and benefits for every employee as part of any bailout plan. That would just be fair.

Michigan and other states that have auto plants can give a little, too, like a 20% reduction in property and business taxes.

The companies need to cut the fat and refocus their efforts toward making cars that are competitive with imports in design and economy. They should also be making cars with fuel options to include gasoline, ethanol, E85 and natural gas. With existing technology it can be done and switching can be automatic. Imagine a car with a 20 gallon fuel tank and natural gas system - how about a 800 -1000 range between fill-ups!

The rest of the country can help. As I said in my last post, we Americans should be buying American made cars. THAT would be patriotic - not paying higher taxes, as our demoncrat VP-elect suggested.

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