Short term survival assured – has the fightback started?

bucket of waterOld Dubya has decided that although his presidential legacy will be forever about going to wars with Iraq and Afghanistan yielding decidedly mixed results, and presiding over a worldwide recession created by US banks on his watch, he most certainly didn’t want to be remembered for being at the helm when the motor industry in the land of the free crashed and burned. It is not really any great surprise that he has finally succeeded in pushing through the $17bn bailout of Detroit’s 3 stooges.

The good and perhaps surprising thing however is that the package is not without strings and these companies will be under severe pressure to modernise not only their cars and production processes but also their commitment to produce more eco-friendly cars and stop wasting money in producing totally awful cars whilst being at the mercy of the too powerful auto union workers. The unions must surely by now concede and work together to rescue the companies from the mess they are in. They must wake up, smell the coffee and stop living in ‘Car-la land’!

If the UK government follow suit and let’s face it they appear to fall in line with most decisions that the White House make then it won’t come a moment too soon for our beleaguered companies. The difference here is that our car industry is actually worth saving even if it is predominantly foreign owned, these companies have still committed to the country and should therefore receive help to steer us through stormy waters.

Over to you Mr.Mandelson!

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2 Responses to Short term survival assured – has the fightback started?

  1. admin December 20, 2008 at 8:57 am #

    The bank bailout underwritten by the British taxpayer has so far failed to get lending going again, although it is now acknowledged that the banks ignited this crisis, months later they are still so trust averse that they won’t or can’t lend to each other and this is causing big problems for many companies who rely on credit to keep their businesses going. Every day now we hear of businesses struggling, cutting production and offering sabbaticals to staff or shutting dealerships down or simply throwing staff out on to the street just before Christmas.

    All the while Gordon and Mervyn fiddle and twitch and the banks sit by and do nothing. If this inertia continues there will be meltdown in the car business and ultimately nothing left to save! Unless they give short term financial support to help survival and assist until the economy kick starts once more, there will be no car manufacturing in this country to speak of.

    The White house has used money earmarked for the banking sector to assist the big 3 carmakers, a sensible plan that should be copied here. Thank god though that it’s not all doom as it seems that some of these clever bankers will still get to share millions and millions of pounds in bonuses whilst the country burns because of their greed and incompetence, I will sleep well knowing that breathtaking arrogance and ignorance is alive and well in the city. If you do lose your job, your home, savings or watch your fuel bills rise to even more unaffordable levels, always remember who caused this and think carefully the next time you seek financial advice from a bank!

  2. Sky News December 20, 2008 at 9:05 am #

    US President-elect Barack Obama has warned carmakers he hopes to create more jobs in the industry – but only if they reform.
    It followed a $17.4bn bail-out offer to Detroit’s beleaguered ‘Big Three’ car giants by the outgoing

    administration of President George Bush.
    Mr Obama said he would work with both carmaker unions and management to rebuild the industry.
    “My top priority in this administration is to create 2.5 million new jobs and I want some of those jobs to be in the auto industry,” he said.
    But he declined to say what, if any, changes he would make to the rescue plan announced by the White House after he takes office on January 20.
    He also did not reveal whether he would entertain appeals by the United Auto Workers union to remove what it called “unfair” conditions in the Bush bail-out plan.
    But Mr Obama said his economic team would discuss with workers and management ways to ensure their collective survival.
    He insisted the chance to end bad management practices and reform the industry “must not be squandered”.
    Mr Obama said it was clear that any plan to put the car industry back on track would involve “painful steps”.
    “I just want to make sure that when we see a final restructuring package, that it’s not just workers who are bearing the brunt of that restructuring,” he added.
    “All shareholders are going to have to play a part in this process.”
    Mr Obama has consistently given conditional support to proposals to help US carmakers, who have been pushed to the brink by collapsing sales and the global financial crisis.
    The industry’s problems are some of a plateful of economic crises awaiting the president-elect.
    He is also trying to craft a major economic stimulus plan likely to cost upward of $600bn in an effort to pull the country out of a deepening recession.

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