David Kirkpatrick

December 12, 2008

Is Ford the Big One?

Filed under: Business, Politics — Tags: , , , , , , — David Kirkpatrick @ 1:26 pm

The Rust Belt bailout failed in the Senate. Looks like the union scuttled the deal. General Motors and Chrysler are prepping for bankruptcy.

From the link:

Last-ditch efforts to forge an agreement to rescue the U.S. automakers fell apart late Thursday, Dec. 11, when union officials refused fast and deep cuts in worker pay. The collapse created the real possibility that General Motors (GM) and Chrysler will face bankruptcy in a matter of weeks, unless the Treasury Dept. acts to prevent it.

Senate Minority Leader Mitch McConnell (R-Ky.) said on the Senate floor Thursday night that a refusal of the United Auto Workers, headed by Ron Gettelfinger, to agree to lower wages and benefits at parity with workers at Toyota (TM) and Honda (HMC) in the U.S. by a date certain in 2009 was the last sticking point preventing Republicans from supporting the bill.