Sanity Injection

Injecting a dose of sanity into your day’s news and current events.

Union concessions mean Chrysler may survive; Pontiac won’t.

Posted by sanityinjection on April 27, 2009

AP is reporting that both US and Canadian auto workers’ unions have made concessions that may allow Chrysler to enter a partnership with Fiat that will keep the company afloat – and save over 50,000 jobs:

http://news.yahoo.com/s/ap/us_chrysler_labor

The article doesn’t say what specific concessions the UAW is making, but if they are similar to the ones made by the Canadian Auto Workers, the Obama Administration (particularly Larry Summers and the folks at Treasury)deserves credit for holding the UAW’s feet to the fire just as they have done with management.

Meanwhile, GM’s latest radical restructuring plan is a desperate attempt to fend off bankruptcy and involves killing off the Pontiac brand. That’s not likely to please fans of the flashy, fun, but poorly built line of sports cars. I don’t think GM’s plan is going to work, because it’s going to be implemented by the same people who have run the company into the ground. Firing the CEO isn’t the same as a full overhaul of management. The result is likely to be losses for taxpayers who will end up saddled with half of GM’s debt and a lot of worthless stock.

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One Response to “Union concessions mean Chrysler may survive; Pontiac won’t.”

  1. When pandering to his UAW union base, President Obama has revealed the morally corrupt level to which he is willing to stoop. A morally corrupt President panders to the UAW at the expense of everyone else

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