Auto Bailout Fails!

Well, I read a bunch of articles regarding the failure of the bailout in the Senate and it all boils down to this: at a time when all Americans in the nation are making  sacrifices and tightening theirs belts the UAW says “ Not Us “! In other words they expect everyone else to suffer to the exclusion of their union.

Well, we all know where this is headed. The old hunters saying comes to mind immediately, ” a bird in the hand is worth two in the bush“.  Rather than take a slight pay cut and keep the industry above water they are willing to see the whole industry sink.

The only life line left at this moment is the White House, yes the Bush administration has not closed shop yet.  The Bush administration is against helping them and rightfully so ( odd I should say that ) because if they go that route then the auto industry would get a loan with few if any requirements.

Currently U.S. non-union workers of  foreign automakers  make about $3 to $4 less an hour than U.S. union automakers and they seem content.  The UAW has not said a word so far.

So, there it is! The whole bailout is falling apart because the UAW does not want to make any sacrifices.  They expect every body else to sacrifice except them.

I could see the picture now. The Big Three go under and U.S. based foreign car makers fill the vacuum. I kind of feel sorry for the union workers seeing how their union shafted them and in this economy. I guess there are going to be a lot of unemployed union automakers.

In the words of Keith Fitz-Gerald, Investment Director Money Morning.:

Demand for cars won’t fall off because the Big Three go under anymore than folks would stop buying beer if Annheuser-Busch Cos. Inc. (the maker of Budweiser that’s now Annheuser-Busch InBev NV) were to collapse and disappear.
What’s far more likely to happen is that Japan’s Honda Motor Co. (ADR: HMC) and Toyota Motor Co. (ADR: TM), India’s Tata Motors Ltd. (ADR: TTM), Germany’s Daimler AG (DAI) and Bayerische Motoren Werke AGChery Automobile Co. Ltd. and Geely Automobile Holdings Ltd., and other companies from around the world will happily fill the void .

Just to put some perspective on the matter the average auto worker gets about $28.00 an hour.  A 40 hour week works out to $1,120.00.

Tags: Foreign Automakers, Keith Fitz-Gerald, non-union workers, The Big Three, UAW