MichiganTruck_Mafia Posted December 19, 2008 Share Posted December 19, 2008 The Bush administration will offer General Motors and Chrysler loans totaling $17.4 billion in return for strict conditions mirroring those proposed by Senate Republicans last week. Those terms include not only the conditions agreed to by congressional Democrats, but new limits sought on the UAW contracts including matching wage and benefits of foreign automakers with U.S. plants by the end of next year. http://www.freep.com/article/20081219/BUSINESS01/81219021 Quote Link to comment Share on other sites More sharing options...
Twincam Harley Posted December 19, 2008 Share Posted December 19, 2008 http://www.freep.com/article/20081219/BUSINESS01/81219021 Why did you leave out the final sentence that states, "The administration could, however, waive those targets for good reason." ???? Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 19, 2008 Share Posted December 19, 2008 Why did you leave out the final sentence that states, "The administration could, however, waive those targets for good reason." ???? which would be Obamas administration at that point. Quote Link to comment Share on other sites More sharing options...
Twincam Harley Posted December 19, 2008 Share Posted December 19, 2008 White House fact sheet on auto rescue Fact Sheet: Financing Assistance to Facilitate the Restructuring of Automobile Manufacturers to Attain Financial Viability Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing. Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds. Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury. Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan. Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including: • Firms must provide warrants for non-voting stock. • Firms must accept limits on executive compensation and eliminate perks such as corporate jets. • Debt owed to the government would be senior to other debts, to the extent permitted by law. • Firms must allow the government to examine their books and records. • Firms must report and the government has the power to block any large transactions (> $100 M). • Firms must comply with applicable Federal fuel efficiency and emissions requirements. • Firms must not issue new dividends while they owe government debt. Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including: • Reduce debts by 2/3 via a debt for equity exchange. • Make one-half of VEBA* payments in the form of stock. • Eliminate the jobs bank. • Work rules that are competitive with transplant auto manufacturers by 12/31/09. • Wages that are competitive with those of transplant auto manufacturers by 12/31/09. These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations. In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009. * VEBA is the union-run voluntary employee benefit association that was to assume responsibility for retiree health benefits, with contributions from the automakers. Quote Link to comment Share on other sites More sharing options...
kpc655 Posted December 19, 2008 Share Posted December 19, 2008 White House fact sheet on auto rescue Fact Sheet: Financing Assistance to Facilitate the Restructuring of Automobile Manufacturers to Attain Financial Viability Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing. Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds. Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury. Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan. Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including: • Firms must provide warrants for non-voting stock. • Firms must accept limits on executive compensation and eliminate perks such as corporate jets. • Debt owed to the government would be senior to other debts, to the extent permitted by law. • Firms must allow the government to examine their books and records. • Firms must report and the government has the power to block any large transactions (> $100 M). • Firms must comply with applicable Federal fuel efficiency and emissions requirements. • Firms must not issue new dividends while they owe government debt. Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including: • Reduce debts by 2/3 via a debt for equity exchange. • Make one-half of VEBA* payments in the form of stock. • Eliminate the jobs bank. • Work rules that are competitive with transplant auto manufacturers by 12/31/09. • Wages that are competitive with those of transplant auto manufacturers by 12/31/09. These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations. In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009. * VEBA is the union-run voluntary employee benefit association that was to assume responsibility for retiree health benefits, with contributions from the automakers. The downward spiral continues. At least they dropped their demand that auto companies stop their lawsuits against state level CAFE requirements. Quote Link to comment Share on other sites More sharing options...
hanginon Posted December 19, 2008 Share Posted December 19, 2008 This is wonderful news in these difficult times. The aid is necessary and welcomed but I think that it is important that everyone read between the lines>>> Based on the wages having to be "adjusted" by Dec 2009 equivalent to the "transplant wages" it is clear who is running the show...if you aren't sure - let me break it down... Retail - dominated by the Chinese Auto - dominated by the Japenese - oops sorry - transplants Oil - dominated by the Saudis What do we have that is ours? The business man has sold our souls for a quick buck (thank you Wal-Mart) and now we are paying with interest. How do we strengthen a nation (Canada and the US), and save our economy when we are being controlled like puppets on a string? In Canada we need a Prime Minister with a backbone and in the US, I can only pray Obama brings the US jobs back from overseas and have the transplant companies pay transplant fees - including equal imports - we send to them the same amount that they send to us...none of this where our exports to them are only 3% of what is being imported here. If the transplant companies decide to drop their wages to $10 in 2009 - which wages have to be matched? And since it seems to be popular to kick the little guy while he is down I just have one question - if the labour wages represent only 8% of the operating expenses...where is the rest of the money going? The labourer loses his health, food, homes and stability because they are losing their jobs and wages while the corporation loses AIRPLANES? There is definitely something wrong with this picture. And there will NEVER be a reason good enough for the "administration to waive (these or any of the) targets." Quote Link to comment Share on other sites More sharing options...
