Pelosi Wants The Taxpayers To Fork Over $25 Billion For GM Health Care Costs AND Obama Advisers Were Reluctant To Insist The UAW Make Any More Concessions On Health Care Or Retiree Benefits
I told you The Unions Expect Payback For Getting Obama Elected, and The UAW Wants Additional $25 Billion For Health Care Obligations, so I guess it should come as no surprise that the Democrats Plot Detroit Rescue
To forestall a voter backlash, Obama aides and Ms. Pelosi separately made clear they intend to impose significant conditions on federal aid. Auto makers would have to offer the government equity stakes or warrants, one Obama adviser said, and would have to accept the same rules on executive compensation that financial-service companies have swallowed with the Wall Street rescue.
Auto makers receiving aid would also have to agree to strict rules aimed at building “green and clean” automobiles, one Obama adviser said.
Obama advisers are also examining union work rules that could be put on the bargaining table, although Obama advisers were reluctant to insist the UAW make any more concessions on health care or retiree benefits.
Why, because they pay so much now? (sarcasm)
Read these articles to give you an idea of the trainwreck we are just about to witness:
GM to close 4 plants, focus on small cars
Now the world’s largest automaker by sales needs to figure out how it can sell enough cars to make money in a shrinking U.S. market and stay ahead of the bill collectors.
Lutz reports the market’s shift to fuel efficiency has led to better pricing on other GM cars, such as the economical Chevy Cobalt and HHR cross/utility vehicle. Both sell with “zero to minimal” incentives, which pushes up their sticker prices as much as $4,000.
However, outside of these cars, the profit picture remains dim.
November 11, 2008 - 09:55 PM on November 11th, 2008
[...] Auto makers would have to offer the government equity stakes or warrants, one Obama adviser said, and would have to accept the same rules on executive compensation that financial-service companies have swallowed with the Wall Street … More [...]