Tuesday, June 10, 2014

Review of used autos for sale::Privately Owned Cars for Sale?







Review of used autos for sale::Privately Owned Cars for Sale?








With               President               Obama               leading               GM               into               bankruptcy               proceedings               today,               the               U.S.

taxpayers               are               on               the               hook               for               at               least               $50,000,000,000.00               in               this               game               of               political               payback.

The               reorganization               plans               for               General               Motors               seems               to               be               extremely               short               sighted               and               lacking               any               appreciable               hopes               of               reestablishing               a               competitive               automobile               manufacturing               industry               in               the               United               States.

Since               all               U.S.

citizens               are               going               to               be               the               proud               owners               of               60%               of               this               automobile               company,               there               should               be               more               public               scrutiny               of               the               plans.

To               better               understand               the               problems               associated               with               Obama's               auto               bailout               plan,               we               need               to               look               at               how               the               U.S.

auto               manufacturers               came               to               be               in               this               position.

The               big               three               (               GM,               Ford               and               Chrysler               )               dominated               the               U.S.

and               world               markets               for               decades.

This               led               to               large               profits               and               lax               negotiations               with               the               United               Auto               Workers               (UAW)               union.

Profits               were               plentiful               and               any               work               stoppage               associated               with               union               negotiations               would               lead               to               huge               profit               losses.

This               led               the               big               three               to               give               union               contracts               with               relatively               high               wages,               numerous               benefits               and               an               extremely               generous               retirement               plan.
               The               market               share               dominance               of               the               big               three               continued               without               opposition               into               the               1970s.

By               this               time,               the               extended               period               of               dominance               had               led               to               problems               with               lack               of               innovation               and               quality.

When               the               Japanese               imports               began               to               show               up               in               the               1970s,               they               found               the               big               three               at               a               disadvantage.

The               imports               were               more               reliable               and               inexpensive               compared               to               their               U.S.

counterparts.

The               big               three               began               the               long               trend               of               losing               market               share               to               the               import               vehicles.
               In               the               1980s,               the               big               three               began               to               show               improvements               in               their               vehicles.

Quality               and               reliability               standards               began               to               increase.

They               began               to               show               some               more               innovation               in               their               designs               but               they               continued               to               have               problems               in               retaining               market               share.

Public               perception               of               the               quality               of               big               three               autos               remained               low               and               would               lag               for               many               years               to               come               up               to               the               present.
               The               big               three               continued               to               be               at               a               disadvantage               in               pricing               their               products               competitively               with               the               import               vehicles.

UAW               contracts               that               were               conceived               in               a               market               dominated               by               the               big               three               were               now               a               drag               on               the               U.S.

auto               companies.

Not               only               were               the               direct               labor               costs               higher               for               the               big               three               but               the               legacy               costs               of               retirees               dragged               on               the               company.

Former               workers               were               surviving               much               longer               in               retirement               at               the               same               time               as               medical               costs               were               beginning               to               skyrocket.

This               trend               continued               until               the               big               three               were               spending               more               to               pay               the               labor               costs               of               their               retirees               than               for               the               active               workers.
               In               the               1980s,               the               Japanese               automobile               manufacturers               began               to               assemble               in               the               U.S..

Their               brands               maintained               a               labor               cost               advantage               by               keeping               the               UAW               from               organizing               at               their               plants.

They               are               able               to               offer               competitive               wages               while               maintaining               lower               labor               costs               because               they               are               not               saddled               with               the               legacy               costs               to               the               UAW               retirees.
               I               am               not               saying               that               the               UAW               is               evil,               just               that               these               obligations               to               union               members               and               retirees               were               a               major               financial               drag               on               the               big               three.

The               contracts               were               originally               negotiated               in               a               period               of               U.S.

industrial               domination               and               are               not               functional               in               a               period               of               global               industrial               competition.

The               UAW               contracts               were               not               the               sole               cause               of               the               collapse               of               the               U.S.

auto               industry               but               they               are               a               major               contributing               factor.
               Now               that               we               face               the               total               collapse               of               GM               in               2009,               the               U.S.

was               faced               with               the               problem               of               what               to               do               about               it.

I               agree               with               the               idea               that               we               did               not               want               to               see               U.S.

automobile               industry               disappear               from               the               landscape.

