Comments on: The UAW Will Now Own Chrysler?

By: mprimorac

mprimorac — Wed, 06 May 2009 19:36:39 +0000

I will never buy a car from this company again…I’ve purchased several in the past…not anymore though. Looks like I’m buying Ford’s from now on.

By: Jaycann

Jaycann — Fri, 01 May 2009 00:15:20 +0000

@shoopique

“I wonder if the UAW stockholders will demand that the company build profitable cars (SUVs, trucks and luxury cars) or will they try and produce the profitless roller skates the government wants but Americans wonâ€™t buy?”

How can you conclude the Americans won’t buy smaller, more fuel efficient cars? You looking to history for that? Well, history also says that the SUVs and trucks weren’t keeping the company afloat. If Chrysler chooses to make “profitless roller skates” as you indicate, then yes, the company will fail. If they choose to develop a new class of small, not necessarily cheap, fuel efficient cars, in the essence of BWM 1 series, Audi A3 series, Mini Cooper, Toyota Prius, then they can be successful. They can develop their own class if well thought out. Obviously what they had been doing didn’t work, it’s time for change.

By: shoopique

shoopique — Tue, 28 Apr 2009 18:03:55 +0000

I believe sailors call the UAW’s position “being hoist on your own petard.”
They now own what they forced into being. Some 250,000 UAW Chrysler retirees are now depending on 46,000 UAW Chrysler employees to keep their lifeline going.

I wonder if the UAW stockholders will demand that the company build profitable cars (SUVs, trucks and luxury cars) or will they try and produce the profitless roller skates the government wants but Americans won’t buy?

This should be fun.

By: kranky kritter

kranky kritter — Tue, 28 Apr 2009 16:57:09 +0000

I wonder how much of Polaroid was employee-owned in the final days?

I actually like the idea of employee-owned companies. But Chrysler doesn’t survive unless it finds a way to manage or escape its pension liabilities. This is true no matter who owns them.

By: ExiledIndependent

ExiledIndependent — Tue, 28 Apr 2009 16:00:24 +0000

Buwahahahah! Rich. Look to nature to see what happens when you push a beached whale back into the sea.

Seriously, what, the UAW is going to suddenly say, “Holy crap, we can’t pay our members $60 an hour to drive a bolt into a piece of metal! What were we thinking all these years?” More likely they’ll ask for government subsidies in order to stay competitive with Ford, Tesla (or any emergent competitor), and international competitors, and reduce product quality. Which will then lead to an even further decline in market share (except for the very lowest economic strata).

Although it is encouraging to see the blood of the working class fuel the machine for the great proletariat paradise. Or something.

By: Justin Gardner

Justin Gardner — Tue, 28 Apr 2009 14:46:40 +0000

This is why I said “increased” interest. Of course they had an interest before, but now that they essentially own the company, the game is different. They’ll be thinking about long term strategic decisions, including what cars they make, etc.

Personally, I’m wary, but maybe this will bring about a new form of corporate governance and accountability that will prove successful. We shall see.

By: cynicalone

cynicalone — Tue, 28 Apr 2009 14:15:59 +0000

Please explain how this says anything about unions’ predilections toward business.

Honestly, I think this could actually turn out rather well because the union obviously has increased interest in making sure the business stays afloat and is profitable.

They had no interest before?
I guess that explains a lot then.