Comments on: My Plan for the Automaker’s Buyout http://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#utm_source=rss&utm_medium=rss&utm_campaign=my-plan-for-the-automakers-buyout A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Feb 2012 15:18:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kevinhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7751 Kevin Mon, 15 Dec 2008 21:59:43 +0000 http://www.nodebtplan.net/?p=1358#comment-7751 @Anne: It would be great if all companies could pay for the insurance for their retirees. Unfortunately this does not seem to be sustainable. If it drives your costs per hour to the aforementioned $70/hr, that's not sustainable. Employers have to make smarter decisions, you know, decisions that won't bankrupt the firm and force them to rely on the government. My company doesn't pay for my insurance if I retire. I don't know many that do. @Matt: I think you're right about the "sexyness" of the reporting. No one feels bad for the analyst that made $80k in NYC (just a decent living for what I know), but you hear all about the blue collar folks. @Anne: It would be great if all companies could pay for the insurance for their retirees. Unfortunately this does not seem to be sustainable. If it drives your costs per hour to the aforementioned $70/hr, that’s not sustainable. Employers have to make smarter decisions, you know, decisions that won’t bankrupt the firm and force them to rely on the government. My company doesn’t pay for my insurance if I retire. I don’t know many that do.

@Matt: I think you’re right about the “sexyness” of the reporting. No one feels bad for the analyst that made $80k in NYC (just a decent living for what I know), but you hear all about the blue collar folks.

]]> By: Matt SFhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7749 Matt SF Mon, 15 Dec 2008 21:30:20 +0000 http://www.nodebtplan.net/?p=1358#comment-7749 @ Anne I really think the lack of info for financial industry workers depends upon where you get your news. Mainstream media rarely covers the job losses on Wall Street b/c it's less sexy, from a media standpoint, to say that white collar workers lost their jobs than the hardworking, sweat-of-their-brow blue collar workers. However, if you watch CNBC (like I do 24/7), you will hear a daily reference to financial industry job losses. It's been nothing but excessive compensation chatter for CEOs and such lately, but now that major layoffs are happening all over the financial industry (latest numbers I saw were ~150k), it's getting more attention. No one really asks what happens to the 50 year old secretary who has worked the phones for Merrill Lynch for the last 25 years, or an IT guy who kept the stock price data flowing into the building. Good points to consider. But for some unknown reason, I think we're expected to feel more badly for a guy who works a manufacturing line than a guy who works in a cubicle. @ Anne

I really think the lack of info for financial industry workers depends upon where you get your news. Mainstream media rarely covers the job losses on Wall Street b/c it’s less sexy, from a media standpoint, to say that white collar workers lost their jobs than the hardworking, sweat-of-their-brow blue collar workers.

However, if you watch CNBC (like I do 24/7), you will hear a daily reference to financial industry job losses. It’s been nothing but excessive compensation chatter for CEOs and such lately, but now that major layoffs are happening all over the financial industry (latest numbers I saw were ~150k), it’s getting more attention.

No one really asks what happens to the 50 year old secretary who has worked the phones for Merrill Lynch for the last 25 years, or an IT guy who kept the stock price data flowing into the building. Good points to consider.

But for some unknown reason, I think we’re expected to feel more badly for a guy who works a manufacturing line than a guy who works in a cubicle.

]]> By: Anne Williamsonhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7747 Anne Williamson Mon, 15 Dec 2008 20:53:28 +0000 http://www.nodebtplan.net/?p=1358#comment-7747 I had another thought - why aren't we hearing more about salaries and retirement plans for financial industry workers? Do you think it's class bias? I don't know, just speculating. Or perhaps it's because we understand less about what it is they do everyday, as opposed to manufacturing, which seems easier to understand. I had another thought – why aren’t we hearing more about salaries and retirement plans for financial industry workers? Do you think it’s class bias? I don’t know, just speculating. Or perhaps it’s because we understand less about what it is they do everyday, as opposed to manufacturing, which seems easier to understand.

]]> By: Anne Williamsonhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7746 Anne Williamson Mon, 15 Dec 2008 20:42:47 +0000 http://www.nodebtplan.net/?p=1358#comment-7746 So manufacturers (and other employers) shouldn't insure their retirees? or their families? I agree it's not a solution but it seems strange to criticize employers for providing health insurance to retirees. So manufacturers (and other employers) shouldn’t insure their retirees? or their families? I agree it’s not a solution but it seems strange to criticize employers for providing health insurance to retirees.

