The Auto Industry

From http://www.lewrockwell.com/blog/lewrw/archives/023903.html


November 09, 2008

Nationalizing the Auto Industry

Posted by Karen DeCoster at November 9, 2008 05:54 PM
Obama has said that "righting" the auto industry is one of his top priorities. The government's plan to prop up GM with 'confidence protection' has not worked. Even they can no longer keep GM afloat without overt intervention. GM burned through $7 billion in cash in the 3rd quarter. I've been criticized for criticizing GM for years.
Back in 2003 I blogged about the UAW negotiations, where government-empowered, union thugs grabbed a bunch of insane benefits that gave everyone short-term spoils at the expense of their own long-term survival. The union has been sucking the Big 3 dry and having a hunky-dory time doing it.

White collar benefits have been almost as good. The locals in Detroit who work for GM have always called their employer the "Generous Mother." I got called up a month ago by a headhunter who wanted me to interview for a position in the financial reporting group at GM. I said, "hahahahahahahaha. right. no thanks." Headhunters in the accounting/finance realm tell me they hate having to deal with Big 3 finance people because they are so grossly overpaid, and so used to mega benefits, they can't get them to understand: "No, you won't make that kind of money to do what you do anywhere else." They are spoiled and difficult to work with as clients because they set their expectation way above what the market will offer them.

Give Obama time and the government will have quasi-ownership of the Detroit automakers. The government will tell the auto manufacturers what kind of cars they can design, what they will produce. There will possibly be an auto czar. Since we have Neel (carry the cash to Wall Street) Kashkari as the Bailout Czar, perhaps we could have Al "Gore" as the Auto Czar.
I have been in the market for a new car, but will wait until the time is exactly right - when the auto manufacturers get desperate and give me a ridiculous price and a 0% interest rate. And oh, it will come down to a Honda or a Subaru.