GM/Chrysler Merger

[kwhizz]

Sammy.........Where did I say anything about the Dem's and I was just Passing along the Experience of Seasoned autoworkers........I injected "None" of my thought's and made "No" references to any of the Political Parties....

Ken

[69Tom]

Not sure if you've seen this news or not. Ridiculous, but hardly surprising.

<font color="blue"> Chrysler gives bonuses, asks for bailout </font>
Posted Nov 14 2008, 12:52 PM by Kim Peterson Rating: Filed under: Ford, Kim Peterson
Chrysler is asking the government for a bailout. It's laying off employees and cutting salaries. It's a company in trouble.

Oh yeah, it's also paying $30 million in bonuses to dozens of top executives.

That's the end result of a poorly-timed plan to keep Chrysler together as it was being sold. The company didn't want top executives to leave during the transition, so it promised big money for people who stuck around. Now, Chrysler is asking the government for billions of dollars in aid while it writes million-dollar bonus checks out to A-list employees. How's that for awkward?

In Chrysler's defense, this bonus plan was created in April of 2007. The company had no idea that its industry was headed for collapse, or that the executives it was desperate to keep might have a hard time finding employment at a Jiffy Lube at this point.

The bonuses are going to be another sticking point in Chrysler's request for government aid. The industry is asking for $25 billion in low-cost government loans. Chrysler is a private company, and may be asked to hand over a lot of information about its finances and how it handles its money. That includes information on those controversial bonuses.

Bonuses are under fire at other carmakers. Ford has cut some merit raises and bonuses for next year. The company is quickly running out of money, and is slashing its spending.

Executives from Chrysler, Ford and GM are headed to Congress next week to make their case for $25 billion in aid. The bonus numbers will quickly become a central point of the conversation, and deservedly so.

As a private company, Chrysler can do whatever it wants when it comes to compensating its executives. But a private company asking for a government bailout cannot. Better brush up on those resumes, boys, because the good times are coming to an end.

[69Tom]

And then there's this one about Detroit itself. Scary times.

<font color="blue">City Council: Detroit needs $10-billion bailout </font>
BY NAOMI R. PATTON • FREE PRESS STAFF WRITER • November 12, 2008
The Detroit City Council passed a resolution today calling for a $10-billion bailout for the city of Detroit.

Council President Pro Tem JoAnn Watson sponsored the resolution to use the money for public service employment, to fund mass transit plans and to place a moratorium on home foreclosures for two years.


The resolution specifically requests the council meet with Mayor Ken Cockrel Jr., Gov. Jennifer Granholm, the state’s congressional delegation, U.S. House Speaker Nancy Pelosi and officials from President George W. Bush’s office and President-Elect Barack Obama’s transition team.


Watson said she fully supports mayors from Warren, Sterling Heights, Livonia and Dearborn meeting with representatives from Granholm’s office, the state’s congressional delegation, the Michigan Economic Development Corp., the Southeastern Michigan Council of Governments and the Michigan Municipal League, seeking federal redevelopment funding for communities facing huge losses in property tax revenue affected by looming plant closures.


But, she said, “The city of Detroit has got to be leading the way on this.”


The city recently received $47 million from the U.S. Department of Housing and Urban Development to help stabilize neighborhoods hit hard by the nationwide foreclosure crisis. Officials with the city’s Planning and Development have prepared a plan the city council is expected to vote on in a week.

[Chevy454]

[ QUOTE ]
why bail them out if nobody is buying cars?

[/ QUOTE ]
A guy posted the follow over at LS2.com...I can't remember if he's directly employed by GM, or a 1st tier supplier, but anyway...

ARLINGTON IS ON TWO SHIFTS AND MANDATORY OVERTIME.
ARLINGTON BUILD BIG SUV'S (Tahoes, etc...).

He said they've seen the # of consumers picking up ever so slowly, but since gas prices have waned, they've shifted their interest *back* to TRUCKS/SUVs...take it for what it's worth!

[Salvatore]

Well I like hearing that! Keep America rollin.