Quote:
Originally Posted by rwilhelm
Yup the restructuring is going to be long and painful! Hopefully after all is said and done our auto industry can be profitable.
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If the unions don't make deeper concessions, the american auto companies are going out of business, period. In the long term its probably a good thing as these companies have been losing share since the mid 90's. Their labor costs are just too high and their products are lacking in quality and innovation. Just look at their stock performance for a general consensus on how these companies are perceived. Consumer demand is down across all facets of the economy right now and its killing everyone, not just auto makers.
No matter how bad it seems now, the cash infusions are simply there to quell the labor groups immediate needs. Turning companies the size of our big three around takes more than a few billion bucks over a few months.
My prediction is chapter 11....bust up the unions....restructure by downsizing and cutting out unprofitable lines of business....employ much cheaper labor which means maybe going overseas. GM has a huge presence outside of the US.
As for the unions, I don't blame them for holding their ground as any concessions they make now will open the door for more concessions in the future. Problem is there will be no future for them if they don't drop their pants now and go into survival mode.
The best way, IMO, to guage your perception of these companies as viable entities is to ask yourself....."would I buy their stock"?
Well......would you punk?
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