A return to a slurry of movie news with a dash of glowing dogs. Mix it up with a serious discussion about Chrysler, and you've got episode 28 baby.
Here are some things we talked about:
This episode's song:
- Big White Elephant by In-flight Safety
Sunday, May 3, 2009
ETC Episode 28 - May 3rd, 2009
A return to a slurry of movie news with a dash of glowing dogs. Mix it up with a serious discussion about Chrysler, and you've got episode 28 baby.
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2 comments:
Dimiti Martin is a odd fellow. funny, but odd...
I thought I'd follow up on the "auto-crisis" conversation.
1. I don't think that GM and Chrysler is currently only trying to survive. Although, you could argue that they have been for the last 20 years of government bailouts. The potential of bankruptcy has put the organization in panic mode and it appears that they are trying to reassert itself as a forward thinking company - probably too little, too late at this point though. One of the large factors of this mismanagement I think has to do with the changing of the market share. For literally generations, the "Big Three" owned upwards of 90% of world auto sales and they became too comfortable and planning and production naturally became inefficient and innovation no longer mattered, which became ingrained in the culture of these organizations. Once competition came along, they could not turn around the culture.
2. As for the jobs of the autoworkers that we keep hearing about, there should be some concern but it will probably be okay in the end. Usually when companies file for Chapter 11 bankruptcy there is a reorganization/liquidation process. Therefore, your suggestion of having Toyota and Fiat etc, purchasing the Big Three plants will probably happen naturally anyway. When a British automaker (can't remember which one now) filed for bankruptcy, it was done on the condition that pensions would be respected and the workers be given first priority during the liquidation period - I can't remember where I read this though... Anyway, I think Aaron is right that these workers are the same as any other and can find jobs. The real concern comes with the individuals who have already retired and collect pension. If the automakers cannot repay the bondholders, they also may not be able to pay the earlier pensions (unless these are made part of the liquidation dealings).
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