]]> By: LALhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7734 LAL Mon, 15 Dec 2008 15:19:51 +0000 http://www.nodebtplan.net/?p=1358#comment-7734 Let me comment this, that perhaps one thing to do is to stabilize the bankruptcy. Let them fall gracefully into decline and not one fell swoop! Let me comment this, that perhaps one thing to do is to stabilize the bankruptcy. Let them fall gracefully into decline and not one fell swoop!

]]> By: Kevinhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7732 Kevin Mon, 15 Dec 2008 15:12:32 +0000 http://www.nodebtplan.net/?p=1358#comment-7732 Sounds like mostly everyone agrees. Again I'm not for crushing this part of the economy (suppliers, dealers, etc.) by just letting them fall apart. But they've made crappy products for a long time. It's time for a change. The money is also just a stop gap (bandaid) to get them to March. What exactly does that do? Will car sales go up by March? I doubt it. More money down the drain. Let them file for bankruptcy and reorg that way. @Anne: Thanks for pointing that out. You note that its because other manufacturers haven't been hiring Americans for very long. How about it's because other manufacturers aren't dumb enough to over retirement and health benefits for all workers and their families? That's simply not sustainable. @Matt: Excellent idea. I would fully support Honda and Toyota coming in and kicking butt. Sounds like mostly everyone agrees. Again I’m not for crushing this part of the economy (suppliers, dealers, etc.) by just letting them fall apart. But they’ve made crappy products for a long time. It’s time for a change. The money is also just a stop gap (bandaid) to get them to March. What exactly does that do? Will car sales go up by March? I doubt it. More money down the drain. Let them file for bankruptcy and reorg that way.

@Anne: Thanks for pointing that out. You note that its because other manufacturers haven’t been hiring Americans for very long. How about it’s because other manufacturers aren’t dumb enough to over retirement and health benefits for all workers and their families? That’s simply not sustainable.

@Matt: Excellent idea. I would fully support Honda and Toyota coming in and kicking butt.

]]> By: Margiehttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7700 Margie Sun, 14 Dec 2008 18:10:00 +0000 http://www.nodebtplan.net/?p=1358#comment-7700 Hi! I came over from Northern Cheapskate and I am glad I did. You voiced my own feelings on the auto industry perfectly! Hi! I came over from Northern Cheapskate and I am glad I did. You voiced my own feelings on the auto industry perfectly!

]]> By: Weekly Roundup and Carnivalshttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7617 Weekly Roundup and Carnivals Fri, 12 Dec 2008 14:33:47 +0000 http://www.nodebtplan.net/?p=1358#comment-7617 [...] talks about “His plan for the Automaker’s bailout.”  I say let Honda and Toyota show them how it’s [...] [...] talks about “His plan for the Automaker’s bailout.”  I say let Honda and Toyota show them how it’s [...]

]]> By: LALhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7591 LAL Thu, 11 Dec 2008 20:45:45 +0000 http://www.nodebtplan.net/?p=1358#comment-7591 Let Toyota and Honda restructure them to run the same as them. Let them go bankrupt and renegotiate with UAW. Let Toyota and Honda restructure them to run the same as them. Let them go bankrupt and renegotiate with UAW.

]]> By: Matt SFhttp://www.nodebtplan.net/2008/12/09/my-plan-for-the-automakers-buyout/#comment-7533 Matt SF Wed, 10 Dec 2008 05:55:59 +0000 http://www.nodebtplan.net/?p=1358#comment-7533 Lots of good solutions here, but how about this one... Ask representatives from Honda and Toyota to supervise the GM / Ford / Chrysler day to day operations for a period of one year. Cut out the dead weight (e.g. the UAW), hire a team of effective managers, and most importantly... make cars that the American public actually want to buy. These guys have had constant problems once they were forced to make cars that didn't fall apart after 5 years, and will only survive if extraordinary steps are taken to avoid natural selection. If only the dinosaurs had politicians to help them millions of years ago. Lots of good solutions here, but how about this one…

Ask representatives from Honda and Toyota to supervise the GM / Ford / Chrysler day to day operations for a period of one year. Cut out the dead weight (e.g. the UAW), hire a team of effective managers, and most importantly… make cars that the American public actually want to buy.

These guys have had constant problems once they were forced to make cars that didn’t fall apart after 5 years, and will only survive if extraordinary steps are taken to avoid natural selection. If only the dinosaurs had politicians to help them millions of years ago.

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