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For weeks leading up to the election I have been talking issues with friends and co-workers highlighted by the campaigns. One of the issues that often came up was the "bail-outs" going on to save financial systems that were lending money to people who could not afford the property\land that they were signing up for. Several blogs and writers have written about how many in Congress made these "risky\foolish" loans possible and I hope to write about that myself in the future with stacks of info and criminal convictions to refer to...
For sometime I have been telling friends at work that I had read in the past that the sticker price of a new American made vehicle included a built in charge of $1,300 just to pay medical and other benefits to retired Union Autoworkers. These deals were made by prior Auto management teams who made very bad business decisions in the past resulting in the situation they now face. Like the financial debacle we just "bailed-out" with taxpayer money, it now looks like Congress plans to bail out the auto makers because of their bad choices...
I was wrong!!!
Investors Business Daily ran this article and the fact is it is $2,300 added to the cost of each vehicle !!!
"Automotive chiefs are meeting with House Speaker Nancy Pelosi with their hands out. At issue: vast pension obligations to 780,000 retired workers that already add $2,300 to the cost of every new car sold. Credit-strapped consumers want value, not pension-inflated price tags. So, the bailout is in the works."
While driving home today this very same issue came up on the radio and one of the commentators brought up an interesting fact. If the auto manufacturers are forced into bankruptcy as they claim they are headed without a bailout, the bankruptcy courts would likely eliminate the union autoworkers contracts with the auto manufacturers. Likely this is why Democratic Speaker of the House Nancy Pelosi and her congressional friends are pushing for a bailout of the auto industry... Unions and their political contributions are an important part of the Democratic Party makeup at election time...
I have own and continue to drive American made vehicles but I no longer buy “New” vehicles due to the high cost and sharp decline in value after initial purchase. My 1995 Chevy now has 313,000+ miles on it and is still strong. I hope to see a new American auto industry that provides a good quality product at a “reasonable” cost…
For now look for me cruising town in the above "sleek-machine"...