fordguy61mi Posted December 19, 2008 Share Posted December 19, 2008 I thought the UAW turned down the "wage Adjustment" part of the plan when the Senate killed it. It seems nothing has changed. Does anyone know what the UAW's response to this news is? Quote Link to comment Share on other sites More sharing options...
Griffin Posted December 19, 2008 Share Posted December 19, 2008 So looking at this so called aid package, I call it nothing more than prop by bush and the rest of his cronnies to make themselves look good and not viewed as the administration that allowed the auto industry to die. Come March should the Big3 not meet the terms of this loan and fail, the government can say "WE DID OUR PART". As well if you read the UAW is now on the hook to grant major concessions or they will be blamed for the failure. Quote Link to comment Share on other sites More sharing options...
Bodhibkb Posted December 19, 2008 Share Posted December 19, 2008 :shades: Looks like you guys at assembly will be working for non-core wages like the rest of us sooner than I thought. Sorry to hear it. I knew it was coming...I just didn't know it would happen this soon. I sure didn't think the government was going to get involved. Don't worry living on 1988 wages and worst benefits ain't so bad...you'll get use to it. Wish we all could stick together better. :titanic: Quote Link to comment Share on other sites More sharing options...
MichiganTruck_Mafia Posted December 19, 2008 Author Share Posted December 19, 2008 Why did you leave out the final sentence that states, "The administration could, however, waive those targets for good reason." ???? Not the current administration.... Quote Link to comment Share on other sites More sharing options...
KTPT Posted December 19, 2008 Share Posted December 19, 2008 This is all subject to change when Obama is in office. Quote Link to comment Share on other sites More sharing options...
010300 Posted December 19, 2008 Share Posted December 19, 2008 Why are we (as in Ford) affected by this? We're not getting any money from the bailout... Quote Link to comment Share on other sites More sharing options...
Griffin Posted December 19, 2008 Share Posted December 19, 2008 We are affected because the government wants is from the UAW, you are a member of the UAW and hence any concessions on wages agreed by GM and Chrysler will have a spill over affect to Ford. As well for Ford to if they need too, tap any government money would have also meet the conditions put out by bush. Quote Link to comment Share on other sites More sharing options...
MichiganTruck_Mafia Posted December 19, 2008 Author Share Posted December 19, 2008 Why are we (as in Ford) affected by this? We're not getting any money from the bailout... Pattern bargaining. Whatever GM/Chrysler gets, Ford will as well. Quote Link to comment Share on other sites More sharing options...
fordguy61mi Posted December 19, 2008 Share Posted December 19, 2008 There was a time (and not so long ago) when pattern bargaining was beneficial to us. Now it looks like it's going to come back to bite us in the ass! Quote Link to comment Share on other sites More sharing options...
flint Posted December 19, 2008 Share Posted December 19, 2008 Pattern bargaining. Whatever GM/Chrysler gets, Ford will as well. doesn't the membership get to have a say/vote in some of these concessions???? We have in the past when the contract was re-opened. Quote Link to comment Share on other sites More sharing options...
wildosvt Posted December 19, 2008 Share Posted December 19, 2008 The downward spiral continues. At least they dropped their demand that auto companies stop their lawsuits against state level CAFE requirements. The are demanding that the auto companies stop their lawsuits. Meaning there will be a cluster fuck of CAFE standards across the nation. NOT a good thing. Quote Link to comment Share on other sites More sharing options...
livonia1 Posted December 19, 2008 Share Posted December 19, 2008 Is this calling for caps on executives pay or will it call for their pay to be on par with the transplants??? Will the management structure be changed to that of the transplants??? I'll just bet this is why the plan was pushed through before Obama got in. I sure hope the UAW gets that cleared up and out in the open. Quote Link to comment Share on other sites More sharing options...
