From Mitt Romney:
GM’s new proposal, clearly produced under government duress, is worse than virtually any of the alternatives. It would give GM to the UAW and the U.S. government and make taxpayers pick up the bills. Of course, billions more from government would be drawn down right away. But the UAW could also depend on the Obama administration to keep up the subsidy for years and years to come. Government and Union co-ownership: It would be as ineffective as it is un-American.
The right course for GM is an out-of-court restructuring or bankruptcy. Either would keep the company in business and rid it of burdensome costs, work rules and obligations. The government could backstop the post-restructuring debt, helping the company get on its feet. GM must not fail: If its costs are brought in line with its competition, it can ultimately thrive and grow jobs. What is proposed is even worse than bankruptcy—it would make GM the living dead.
I was never a big Romney fan, but he’s looking pretty damned good right now.
I voted for Mitt in the California primaries. A futile gesture to be sure, but Arnie taught us never to vote with the supposed majority.
I voted for him in the primaries. He was the only one worth voting for, since Fred wasn’t really running.
Of course, it’s easy to talk when you’re not the guy in charge. Obama sure talked a lot, and look how predictive that was. What are Mitt’s hands up to these days?
One thing I do like is that I think Mitt’s keeping in the public eye because he wants a strong record to run against Obama on in 2012. At least, I hope so.
Christ o’ Lordy it’s going to be a long four years …
The right course for GM is an out-of-court restructuring or bankruptcy. Either would keep the company in business and rid it of burdensome costs, work rules and obligations.
That would mean restructuring of UAW agreement, in which threat of a strike is laughable since the company would just fold. So instead of force what needs to be done, Obama is just handing over GM to the UAW. Without a Hillary plan proviso making it illegal to purchase anything other than GM product, I don’t see GM winning new car buyers for some time to come. UAW will win the battle, but GM will ultimately lose out, and not too long down the road.
This (and what’s going on at Chrysler) is enough to make me swear that if I ever buy an American car again, it will be a Ford. What scares me is what’s going to happen to Ford the next time they have to sit down at the table with the UAW. The UAW won’t just be representing Ford’s workforce; they will be representing Ford’s direct competitor. How is this not an enormous conflict of interest?
Thanks Nemo… I was wondering why Ford was given a pass (unlike many banks). What you said makes sense. The UAW foot is far enough in the door.