Sunday, November 23, 2008

Mitt Romney on the Auto Bailout

The big news of the week has been the proposed big 3 US automaker bailout by the government. Should the government save GM, Ford and Chrysler from bankruptcy? Should they let the companies suffer the consequences of decades of poor decision making and mis-management?

Here is a great editorial on the situation from Mitt Romney - a former Republican presidential candidate from this year's election. Romney has a unique perspective on the situation since his dad used to run American Motors (produces of the wonderful AMC Pacer and Gremlin).

Romney's position on the matter is pretty obvious, given the title of his op-ed: Let Detroit Go Bankrupt in the NY Times.

A few facts about the US auto industry compared to foreign companies who have manufacturing plants here in the US:

- US autoworker: $71 per hour (including benefits)
- Foreign autoworker (at a US plant): $47 per hour (including benefits)
- $2000 - the additional cost per car that US automakers must shoulder due to the massive union contracts and benefits they must pay out. With margins already so slim on new cars, it's pretty easy to see why the big 3 are having problems making money.

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Anonymous said...

I like this blog, the layout is great! Did you hear about the new bailout and financial assistance programs for citizens and immigrants??

Bailout and Financial Assistance for USA Citizens and Immigrants

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