Comments on: Automakers Just Can’t Catch A Break

By: Jim S

Jim S — Sat, 06 Dec 2008 03:50:14 +0000

Labor laws? We have labor laws? Have they been being enforced for the last eight years? Of course not. Will any Republican administration enforce them? No. Would “conservatives” whine and cry if someone tries to enforce them? Of course they will. If you think that it is impossible for what unions won for workers to be lost I think you’re seriously underestimating the power of corporate lobbyists.

By: Michael in Oregon

Michael in Oregon — Sat, 06 Dec 2008 03:09:57 +0000

To Aaron’s comment about unions: right on. I have much respect for the historical significance of the unions – their struggles in the early part of the 20th century helped bring about the fair labor laws we have today. But now? Now it’s a racket – it’s a corrupt society rife with cronyism. I agree with Aaron – let the labor laws do their job and let’s be rid of the unions – auto workers, teachers, the whole lot. I’m in no way saying that the UAW caused the Detroit 3 to have the short-sighted business plans they did, but their demands have not been in line with what the market should be paying for decades.

I realize this comment is off-thread a bit, but I had to weigh in. I’m open to any reasonable defense of unions in the 21st century’s global marketplace.

By: TerenceC

TerenceC — Sat, 06 Dec 2008 00:16:38 +0000

They don’t deserve any slack – but they do deserve some sympathy. They have been publically humiliated going on two weeks:) How come we didn’t see this level of scrutiny for the Wall Street wonders. Those crooks took (and I use that term loosely) $350 billion (with another $350 b on the way) and no one seems to even know where the money went – what’s up with that? $34 billion in loan guaranty’s is expensive (considering the big 3’s combined market cap is less than $5 billion). However, screw the big3 CEO’s this isn’t about them it’s about helping the auto workers and their families. These people need the guaranty’s. CEO’s come and go, they’re a dime a dozen – but the autoworkers and their families are stuck there.

By: Doug Mataconis

Doug Mataconis — Fri, 05 Dec 2008 21:01:38 +0000

Cut them some slack already.

These men and the managers that serve under them are largely responsible for the near-destruction of three of America’s most storied companies.

They should be ashamed to appear in public. Heck, if this was Japan, they wouldn’t be appearing in public because of the shame of what they’ve done.

By: Justin Gardner

Justin Gardner — Fri, 05 Dec 2008 20:59:14 +0000

@Fuzzy – you’re right, they could have flown coach. But, like most Americans, they drove because it’s much, much cheaper. They can’t help what their salaries are right now.

@Doug – First off, ANY thing they would have done would have been scrutinized since people called them out for taking private jets first. So what would you have them do if not drive the products they make to showcase how they’re trying to innovate in the marketplace? Seriously…it’s like these guys literally can’t do anything without you finding something wrong with it.

Also, nearly everything that’s innovative and new starts out as expensive. That doesn’t mean costs can’t be cut.

Again, it seems like they’re damned if they do and damned if they don’t. Cut them some slack already.

By: FuzzyFace

FuzzyFace — Fri, 05 Dec 2008 19:49:34 +0000

And exactly why couldn’t they just do what any normal person would? Take a commercial flight? That’s why they got criticized – the driving is not something most people would think sensible.

By: mw

mw — Fri, 05 Dec 2008 18:26:40 +0000

I’m with Justin on this calculation, but with Doug on the bailout. I first heard this calculation on Tuesday – Jeff Macke on CNBC’s fast money compared the relative costs of having the CEO drive in a hybrid vs fly in a private jet to Washington D.C. and concluding that the flying is cheaper based on the exorbitant “hourly” rate of the CEO. I sent them an e-mail making these points (which was ignored – of course):

1) Macke should be advised that we no longer live in the horse and buggy age, with a blackberry and laptop the CEO can be as productive in the car as in the office. Probably even more productive.

2) As the CEO salary will drop to $1 after accepting the bailout, Macke should recalculate on this basis.

Finally, please have Macke do something really useful and calculate the relative cost of having the CEOs crawl on their hands and knees every inch of the way between Detroit and D.C. Don’t forget to include the entertainment value to American taxpayers.

By: George Mauer

George Mauer — Fri, 05 Dec 2008 18:16:42 +0000

I don’t think its wroth being indignant over this Justin, the media treatment of the whole thing is actually pretty funny. And they deserve a bit of a hard time.

By: Aaron

Aaron — Fri, 05 Dec 2008 17:47:37 +0000

I still really want to get a Volt, myself. I’m a big proponent of alternative fuel vehicles though, so take my opinion with apropriate bias. :)

Honestly, I’m a little miffed that these execs seem to at least be trying to show they’re serious about improving things for their companies, and no one’s putting heat to the UAW. Unions were a wonderful thing. They gave us labor laws and the 40 hour work week. Now its time for the labor laws to take over.

By: Doug Mataconis

Doug Mataconis — Fri, 05 Dec 2008 17:17:30 +0000

Justin,

My point, and that of the First Read article you linked to, is that this whole idea of driving down from Detroit was a publicity stunt from guys who should be sneaking into town rather than milking this for free media for cars that most Americans can’t afford (the Chevy Volt starts at $ 40,000 a pop, for example).

I don’t care what they get paid, as long as no part of their salary comes from the taxpayers