Engine Of Democracy

The Engine Of Democracy Will Be Up Dec. 1st-The Engine Of Democracy
Visitors also will be able to see the impact of Detroit's automakers on their state as well as key facts and myth-busters concerning Detroit's automakers such as:


-- The automakers are requesting a bridge loan, not a bailout as Wall
Street has done. The companies need the loan because the U.S. credit
freeze has essentially closed capital markets and squeezed their cash
flow from operations that are being devastated by extremely low consumer
demand across the industry. This freeze is happening as the automakers
are in the midst of huge restructuring costs, heavy pension and health
care payments and massive-yet-crucial product and advanced technology
investments so that today's and tomorrow's vehicles are even safer and
more environmentally friendly.
-- GM, Ford and Chrysler make vehicles Americans want to buy. 50 percent of
the products sold in this country come from those companies. The
best-selling vehicle in the U.S. is a Ford; No. 2 is a GM product.
-- Motor vehicles and parts are the single largest export from the U.S.,
topping aerospace, medical equipment and communications.
-- According to J.D. Power, three of the top five brands for dependability
are American made: Buick, Cadillac and Mercury. The 2008 Chevy Malibu
is the highest ranked midsize car in initial quality. The 2008 Chevy
Silverado ranks highest in large truck quality. Ford quality is on par
with Toyota and Honda.
-- Ford has the most five-star safety rated vehicles in the industry and GM
has the same number of vehicles as Toyota that achieved the top safety
rating, according to the Institute for Highway Safety.
-- GM, Ford and Chrysler build fuel-efficient vehicles. GM has twice as
many models thatget 30 mpg or better than its nearest competitor. GM's
four new midsize crossover vehicles have best-in-class fuel economy. GM
has eight hybrids on the road today, with a total of 20 planned by 2012.
The 2-Mode Chevy Tahoe full-size SUV was named Green Car of the Year
last November. The new Ford Fusion Hybrid and Mercury Milan Hybrid beat
the Toyota Camry Hybrid by 6 miles per gallon. In minivans, Chrysler is
better than both Nissan and Toyota and basically tied with Honda.
-- GM, Ford and Chrysler have been restructuring their businesses over the
past few years that included the loss of tens of thousands of jobs, a
new labor contract with the UAW that will bring costs in line with
foreign competitors in this country, and productivity gains that have
put them on par with the competition. Ford was profitable in the first
quarter of 2008 before the economic crisis began and has been working
for two years to improve its balance sheet through aggressive
restructuring while accelerating the development of new, safe,
fuel-efficient and high quality products. GM has reduced structural
costs in North America by $9 billion since 2005, eliminated raises and
bonuses for executives and salaried employees, and aggressively
addressed its manufacturing footprint, shifting from truck and SUVs to
smaller cars and crossovers.
-- According to The Harbour Report, the manufacturing productivity bible of
the industry, GM has more plants leading their respective segments in
productivity than any other competitor, foreign or domestic.

Contributions after September 11th 2001

Ford, Chrysler and GM's 9/11 Contributions
CNN Headline News did a short news listing regarding Ford and GM's contributions to the relief and recovery efforts in New York and Washington. The findings are as follows......

1. Ford- $10 million to American Red Cross matching employee contributions of the same number plus 10 Excursions to NY Fire Dept. The company also offered ER response team services and office space to displaced government employees.

2. GM- $10 million to American Red Cross matching employee contributions of the same number & a fleet of vans, suv's, &trucks.

3. Daimler Chrysler- $10 million to support of the children and victims of the Sept. 11 attack.

4 . Harley Davidson motorcycles- $1 million & 30 new motorcycles to the New York Police Dept.

5. Volkswagen- Employees and management created a Sept 11 Foundation, funded initial with $2 million, for the assistance of the children and victims of the WTC.

6. Hyundai- $300,000 to the American Red Cross.

7. Audi- Nothing.

8. BMW- Nothing.

9. Daewoo- Nothing.

10. Fiat- Nothing.

11. Honda- Nothing despite boasting of second best sales month ever in August 2001

12. Isuzu- Nothing.

13. Mitsubishi- Nothing.

14. Nissan- Nothing.

15. Porsche- Nothing. Press release condolences via Porsche website.

16. Subaru- Nothing.

17. Suzuki- Nothing.

18. Toyota- Nothing despite claims of high sales in July and August 2001. Condolences posted on the website.

Whenever the time may be for you to purchase or lease a new vehicle, keep this information in mind. You might want to give more consideration to a car manufactured by an American-owned and/or American based company. Apart from Hyundai and Volkswagen, the foreign car companies contributed nothing at all to the citizens of the United States. It's OK for these companies to take money out of this country, but it is apparently not acceptable to return some in a time of crisis. I believe we should not forget things like this. Say thank you in a way that gets their attention.

