Woo hoo! The government's just giving away our money to poor decision-makers left and right. Okay, maybe it's not a bailout this time, but when you look at the terms of the loans, it's essentially that.
Freep.com wrote:WASHINGTON -- The Bush administration took a step Tuesday toward backing up to $50 billion in loans sought by the auto industry on the same day that House Speaker Nancy Pelosi said she'd push for approval of the aid package. ... Although $25 billion in loans to automakers for retooling costs was approved as part of last year's energy bill, automakers, suppliers and the UAW have sought $50 billion in recent months as the best chance to help the industry survive one of its toughest periods, squeezed by high energy prices, soaring costs for new technology and sickly balance sheets at Detroit automakers.
Automakers have suggested making $50 billion available over three years, with $25 billion in the first year, $15 billion in the second and $10 billion in the third. Companies would pay an interest rate close to 5%, rather than rates approaching 20% that commercial lenders would charge. The full $50 billion would cost the government $7.5 billion to launch.
hopefully this will help all the CEO's get bonuses...however, on the flipside, i think the UAW is killing the American car companies. most of my family works/worked as a UAW employee and would probably choke me for saying that, but at this point the UAW is doing more harm than good. I spent a few summers working on the line and while it wasnt easy work, it's not all that difficult either and the hourly salaries some of these people draw far exceed the level of work they do (but as i mentioned the CEO's are raping the companies too). having exposure to both domestic and foriegn OEM's it just seems that we're doing things wrong on so many levels. one example that was shared about a certain japanese OEM was that the factory workers voted down a pay raise because they new it would be bad for the company long term...no way that would ever happen here
Dan Lambskin wrote:hopefully this will help all the CEO's get bonuses...however, on the flipside, i think the UAW is killing the American car companies. most of my family works/worked as a UAW employee and would probably choke me for saying that, but at this point the UAW is doing more harm than good. I spent a few summers working on the line and while it wasnt easy work, it's not all that difficult either and the hourly salaries some of these people draw far exceed the level of work they do (but as i mentioned the CEO's are raping the companies too). having exposure to both domestic and foriegn OEM's it just seems that we're doing things wrong on so many levels. one example that was shared about a certain japanese OEM was that the factory workers voted down a pay raise because they new it would be bad for the company long term...no way that would ever happen here
Unions harming businesses by artificially inflating the price of labor through supply restrictions?
Freep.com wrote:WASHINGTON -- The Bush administration took a step Tuesday toward backing up to $50 billion in loans sought by the auto industry on the same day that House Speaker Nancy Pelosi said she'd push for approval of the aid package. ... Although $25 billion in loans to automakers for retooling costs was approved as part of last year's energy bill, automakers, suppliers and the UAW have sought $50 billion in recent months as the best chance to help the industry survive one of its toughest periods, squeezed by high energy prices, soaring costs for new technology and sickly balance sheets at Detroit automakers and the fact that they just plain suck at what they do.
Automakers have suggested making $50 billion available over three years, with $25 billion in the first year, $15 billion in the second and $10 billion in the third. Companies would pay an interest rate close to 5%, rather than rates approaching 20% that commercial lenders would charge. The full $50 billion would cost the government $7.5 billion to launch.
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by StlSluggers » Thu Sep 11, 2008 2:33 pm 
