Posted on 12/13/2008 6:26:05 AM PST by re_tail20
The Other American Auto Industry
Plenty of car makers make a go of it in this country--they're just non-union and not headquartered in Detroit.
West Point, Georgia
Drew Ferguson IV is a 42-year-old dentist whose family has lived in this town, population 3,300, "since God put us here." To be precise, the family arrived eight generations ago. Ferguson went off to the University of Georgia, then on to dental school, after which he came back to West Point. He and his wife, whom he met in college, have four kids. A year ago, Ferguson was elected mayor. "There's a reason I live in West Point," he says. "I love it. There's a sense of place here." No doubt, but West Point is located in what might also be considered the middle of nowhere. It's pinched between I-85 and the Alabama border. Atlanta is a good hour's drive away.
West Point today isn't the same town Ferguson grew up in. Textile company executives used to live here. But when the textile industry collapsed in the 1980s, the victim of foreign competition, they moved away. Thousands of jobs were lost. A few small technology firms took up some of the slack. But the high-tech bust of the late 1990s proved to be another job killer. "We survived without a federal bailout," Ferguson says sarcastically. Now, while much of America wallows in the gloom of a recession, there's great joy in West Point. "West Point will have more economic growth in the next 24 months than anywhere else in the country," Ferguson boasts. And he may be right.
(Excerpt) Read more at weeklystandard.com ...
The example of Chrysler back in the late 1970’s and early 1980’s, when Lee Ioccoca went to the Federal government to ask for a LOAN (or more specifically, loan guaranties, the actual loans were made by a consortium of banks), when he had a firm restructuring plan in mind. Then he carried out that restructuring (which involved a really SERIOUS giveback by UAW at the time), so he could build smaller, more economical vehicles (K-cars, the Onmi-Horizon, the first mini-vans) that put Chrysler back in the black, and able to repay the loans AHEAD of schedule. In fact, Chrysler did so well, the management was able to acquire the remnants of American Motors (then owned by Renault of France) which included the Jeep marque.
But by then, Lee Ioccoca was out of the picture, and Chrysler went back to their old bad ways, going along with the UAW to get along.
>>>It’s true that jobs were lost when several textile mills closed, but there are still plenty of manufacturing jobs in this area. Several years ago, I moved to Pennsylvania to a relatively rural area. By the time I left, it was hard to find green anywhere. I moved back to the town where I grew up, which is in the same county as the KIA plant. I don’t want to see this area go the way of the area in PA that I lived in.<<<
This is the most bizarre comment I have read, except for maybe #15. If you don’t like economic growth, move to Michigan.
all 3 industries he mentioned from furniture to autos were at one time in the north & unionized. perhaps that’s saying something to the UAW & it’s members.
those republican senators are trying to tell those UAW members the truth, either conform to similar wage/benefits or those companies will simply shut down or move
it’s not rocket science
the old nepotism thing of guarenteed jobs for generations is over, i hope thy see the light soon
Some of this is on principle - I refuse to further the mockery unions have made of labor.
The other part is just price, quality and warranty. KIA and Toyota have been great on all three.
Until the “Little 3” change dramatically, I won't be purchasing another vehicle from them...never.
bookmark
They can start by declaring bankruptcy, or another alternative is to sell the company to a new owner, the new owner then has the option to fire all the people and rehire the ones and numbers they want. They(sometimes)have to take the Union but they are free to negotiate wages etc. all over again. I went through this once and the company I worked for was more streamlined(in some ways)after the sale. Bankruptcy however is the best bet for getting rid of the Union.
Watching the UAW Pres yesterday, he was saying in essence, “I’ll be damned if were going to give anything up! But no bankruptcy either. Bring on the bailout!”
Their profligate ways are coming to an end.
Tennessee also has no state sales tax. Talk about getting a pay raise when moving from California!
That line stuck out at me too. I live in the deep south and my neighbor drives a truck for a water company delivering water. He makes good money. The Teamsters would like to organize them but most everyone is against it. Although his pay would increase he would lose his weekly and yearly bonuses, so he would wind up making less. I guess if he was a slacker he would be pro union but he works hard and likes his bonuses.
It’s not about economic growth. I don’t know anyone who would be against that. But then, maybe you’re okay with subdivision after subdivision of cookie cutter houses and never-ending traffic jams. This area is very rural, very quiet, and very laid-back. There’s nothing wrong with it the way it is. What’s that old Alabama song? Pass It On Down. That’s all I’m saying.
With the mess they are in now, I say when the current contract expires, don't renew or negotiate a new one. Simply lock the doors, fire every union member and then hire new workers. Train them and reopen the plants as non-union shops. It seemed to work ok for Reagan when he busted PATCO.
marker
Good. UAW is either in the way or against progress. In this case BOTH ! Dump em via bankruptcy versus bailout !
UAW workers. You want to keep your jobs ? Dump the UAW, keep your pay and benefits or else.
Management needs to review their product list as well. Too many IMO. Keep that which sells best. Take the lead for vehicles that get high mpg economy. A basic frame and drive train that will work with multiple body styles for commuter and daily drivers would be a good start. Be it 2 door sport, 4 door cruiser, minivan or light truck. Same frame and drive train, wiring harness etc etc . Many ways they can streamline their costs, keep their current employees and increase profits with minimal retooling and design efforts IMHO.
My family hails from a small township near West Point called Valley, AL. Great little town. In fact, I was just there a few days ago looking for a Continuing Care Retirement Facility for my recently widowed mother. That whole area is abuzz about the new Kia factory, ever since the West Point Pepperill textile company folded there.
GM builds Corvettes in KY, so there may be hope that the American makers can escape the UAW's clutches if the execs ever wise up and get their plants out of union controlled states like MI, OH, IN, CA, etc. If they get the $25 billion they want from Congress they should spend it on building new plants in right to work states.
With the UAW spending heavily to elect DemocRATs my 3 Fords are giving way to Toyotas. Bye-bye Detroit.
“A subsidy pays to keep jobs. An incentive pays to bring them. If you’re paying to keep them, it means somebody wants to leave.”
I remember when Americans started buying Japanese cars in quantity. I bought American. I never made an issue of it; people can do as they choose. I simply chose to buy American.
Import quotas were passed by Government. Surely this had the support of the American auto companies and the UAW. Import quotas reduce the freedom of Americans to buy as they choose. What had been a personal choice by me, to buy American, was cheapened as it became a collective choice forced upon all of us.
Now the Big Three and the UAW want my money regardless of whether or not I buy their product. If they can’t earn it; they’ll just take it. Enough is enough.
I made up my mind never again to buy from the Big Three or the UAW, even before reading this article. I was ready to buy Kia because the Koreans don’t limit my freedom or steal from me. Koreans make money the old fashioned way; they earn it. If Kias are made in the South, by non-union workers, that’s even better.
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