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Sen. Corker at Detroit Auto show
Lets' make one thing clear, there is presently little difference between the quality of the Domestic and the Foreign Auto Manufacturers. The problem the Domestics face is one of perception based on the products that they used to produce. California is a prime example of this. People buy what has worked for them over the years and go where they are treated well by the service people. So if a Domestic and a Foreign make cost the same, many will choose the Foreign make based on experience. They would likely be very wrong if they chose a German manufacturer over a Domestic.
When it comes to labor and labor overhead costs it would appear that the only one with any business acumen, in Congress, is Sen. Corker. His proposal addresses the true issues behind the Domestic Auto manufacturers lack of competitiveness. He did not target solely the Unions rather all creditors. It was only the intransigence of the Unions that brought them to the forefront. Of course Mr. Gettlefinger does not wish to commit to any concessions, as that will lead to his demise and the gravy train he has been on. The same holds true for the Democrats that have been attempting to prop up the unions because of their substantial contributions to the Democratic coffers. Michigan Senators Levin and Sabenow are prime examples, they talk a lot, have nothing positive to contribute, and blame everyone else. The fact is that pouring good money after bad will not lead to a resurgence of the Domestic Auto makers, they may survive for a period of time, until the next time the economy tanks, and they once again will need money in order to survive.
President Bush has thrown the problem over to the Obama camp which just about assures the UAW that business will be conducted as usual. What will be the prospect of a GM and Chrysler survival if the proposed Obama magic is just another economic hoax ?
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