Having               viable               manufacturing               industries               in               the               country               is               of               extreme               importance               for               many               strategic               and               economic               reasons.

But               the               approach               taken               by               the               Obama               administration               appears               to               be               an               extreme               gamble               based               on               paying               back               the               UAW               for               it's               support               of               the               Democrat               party.
               As               G.M.

filed               for               chapter               11               bankruptcy               on               Monday,               Obama's               plan               seems               to               leave               much               to               be               desired.

The               U.S.

would               control               60%               of               the               company               in               exchange               for               it's               past               and               future               financial               contributions.

The               UAW               would               take               17.5%               of               the               companies               shares               in               exchange               for               money               owed               the               retiree               health               care               trust.

Unsecured               bond               holders               would               get               a               10%               stake               in               G.M.

in               exchange               for               $27               billion               in               debt.
               The               elimination               of               the               payments               to               the               retiree's               health               care               trust               will               help               the               new               G.M.

to               be               more               competitive               but               will               it               be               enough.

G.M.

will               still               be               under               the               current               UAW               contract               with               freezes               in               place               for               the               next               few               years.

The               company               will               be               under               intense               government               pressures               and               scrutiny               for               the               foreseeable               future.

The               Obama               administration               has               called               for               G.M.

to               focus               on               building               a               "green               fleet"               of               vehicles               even               though               this               type               of               car               has               not               been               profitable               for               U.S.

manufacturers.

Chapter               11               plans               call               for               continued               downsizing               and               employee               buyouts.

Is               there               any               real               hope               of               G.M.

ever               regaining               it's               stature.
               Would               we               not               have               been               better               served               by               President               Obama               if               he               had               put               the               taxpayer               ahead               of               the               UAW               campaign               contributors?

When               G.M.

was               collapsing,               the               administration               could               have               used               it               as               a               real               model               to               revitalize               the               domestic               auto               industry.

The               U.S.

government               could               have               used               the               $50               billion               to               provide               secured               loans               for               the               buyers               of               a               split               up               G.M..

When               G.M.

entered               chapter               11,               the               courts               would               oversee               the               break               up               of               the               company               assets.

Sale               of               these               assets               would               have               gone               to               paying               off               debts               to               bond               holders               and               the               UAW               obligations.

The               government               could               have               helped               the               financing               of               private               entities               to               buy               up               assets               from               this               break               up.

This               would               have               led               to               the               creation               of               new               companies               (some               under               the               old               product               line               names)               that               would               be               free               from               all               prior               burdens               of               G.M.

including               the               UAW               contracts.
               This               would               have               led               to               a               truly               new               and               revitalized               auto               industry               in               the               U.S.

but               President               Obama               could               not               do               this.

He               had               too               much               political               debt               to               the               unions               that               support               the               Democrat               party.

So               the               interests               of               the               UAW               got               placed               ahead               of               all               the               U.S.

taxpayers.

I               do               not               see               how               the               same               old               G.M.

will               succeed               while               inflicted               with               all               of               the               government               "help"               in               running               it's               business.

The               taxpayer               will               be               on               the               hook               for               more               and               more               "investments"               in               this               failed               company.

Pressures               to               provide               favorable               terms               from               the               government               to               this               government               owned               companies               will               only               cause               pressure               on               the               sole               remaining               independent               manufacturer               (Ford)               and               retaliation               from               foreign               manufacturers.
               We               have               spent               $50               billion               to               save               300,000               jobs.

That               is               over               $150,000               per               job.

I               only               hope               that               there               is               some               payback               in               the               future.

That               is               beyond               the               payback               that               President               Obama               will               get               from               his               union               supporters.






Image of used autos for sale






used autos for sale
used autos for sale


used autos for sale Image 1


used autos for sale
used autos for sale


used autos for sale Image 2


used autos for sale
used autos for sale


used autos for sale Image 3


used autos for sale
used autos for sale


used autos for sale Image 4


used autos for sale
used autos for sale


used autos for sale Image 5


  • Related blog with used autos for sale








  • Related Video with used autos for sale







    used autos for sale Video 1








    used autos for sale Video 2








    used autos for sale Video 3




    used autos for sale





























    Labels: , , , , , , ,

    0 Comments:

    Post a Comment

    Subscribe to Post Comments [Atom]

    << Home