US Auto Industry?

so what happens to Dick the worker that worked 20-30yrs and is retired. Does he get on wellfare, WTF are Pensions for, and how does the company not have the money set aside.

 

the gov't/taxpayers pay the pension: http://www.pbgc.gov/

 

That would be a problem for the the two sides who made the deals in the first place, the unions and management.
Dick the worker can find a way to get the money he was promised in a private, in-house business arrangement (such as a lawsuit) or he can do what a lot of other retirees do these days, go back to work. The rest of us never volunteered to provide for him for life.
I've been working for 45 years, put my own money into 401ks, and I don't expect to ever be able to retire.
As long as Dick the worker gets his pension benefits, I doubt he'll lose a minute of sleep over my situation.

 

Hmmm... free pie, I like the way you think

My poor attempt at a point was that the downstream affects of the auto companies going out of business will be much farther reaching than most think, not just the autoworkers and suppliers workers but way down the line. That said, I'm with you on this. I say no bailouts at all for anybody, let the market decide who survives and who dies, but people don't want to suffer a few (5?) years of poor economic conditions because they won't be able to buy their flatscreen/jacuzzi/snowmobile/whatever. We're going to have to take our medicine and I fear that putting it off will be far, far worse than just taking it now. But, I'm just a tax payer, I don't get a vote

 

I live in the heart of this and either way, there will be massive job loses. There has to be with a bail out or just letting them fail. I travel alot for business and it is a fact that when you leave the Michigan Ohio area that most of the cars, etc are imports. Well at least most are still built here. The big three have just lost the publics confidence.

 

Why not find a halfway point and let the government and automakers work out a restructured bankruptcy arrangement?
Shed the pension obligations and return to a reasonable, workable business model that will return a profit and pay people a reasonable wage and benefits that are in line with their skills and production.
Some jobs will be lost, but not all.
Handing them money or even lending it with no demand to change the poor business practices that created the mess will just mean the failure is put off for a while.

 

This crap part of the problem?

http://www.marketwatch.com/news/story/Refusing-Muzzled-LA-Auto-Show/story.aspx?guid={C4850401-CB16-4257-995B-77915949A7C7}

 

I know cars/trucks have been getting 15-25 mpg for 20yrs. So why havent standards improved? big oil+politics=,me fked

 

More and more HP, and size

 

LOL. We are not to question why, we are just to do and die. Take our money and give it away, we'll try to eat another day. (snakeshit) I mean Shakespeare.

On a side note, one of our local Chevy dealers (Classic Chev) is buying the assets of Heard Chevy in Plant City Fla. The Durant boys don't seem to be afraid to spend money, and since they're the number one dealer in the US I guess they pretty well know what they're doing.

 

Big 3 cost per labor hour including benefits = $78

Non-union US automakers cost per labor hour including benefits = $48

Big 3 will never be able to sell enough cars/trucks with these cost to make a profit.

Ps: $78/hour = $162k per year per worker!

 

Really?

Maybe it's because people didn't give a shit and bought the gas guzzling cars and they did what the market demanded.

I hope the automakers go under so they can come back without unions. Then the union worker who does a $15/hr job can get paid $15/hr.

 

I've always wondered why the guy building the car makes $50/hr with great benefits when the guy working at the dealership fixing his fuckups doing warranty work makes $10/hr with no benefits?

 

all i know is i will never, ever buy anything from any company that takes corporate welfare. Ever.

 

That "bailout" would only hold them GM over until March if you calculate there share of it with GM's current rate of loss. I am sure the other two aren't doing much better.

 

as long as you have never owned a Chrysler product and you don't deal with any of the banks that have been getting bail outs you are ok then

 

they are selling assets, letting folks go and just got the courts to agree on getting rid of the pension funds.......which has been a huge cost. Its really a matter of the economy getting better. There are huge losses of 25-35% to all car makers .........if this continues it will just come down to who has the most money in the bank. I think Nissan has been laying off people for a while now.

 

Toyota employees make $25 ?

 

well they are getting rid of the pension obligation so that $78 should be down to $58 ish.

 

Who gets the liability for the pensions?