>> The reason was to save the auto industry, and all the jobs associated with it.
There was, at no time, any chance that GM wasn't going to continue in business. No one has even discussed that. A DIP of that much property can find someone to take it, but at an appropriate write down. If, for some reason, that were not possible, then and ONLY THEN should they have been considered for government backed financing. Which, I believe, was what Romney suggested and he was exactly right.
The way it was mishandled greatly increases the likelihood of a future return to Chapter 11 because the creditors' power to restructure contracts was diminished.
"Saving jobs" was what they told the gullible liberals who don't know shit about business (that includes you). The jobs were going to be saved for now either way. That was never in question.
Long term, the jobs are gone as they are for other OEMs.
>> So, all in all, the auto manufacturers were able to get out from under any future obligations for the health care plans of retirees at 55 to 70 percent of what they owed.
The previous VEBA was itself dead broke. Employees didn't have claims on whatever was left. They're lucky to have gotten anything.
BTW, it is a perfect example of why unions should just go ahead and die. What the UAW did to GM is exactly the same as what the public sector unions have done in just about every major city -- at least those run by Democrats -- in the country. Detroit, Chicago, NYC, numerous cities in California, and many others. Broke, and unions are a big part of it. (See SFO transit workers making $300K/year). |
