General Motors and Ford are on the ropes. It’s not that they make bad cars that has put their existence in jeopardy. Over the past 55 years they have put themselves in a position that they can no longer compete with the foreign auto makers located in the U.S. General Motors currently has 145,000 employees and supports another 1.1 million retirees and dependents. Between retirees health care benefits and pensions each car cost GM $2,500 more to make then their foreign competitors. Because of antiquated factories they can’t change their production to the cars that we want as Honda and Toyota can. Thus the perfect storm has developed, their retiree costs are rising, they don’t make the cars that we want, and they can’t change fast enough. They are headed for bankruptcy.
Guess who is going to be on the hook for their retiree’s benefits. That’s right the government (Employee Retirement Income Security Act of 1974), in other words the tax payers, you and me. The same people who are going to have to bail out Freddie Mac and Fanny May. We, the tax payers, are already $9 trillion in debt. That number could easily double within the next twelve months as a result of these two mismanagements of Corporate America.
Please join me in demanding from Barack Obama and John McCain a comprehensive plan that addresses the banking crises, the U.S. auto industry crises, the housing crises, and our dependence on foreign oil.
Get answers before the election or shame on us.
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