The big 3’s pension/legacy expenses aren’t limited to the union workers. I think I’ve posted this link before – it’s to a WSJ article from 2006 that showed that the big underfunding of pensions isn’t for the workers – it’s for the exec’s pensions.
I’d also like to point out that whether there is a bailout or not – jobs will be lost. A lot of them. With a bailout, they’ll still need to trim the workforce, shut some of the factory lines… that means auto workers and parts makers, etc will all be losing their jobs in large numbers. So throwing taxpayer money at it won’t save the industry – jobs are going to be lost.
Third point. Chrysler. We are we considering giving money to a company that is owned by a private equity company. They bought it last year. Theoretically, they knew what they bought. It’s not worth that much, relative to the other two – but there they are – with their hands out – looking for tax dollars. Cerberus has conceded they’d give up their profits if the bailout allows them to sell off Chrysler. Gee… nice of them. Why should they get a profit if they *need* government bailouts.
I watched a lot of the testimony yesterday and today. One of the representatives, don’t remember which, had a telling point – he held up pictures of GM cars – announced their model name and where they were built – Canada, Mexico, Europe, etc.
