RickMcCharles.com

The best article I’ve seen on the Auto bailout was published in the NY Times:

Big Three workers aren’t making anything close to $73 an hour (which would translate to about $150,000 a year).

But the defenders are not right to suggest, as many have, that Detroit has solved its wage problem. General Motors, Ford and Chrysler workers make significantly more than their counterparts at Toyota, Honda and Nissan plants in this country. Last year’s concessions by the United Automobile Workers, which mostly apply to new workers, will not change that anytime soon.

Wages, overtime and vacation pay comes to about $40 an hour, still more than they deserve, I feel.

If you add the excellent fringe benefits you could call it $55 an hour, about double the average of the American worker.

Too much.

The real problem is that many people don’t want to buy the cars that Detroit makes. Fixing this problem won’t be nearly so easy.

I highly doubt the Big 3 can turn that around.

NYT – $73 an Hour: Adding It Up

Personally, I would not bail out the auto industry. Best case scenario would be for one of the 3 to go out-of-business, the two remaining surviving and thriving.

That won’t happen. The U.S. government will hand these bad companies tax dollars, borrowed from China.

Starting now the Big 3 business model will be to position themselves for future bailouts.

Sad.