Archive for December 19th, 2008

Bush wimps … punts automakers to Obama … UAW celebrates

December 19, 2008

An “orderly, pre-packaged reorganiztion” didn’t make the cut after all.

Instead, Bush just cut a check, loaning GM and Chrysler $17.4 billion to bridge them through the end of January. 

The “teeth”: companies have to promise to try harder.  Just kidding, that’s not even a requirement as near as I can tell.  No restructuring of overhead; UAW workers will still get $150,000 to work the line.

Bottom line: Bush got freaked that the sky would fall and didn’t have the stones to push the UAW to reopen the gold plated contract. Geez.

PS: the politics of this move are interesting …

Full article:
http://online.wsj.com/article/SB122969367595121563.html?mod=testMod 

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Bush considering "orderly" auto bankruptcy … (for the already bankrupt automakers)

December 19, 2008

Excerpted from AP, Bush considering “orderly” auto bankruptcy, December 18, 2008

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The Bush administration is seriously considering “orderly” bankruptcy as a way of dealing with the desperately ailing U.S. auto industry.

The White House was close to a decision …  on an auto rescue plan …  and is continuing discussions with the various sides that would have to sign on to a managed bankruptcy — entities such as labor unions and equity holders in addition to the companies themselves.

Full article:
http://finance.yahoo.com/news/Bush-considering-orderly-auto-apf-13868234.html

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Ken’s Take:

  1. The automakers already are bankrupt.  The new news is trying to do something orderly.
  2. Didn’t the Detroit CEO’s say that the sky would fall before Christmas?
  3. Hard to believe that UAW folks will still be drawing over $70 per hour when the auto plants are closed.  Can’t the automakers at least redeploy the workers to infrastructure projects for the month?  Guess not — union work rules.
  4. Wouldn’t surprise me if Bush played rope-a-dope until he hands the keys to Obama …

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As Detroit burns (figuratively), UAW gets a paid vacation …

December 19, 2008

When Chrysler plants are idled because they are not making vehicles, Chrysler is still required to pay its UAW workers 95 percent of their wages.
http://voices.washingtonpost.com/economy-watch/2008/11/corker_uaw_should_not_be_paid.html?hpid=topnews

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From Band-Aid to K-Y: The Power of Green Packaging

December 19, 2008

Excerpted from Ad Age “J&J’s Green-Packaging Rebirth Proves Power of Smart Design” by Teressa Iezzi, November 3, 2008 

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AIGA, “the professional association for design,” held a conference bringing together an interesting range of voices from design, branding and culture…One of the featured speakers was Chris Hacker…design officer at Johnson & Johnson…

Hacker’s…presentation took a look at the reinvention of the design process at the package-goods giant and how design has resulted in a major win for J&J’s bottom line as well as for the environment.

J&J had acknowledged over the years that while the company did a lot of things very well, product design was not one of them. That bit of reality was thrown into alarming relief one day when during a meeting with Target, Goggins was told that if J&J didn’t “get its design act together,” it would lose position in stores…

The company didn’t have in-house designers in the consumer-products group. All design decisions were made by “the left hand”…typically by the most junior marketing people…who tended to move around every 18 months or so. They worked with outside design consultants, and all projects were handled separately, without a unifying vision.

When Hacker joined, he set up a design office…The new design discipline (which includes working with outside designers) has resulted in a number of successful product rebirths and a new focus on sustainability for the company.

Among the product stories: a sales-inducing facelift for the iconic Baby Shampoo packaging, new Band-Aid packaging and a streamlined first-aid kit, and an all-out redesign of K-Y, with more intimately oriented packaging and the addition of the K-Y Yours & Mine…

Hacker described sustainability at a company J&J’s size as “a journey.” It starts with packaging-weight reduction and the use of recyclable and certified materials; biodegradability and reusability are the next step. He says, for example, when he joined the company, Band-Aid packaging was made mostly in Brazil from “unknown source” material. He moved to Forest Stewardship Council-certified paper; post-consumer recycled paper will follow. The Aveeno brand has also moved in part to post-consumer materials and will continue to do so.

Will the design and sustainability journey be slowed by the current economic conditions? “Recession is exactly the reason we need to be doing what we’re doing,” he said. “It’s cutting through the chaos of everything that’s going on.”

Edit by SAC  

Full article:
http://adage.com/columns/article?article_id=132145

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