Thursday, December 11, 2008
Auto Bailout Marches On
....but it looks like it may get some resistance in the Senate--thank goodness. Frequent contributor Tom de Plume surmises that the Auto Workers Union is simply trying to keep the companies alive long enough to get a fully Dem Congress and Administration, pass card check legislation, then move ahead in unionizing the competitors plants in the South--a strategy of RAISING the other guys prices to make Detroit more competitive. Sounds like a long-shot, but a very interesting strategic gambit if true.
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4 comments:
Nobody is addressing the lowest gas prices in 8 years. The Big 3 should announce a huge sale on SUVs (using bail-out money for rebates), as these vehicles bring the real profit margin to the companies. SUVs are the only vehicles where teh Big 3 have any type of market advantage. Sell-off the excess inventory of SUVs, then retool, retrench, whatever, and develop a new product. My Expedition and I have never been happier.
The party is over. The three drunks standing next to the empty punch bowl have overstayed their welcome. Two have already called for a ride home (retained bankruptcy lawyers). People should be more worried they are taking for granted the surviving foreign players aren't now in as much trouble. They all share the same vendors, dealer financing and bank leasing partners. Fasten your seat belts, close your eyes and take a deep breath, here comes the airbag.
Gigs--I'm afraid you're right
Nicely done Gigs
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