The Environmental Motor Company from the WSJ, basically saying congress wants to make the Big 3 as part of the bail out super green as per the Sierra Club.
Interesting editorial with a definite viewpoint.
Known information:
1. Detroit has an over capacity issue.
2. Detroit has a healthcare & pension legacy cost issue.
3. Detroit has to many dealers.
4. Detroit has focused on SUV's with high margins, that do not sell with higher gas prices.
5. Detroit is running out of money because of low sales.
6. Detroit does not have many products in production in the US that are very fuel efficient.
7. Detroit in general is behind in hybrids.
8. Detroit has an adversarial relationship with their workers (ie unions).
9. The Bush administration fear more problems if tax payer money is used and accusations of socialism.
10. The democrats were heavily supported by the unions.
11. The democrats will have a larger majority in the new congress.
12. Bailing out the auto companies is not popular with the public at large. The first bailout of Wall Street was not popular.
13. Republicans's at this time are not backing a bail out of the big 3.
14. Strong supporters of the democratic party is the green lobby.
15. Big 3 currently employ 239,000 people, plus suppliers and dealers is around 3 Million, not counting retirees being supported. And then there is the job banks program.
16. In 2010, a UAW trust will take over retiree health care costs.
17. EU will not be happy about Auto Subsides (WTO complaint possibly).
Given the above information, it's a mess and I am glad I am not making the decision! Looks like political suicide now matter what happens.
I like Thomas Friedman's suggestion in How to Fix a Flat of a non-partisan board to make tough decisions.
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