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Its over

December 12, 2008

The US automaker bailout is apparently officially dead.

According to AP’s report that’s just out, it collapsed “after the United Auto Workers union refused to accede to Republican demands for swift wage cuts.”

At the center of this is the apparent refusal of the union to lower wages to the range that Toyota, Nissan and Honda USA are paying their employees, as demanded by the Republican Senators.

GM’s total hourly labor costs are now $69. Toyota’s is $48.

No wonder these automakers can’t sell their cars anywhere else.

Looks like its not just the management that’s killing this deal. We forgot about the guys on the factory floor.

Markets in Asia are now reeling on this news.

3 Comments leave one →
  1. December 12, 2008 4:01 pm

    Another big drop in Wall St soon šŸ˜›

    Yeah. Japan’s Nikkei dropped 6% when the news hit the Tokyo market and the US dollar fell to a 13-year low.

  2. LC Teh permalink
    December 12, 2008 5:16 pm

    Ah… it’s that collision course thingy. See who blinks first. Nobody wins if nobody wants to lose. Everyone’s got to take a step back, to see the horizon and the sky.

    I’m watching the Detroit talks live on CNBC now and it seems that every side has their own reason why they should not take a step back. Each side accuses the other of not understanding the “real” issue. So if there are 5 sides, there are 5 “real” issues which nobody is capable of understanding except the party making the accusation. Heh. I don’t see how this is going to work out.

  3. afrankangle permalink
    December 12, 2008 11:13 pm

    A very complex issue with many sides that make sense.

    VP Cheney is reported to have used the name of Herbert Hoover when discussing would could happen without the rescue/bailout.

    Yeah its confusing. WSJ seems to report it differently than AP, etc. Its getting more and more likely that the White House will leapfrog over the senate and use money destined for Wall St to proceed with the rescue.

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