Can the Auto Industry Bailout Fix Car Stocks?
Over the weekend, I attended the Daytona 500. It’s an awesome site to see those cars zoom around the track at top speeds. Unfortunately, I’m afraid that the heyday for American car companies has long since passed. It’s hard to overstate the mess that the car companies are in. First, there’s the power and influence of the labor unions. As part of General Motors’ (GM) loan from Uncle Sam, it had to shut down its jobs bank. This was a program that paid laid-off workers their full salary even if they weren’t on the on the assembly line! I’m sorry but I don’t how that can be justified in a company that’s hemorrhaging billions of dollars. In my opinion, if the UAW wakes up and realizes that it can’t restore the jobs bank, then there’s hope for real concessions that will help lower GM’s labor costs. Chrysler, for its part, is going down a more creative route. The company may be getting some help from Fiat. The Italian car company has had an impressive turnaround so they’re worth pay attention
