Tuesday, April 26, 2005

THERE'S HOPE FOR G.M. AND FORD

As I've ranted before, the labor contracts the morons in Detroit have agreed to for far too many years is a massive albatross around their pencil necks, especially regarding retirement benefits.

The US (meaning the US taxpayer) agreed to take over all four of United Airlines pension plans yesterday, which will presumably allow United to emerge from bankruptcy.

Given that sort of news, where's the motivation for GM and Ford execs to manage their companies' out of their current doldrums? Why not just fly them into the ground, file bankruptcy, repudiate union wage agreements and supplier contracts, and hand off the pension liabilities to the US taxpayers. Sort of an "extreme makeover" for Detroit.

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