[lbo-talk] Can the auto industry borrow AIG's lobbyist?

Eubulides prince.plumples at gmail.com
Wed Nov 19 11:42:33 PST 2008



> <http://www.nytimes.com/2008/11/19/opinion/19romney.html>
>
> Let Detroit Go Bankrupt
> By MITT ROMNEY
> Published: November 18, 2008
> Boston
>
> IF General Motors, Ford and Chrysler get the bailout that their chief
> executives asked for yesterday, you can kiss the American automotive
> industry goodbye. It won't go overnight, but its demise will be virtually
> guaranteed.
>
> Without that bailout, Detroit will need to drastically restructure itself.

[snip]


> First, their huge disadvantage in costs relative to foreign brands must be
> eliminated. That means new labor agreements to align pay and benefits to
> match those of workers at competitors like BMW, Honda, Nissan and Toyota.
> Furthermore, retiree benefits must be reduced so that the total burden per
> auto for domestic makers is not higher than that of foreign producers.
>
> That extra burden is estimated to be more than $2,000 per car. Think what
> that means: Ford, for example, needs to cut $2,000 worth of features and
> quality out of its Taurus to compete with Toyota's Avalon. Of course the
> Avalon feels like a better product — it has $2,000 more put into it.
> Considering this disadvantage, Detroit has done a remarkable job of
> designing and engineering its cars.

===============

Didn't Ross Perot have a rejoinder to the last sentence of this crap back when he ran for Prez.?



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