An automaker majority owned by the UAW, or …
The United Auto Workers union would eventually own 55% of the stock in a restructured Chrysler LLC under the deal reached by the union and the automaker.
Fiat SpA “eventually” will own 35%, and the U.S. government and Chrysler’s secured lenders together will end up owning 10% of the company once it is reorganized.
http://online.wsj.com/article/SB124087751929461535.html
An automaker majority owned by the Federal government, with the UAW owning most of the rest, or …
General Motors outlined a new turnaround plan that would leave the U.S. government controlling the auto maker.
Under the plan, GM is asking for an additional $11.6 billion in government loans, on top of the $15.4 billion it has already received. It envisions giving the government at least half ownership of the company as payment for half of the loans.
At the same time, GM said it would use stock instead of cash to pay off half the $20.4 billion it owes a United Auto Workers fund to cover retiree health care. That stock would leave the union owning about 39% of GM.
http://online.wsj.com/article/SB124083476254259049.htmlhttp://online.wsj.com/article/SB124083476254259049.html
Buy a Lexus, BMW, Mercedes, or …
Hmmmm … let me think about that one for a moment
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April 30, 2009 at 10:51 am |
Perhaps the union ownership will have the result of the traditional employee stock purchase plan/stock option plan, which is to tie their compensation to the success of their work. At least it’s half way there.
…meanwhile, I’m loving my new Toyota.
April 30, 2009 at 11:25 am |
What’s amazing to me is the blatant political agenda set forth by the administration. Let me understand this….the group that is mainly responsible for the financial demise of the US automakers is now going to be rewarded with controlling ownership in one and nearly half of the other? All they had to give up were vision and dental for retirees and now have to pay $100 for emergency room visits?? Are these the “huge sacrifices” that Prez O referred to yesterday when speaking at his townhall. Seems like the votes the union organized for Prez O last fall are now paying dividends.
Meanwhile, the debt holders, whom Prez O referred to at the “money holders” who need to make sacrifices, are being asked to forgive $30B+ (for GM & Chrysler combined) for a whopping 10% stake in both companies. Seems like the administration forgets who actually ends up paying the forgiven debt.
Last, but certainly not least, have they even addressed the huge conflict of interests in having a govt (that sets regulations) and a union (that negotiates labor wages/benefits) own the largest automaker in the US? Seems like no one in the media had the stones to ask that question last night.