Re:Ask YC: To save GM or not?
by callmeed on Thursday November 13, 2008 @01:26PM
(#363369)
I don't like the word "bailout", but I think letting them die at the moment is too risky.
I would consider a government-backed loan or temporary equity stake on the conditions that:
- Executives are replaced
- The UAW agrees to major contract restructuring or is disbanded altogether (see below before you crucify me)
- The companies set efficiency goals for production and sales processes (stop putting out designs earlier and changing them every year)
I also think the government could do things on the demand-side to help. Such as offering tax credits for buying a new, American car
On the UAW issue, please be aware that I'm not "anti labor". Non-union workers at US-based plants (for Toyota, Hyundai, etc.) have comparable salaries, good benefits (including pensions), and negotiating power.
I would consider a government-backed loan or temporary equity stake on the conditions that: - Executives are replaced - The UAW agrees to major contract restructuring or is disbanded altogether (see below before you crucify me) - The companies set efficiency goals for production and sales processes (stop putting out designs earlier and changing them every year)
I also think the government could do things on the demand-side to help. Such as offering tax credits for buying a new, American car
On the UAW issue, please be aware that I'm not "anti labor". Non-union workers at US-based plants (for Toyota, Hyundai, etc.) have comparable salaries, good benefits (including pensions), and negotiating power.
Some good info on all of this at NPR: http://www.npr.org/templates/story/story.php?storyId=9694532...