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Mr. Blue MauMau's picture

Why Bailout Bill Failed

CNN: Republicans react to the defeat of the $14 billion auto bailout plan in the Senate and say that UAW was inflexible on wages. The UAW president said that member wages are lower than Toyota's wages and that senators just wanted to bust union.Embedded video from CNN Video

Meanwhile, the Associated Press reports on the UAW president describing his perception of where things went wrong on the Hill.

More to come. Car dealerships for the Big 3 represent some 20,000 franchisees. The National Automobile Dealers Association, to issue statement. . .

South Most Vocal in Wanting Big 3 Car Competition to Disappear

I understand the reluctance to bailout a company that has been in the wilderness for years. But it gives me an uneasy feeling that the biggest GOP critics of the bailout are senators from Southern states that are home to Japanese and Korean car manufacturing facilities. Nissan is based in Senator Corker's Tennessee. Toyota's big facility is based in Senator McConnell's Kentucky. I guess it is asking too much to look beyond their local interests of wanting Motown to disappear and Nashville and Georgetown to rise under the carnage.

Juan F's picture

Right to Fire, Egalitarian

This is what the CS Monitor says on why foreign car manufacturers have picked so far away from Detroit and why poor, rural Southern towns have become richer because of cheaper labor and their state policies:

While Detroit and the UAW are locked in what Mr. Lichtenstein calls a "failed marriage," the Asian firms, in particular, have flirted effectively with a South big on states' rights and individual liberties. With different work styles and no union rules with which to comply, foreign-car companies can be more flexible and responsive to customers – though union shops get top marks on seven of eight quality and productivity standards. Unlike in the Detroit-owned plants, workers at foreign-owned facilities eat in the same cafeterias as the brass – a kind of egalitarian mind-set that fits well with Southern social graces, leaving workers few incentives to unionize.

"The auto industry has for the most part transformed the South's economy, and it's because you're empowering [workers]," says Mike Randle, editor of Southern Business and Development magazine in Mountain Brook, Ala. "If you go to any of these foreign auto plants in the South, it looks like a rural high school parking lot – just a bunch of kids. Where are these young men or women going to get a job with a year of community college [experience]? Wal-Mart? Now they're starting at $17 an hour, and we're talking about thousands and thousands of jobs."

Don Sniegowski's picture

Sweden Bails Out Auto Industry

The government bailed out the auto industry today, the Swedish government that is. Volvo and Saab. Sweden gave roughly US$3.5 billion in loans to national car makers Volvo and Saab.

Read details here.

Barbara Jorgensen's picture

This is the first

having another country bail out something here in the states. Interesting.

Australia to bail out auto industry

and they are talking about $6.2B. So what happens to it if the US giants fall over or absorb that into other than supporting the Australian industry?