“If we don't bail out GM/Ford/Chrysler they will obviously go bankrupt. There would be a strong possibility that they would try to sell the company. Toyota has already expressed interest in buying GM. We wouldn't loose jobs and the next generation of fuel efficient vehicles will be developed here.”
Wednesday at 3:48 pm
- Link
How do you figure that a Toyota purchase of a bankrupt GM would *not* involve massive layoffs...if such layoffs did not already precede the purchase? - Chester
It's cheaper to keep workers in place than to hire or move in new ones. US auto companies have brand recognition and loyalty and those are things any new owner would be stupid to not exploit fully. - RefD
The big question would be what would happen to the union contracts in the event of a Toyota buy out, and if those would be an impediment to such a buy out. Toyota and Honda both have US plants already, but mostly in the non-unionized south. - Eric P
Actually, RefD, it would be cheaper to layoff existing union workers as part of the bankruptcy and then hire non-union workers after the buyout. - Stupid Ninja (aka Tina)
Whether they reorganize under bankruptcy or get bought out, the UAW contracts will be voided. That, in itself, would probably save GM and Ford. Chrysler is a different story; the holding company that owns them is quite solvent and the fact they are seeking welfare is absurd. - Mark VandenBerg
Japanese auto manufacturers produce better products with less overhead and much more financial stability. I say let it happen. - JC unwired
Japanese auto makers also don't have union workers, nor do they pay great wages. There's your 'lower overhead'. - Anika Malone
Toyota pays an average of $25.00, GM pays an average of $28.00 an hour. It's when you add the difference in benefits to current and retired employees, as mandated by the union contracts, that the difference becomes a large number. http://www.signonsandiego.com/... {edited} - Mark VandenBerg
