Aren’t you glad he’s not the president?
Presidential candidate Mitt Romney, whose father ran AMC, wrote in the New York Times about the prospect of bridge loans for domestic automakers. He claims that the loans would actually cause the death of GM, Ford, and Chrysler, because bankruptcy is, in his view, the only way to get rid of UAW contracts, executive perks, and old management.
Romney is most likely ignorant of the fact that bankruptcy itself does not bring in new executives or reign in executive pay — though it can do that, that’s all up to the judge, and judges (particularly in the Delphi case) have been known to make some odd decisions.
Romney also seems to be relying on very old knowledge of the industry, and does not realize that automakers now rely on their assembly workers to actually think. The Henry Ford model of paying people the lowest amount possible and having constant turnover of employees no longer works and is not used, as far as I know.
I can hardly argue that executives are not grossly overpaid, nor that many of them should go, but how would bankruptcy assure that? Look at other companies that declared Chapter 11. Did Delphi executives (other than the CEO) get huge bonuses or did they all pack up and go home?
I’ll hand it to Romney for one thing – he doesn’t appear to have been influenced at all by all the financial contributions and support from the executives and autoworkers he slammed.
What makes matters worse is that Romney wrote that the auto industry is critical to the United States. However, his demonstration of ignorance, coupled with his apparent refusal to consult with anyone who might have knowledge, makes me very glad indeed that his bid for the White House failed. Who knows what he might do in a crisis where his thoughts actually mattered?
I would not vote for Romney even if he was running for dog catcher.
Well, I am glad he isn’t president, however, not for the reasons bombasted here. Setting that aside, he is one that does know how to make companies run, makes a lot of money, and incurred much notable success in turning companies around that are losers, as well as for making the Olympics in Salt Lake a hugely profitable operation while prior to his hiring it was in a very deep hole. I hardly doubt that he is ignorant of bankruptcy laws. Indeed he has been touting them. Like any politician, and he is after all a consummate one, having been a Republican governor of a deeply Democrat state, of course he is going to put his best efforts forth for the worse case scenario.
As for the assertion the bankruptcy does not change executives or their pay, least we forget just how Walter Chrysler came into Willys when it was in receivership. He got big bucks, and John North got a compensation cut. WPC also had his own team. That doesn’t mean it WOULD happen, only, that it in a lot of cases, does and COULD happen.
Agreed about the White House games. Hope that changes in January, and we get a WHOLE lot more transparency about the economic programs SUPPOSED to be stimulus.
Unions. They were a very good thing, at least most of them, in the beginning. Now? Just another big business with too much behind the scene positioning, political influence, and too much money being spent on things OTHER than member’s security and health care issues. Mr. Gettlelfinger wrote an article that appeared in the DETROIT PRESS right after the Presidential election. It was VERY revealing. In it he set forth how much money the union raised to get BO elected. The main item NOT revealed is that union members have no choice in HOW the union applies its political funds. It goes to who the union bosses back, and the member has no say to it. Which, unfortunately reflects most of the other clauses for which union contracts as are presently constituted. In the end, his most telling comment? “You owe us.”
Think Congress wasn’t listening? As well, Mr Gettelfinger made it clear, “no more concessions.” OK. I just hope and pray that there are companies left that he might be able to make that argument to.
Oh, BTW, the unions are now also pushing to make the bed rock foundation of a democratic sort of self governing entity the good thing that it, is by pushing for total elimination of the ability to vote in secret. The unions and their goony underlings want to know who is for and especially who is against being union. Not saying that the people in the union are somehow tainted. For the most part, like all of us, they want a good job, health care, security, and a decent retirement to look to. The union has done all that. It is just the stuff at the top that needs, like government, to change.
In the end, well, bankruptcy just doesn’t look so bad. It puts judges in charge of reorganization, not blind pigs like Mr. Waggoner. It would force contractual changes that would only benefit companies, and stop congress, unions, and other nefarious meddlers from interfering a long held legal process of this country. It doesn’t mean they are going to suddenly disappear overnight, nor have 3 million unemployed hit the rolls on one day. Calling Mr. Romney out of touch is a bit beyond the pale. Despite that I am glad he isn’t president, doesn’t mean that he should disappear. He is a very talented man.
Yes, Romney is talented indeed. Few people can lie with such conviction. Remember his claim that the jobs lost in Michigan this decade, under his party’s president, would come back? Of course, that was when he was running in the MI primary. When the wind shifts so does Romney’s opinion.
Yes sir, and as a consummate politician that makes him different than the rest……. how?