UAW faces deeper cuts to clinch auto rescue
November 26, 2008 - 12:01 am ET


DETROIT (Reuters) -- The union contract hailed as the deal to save Detroit automakers a year ago is in danger of coming undone in the face of the industry's push to secure the federal bailout it now sees as its best bet to survive.

The centerpiece of the historic UAW contract, the creation of a trust to take over the estimated $80 billion retiree health care liability of the Detroit 3, seems certain to be re-examined as General Motors and its rivals seek government aid to survive a brutal downturn in car sales.

UAW President Ron Gettelfinger said the creation of that Voluntary Employee Beneficiary Association -- or VEBA -- trust would safeguard retiree health care for 80 years.

Wall Street analysts, meanwhile, hailed the deal as a game-changer for Detroit, one that could level the playing field with competitors led by Toyota Motor Corp.

But with GM running short of cash and pleading for a share of a $25 billion federal bailout, the UAW faces increasing pressure to accept concessions that would rewrite provisions for funding the VEBA even before it takes effect from 2010.

Those are likely to include a more limited payout for the VEBA health care trust, which could imply reduced benefits for future retirees. The union will also face pressure to abandon a "jobs bank" program that pays wages to laid-off workers.

"They have got to make some adjustments to the VEBA, because there is no way they can afford to make those payments," said Erich Merkle, a Crowe Horwath consultant.

A UAW spokesman was not available for comment.

With automakers seeking a rescue and sales at 25-year lows, analysts expect GM, Ford Motor Co. and Chrysler LLC to present revised restructuring plans designed to show executives, creditors and factory workers accepting new sacrifices.

Cutting or eliminating the "jobs bank" where idle workers may receive nearly full pay and benefits for up to two years, and deferring or reducing payments to the VEBA are two avenues of likely union concessions, analysts said.

"After the federal government, this is a most likely source of liquidity to help tide them over," Fitch Ratings managing director Mark Oline said of the VEBA.

Gettelfinger has said broad changes to the VEBA are not being considered, but analysts believe the union would be willing to make some compromises.

TRICKY

GM, Ford and Chrysler collectively have pledged about $48 billion to the VEBA fund through transfers of current trusts and future payments to cover a share of the liabilities.

"I don't think the UAW is going to be a challenge here," IHS Global Insight analyst Aaron Bragman said. "You will see them come back with even more concessions, because they realize the alternative is that they are all out of a job."

In July, the UAW allowed GM to defer $1.7 billion of payments for the VEBA for two years -- in exchange for a note paying 9 percent interest.

The fact the union and the automakers have had a federal court certify the VEBA agreement could make changes difficult, but not impossible. The deal would be "tricky to renegotiate, but that doesn't mean it is off-limits," Standard & Poor's credit analyst Gregg Lemos Stein said.

"In this environment, we don't think it would be an insurmountable challenge," he said.

S&P expects GM and Chrysler to run short of cash by early in 2009 without a market improvement it does not expect, or external support. Ford has until mid to late 2009.

WHITHER THE JOBS BANK?

While the jobs bank has been a lightning rod for controversy and seized as a symbol of Detroit's excess, the 2007 contract sharply curtailed the program. The Detroit-based companies are also not the only ones to pay idled workers.

Both Toyota Motor Corp. and Honda Motor Co. have retained idled U.S. workers during plant closures this year -- Toyota at its Texas truck plant and Honda in Alabama and Ohio.

"I think the jobs bank for sure has to go," Merkle said. "Even if it didn't cost them anything, there is a problem of political appearances, and it's very hard for anyone outside the auto industry to understand."

JP Morgan analyst Himanshu Patel expects "shared sacrifice" to be a major theme, whether part of an immediate bailout of the U.S. auto industry or a more comprehensive plan that takes shape under the Obama administration.

"Such multi-party concession deals take months, not weeks, to negotiate," Patel said in a note to clients.

Setting up GM to operate profitably in a much weaker U.S. market will require UAW concessions on the VEBA, jobs bank and a cut in wages and benefits for active workers, Patel said.

Gregg Shotwell, now a GM retiree and a persistent critic of the UAW leadership as a union member, said he expected the jobs bank to be eliminated and VEBA reduced. He believes UAW workers are resigned to the changes.

"We warned that the VEBA was not bankruptcy-proof and now it is looking shaky, and I'm one of these guys depending on the VEBA," Shotwell said.