We talked about the proposal to use some of the 700-Billion Dollar "save-the-economy" fund to help the Big Three Automakers in Detroit during Friday's FTR. I wondered aloud if the lobbyists for the Alabama auto manufacturers (Hyundai, Honda, Mercedes etc) were lobbying against the use of tax dollars to help their competitors up North. Now comes comment from Republican Alabama Senator Richard Shelby that he opposes it, saying the American Auto Industry is a "dinosaur" and a federal bailout would only postpone its demise. Oddly, The AP story I read didn't mention the state's foreign auto industry. There is no repeat of this week's FTR scheduled, but it will be online by Monday and you can watch it in the APT VideoRoom.
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Nov 16, 2008
The Auto Bailout
We talked about the proposal to use some of the 700-Billion Dollar "save-the-economy" fund to help the Big Three Automakers in Detroit during Friday's FTR. I wondered aloud if the lobbyists for the Alabama auto manufacturers (Hyundai, Honda, Mercedes etc) were lobbying against the use of tax dollars to help their competitors up North. Now comes comment from Republican Alabama Senator Richard Shelby that he opposes it, saying the American Auto Industry is a "dinosaur" and a federal bailout would only postpone its demise. Oddly, The AP story I read didn't mention the state's foreign auto industry. There is no repeat of this week's FTR scheduled, but it will be online by Monday and you can watch it in the APT VideoRoom.
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Earlier this year when it was becoming apparent that GM was in great difficulty there was a strike at American Axle. In support of this strike, I and many others believe, the UAW called a local strike at one of the few well running plants. The plant located in Lansing MI. was producing the Buick Enclave, one of the bright spots in the GM line up. If memory serves me there was also a strike at a plant producing the Chevy Malibu also at the time a bright spot.
ReplyDeletePoint of mentioning this is when the head of the UAW says the GM problem has to do with the economy there is room for further questioning. Again relying on memory I also believe there was an infusion of GM cash to American Axle, not to mention the huge amounts blown at Delphi to keep the UAW happy.
state's foreign auto industry.
ReplyDeleteIf the "state" is still in America that would make the "state's" auto makers American, they pay in American dollars, hire Americans,pay taxes to American governments. So where does the foreign thing come in.
Yes, they are American (and Alabamian) plants, but at the end of the day profits go to their headquarters in whichever country that may be. Just as a GE plant in Mexico contributes to the Mexican economy, but GE gets the profits.
ReplyDeleteIn the case of the auto-makers' bailout, it's a relief to have a national issue that is so straightforward: American cars tend to suck therefore people are not buying them. If GM and Ford don't want to go out of business, they should start making decent cars. To bail them out would be to reward their terrible manufacturing standards.
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