mechanic Posted December 19, 2008 Share Posted December 19, 2008 there a lot of reasons to look at this as good news. the final details will be worked out by a new administration we are already close to the jap plants on wages. a new round of buyouts, and new hires at lower wages would average the cost in at an acceptable level with no major cuts. ford is not in the picture yet and has already said they will not ask bond holders for concessions, if they don't do that, then they can't ask for federal money gm still has a lot of archaic work rules, we got rid of most of those in the last few years. we get to vote on it, just say no. pattern bargaining does not apply when one company is healthier than the others, chrysler took pay cuts in the 80's bail out and no one else did. Quote Link to comment Share on other sites More sharing options...
kpc655 Posted December 19, 2008 Share Posted December 19, 2008 The are demanding that the auto companies stop their lawsuits. Meaning there will be a cluster fuck of CAFE standards across the nation. NOT a good thing. I thought they dropped that. That sucks..on top of certfying 13 different types of fuels for every engine/vehicle combination now we'll have 50 different standards. brillian Quote Link to comment Share on other sites More sharing options...
Fatso Posted December 19, 2008 Share Posted December 19, 2008 (edited) President elect Obama is gonna beat junior`s azz with a shoe.Obama should create a comitte to investigate all the fraud on Wall Street and put some 'high class' friends of Bush JUNIOR in prison.I wish they would just SAY IT.How much money do the foreign transplants pay per hour for production?Trades?SAY IT in $$$$$$$ so we all know what the hell the beaurocrats are talking about. Edited December 19, 2008 by Fatso Quote Link to comment Share on other sites More sharing options...
Pumpmaster Posted December 19, 2008 Share Posted December 19, 2008 The are demanding that the auto companies stop their lawsuits. Meaning there will be a cluster fuck of CAFE standards across the nation. NOT a good thing. It's true, bro, that the CAFE standards have affected the D3, especially in trucks. Having said that, I: 1) understand that places like California, esp. L.A., need pretty strict tailpipe emissions ( I love L.A.; plus---I want us to be able to sell the Angelinos some ridez!) 2) Think ALL manufacturers need to play by the same rules: fuel economy and tailpipe emissions, too (Tundras & Titans as well as our MT TOTY F-150!). And with vehicles like this: http://www.latimes.com/business/la-fi-neil...0,1742816.story, we can compete w/ anybody (and yes, the Fusion needs to be made in the U.S.). Peaceout. Quote Link to comment Share on other sites More sharing options...
the new eye Posted December 19, 2008 Share Posted December 19, 2008 It's true, bro, that the CAFE standards have affected the D3, especially in trucks. Having said that, I: 1) understand that places like California, esp. L.A., need pretty strict tailpipe emissions ( I love L.A.; plus---I want us to be able to sell the Angelinos some ridez!) 2) Think ALL manufacturers need to play by the same rules: fuel economy and tailpipe emissions, too (Tundras & Titans as well as our MT TOTY F-150!). And with vehicles like this: http://www.latimes.com/business/la-fi-neil...0,1742816.story, we can compete w/ anybody (and yes, the Fusion needs to be made in the U.S.). Peaceout. HOW ABOUT INSTEAD OF CAFE STANDARDS EVERYBODY IN CALIF. WEAR GAS MASKS CAFE STANDARDS ARENT GOING TO CHANGE SHIT IN THE ENVIORMENT WHY DONT THEY STOP TRADING THE CHINA THATS WERE ALL THE SHIT IN THE AIR COMES FROM Quote Link to comment Share on other sites More sharing options...
end of time Posted December 20, 2008 Share Posted December 20, 2008 Pattern bargaining. Whatever GM/Chrysler gets, Ford will as well. This is just not true. I remember back when chrysler got bailed out by the govt. and the hourly workers took pay and benefit cuts. Ford and GM did not. So this just is not always true. Quote Link to comment Share on other sites More sharing options...
Makeastand Posted December 20, 2008 Share Posted December 20, 2008 This is just not true. I remember back when chrysler got bailed out by the govt. and the hourly workers took pay and benefit cuts. Ford and GM did not. So this just is not always true. You are right its not always true but if Gm and Chrysler make concession's, in todays competitive market, Ford would most likely ask us to do so as well. I would not be suprised. Quote Link to comment Share on other sites More sharing options...
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