Saturday, December 13, 2008

Kudlow says UAW not GOP to blame

In the continuing saga of who is to blame, is this piece by Larry Kudlow, who suggests the answer to the question, Who's Losing the U.S. Car Business? Is the UAW:

If Sen. Corker's plan had prevailed, with UAW support, many believe it would have had 90 votes in the Senate. GM could have gone forward with a clean-as-a-whistle balance sheet under a three-part restructuring plan that included a $60 billion bond-refinancing cram-down, a renegotiation of the $30 billion VEBA health-care trust, and a pay-restructuring plan that would put Detroit compensation levels in line with those of foreign transplants Honda, Toyota, Nissan, and BMW.

Average compensation for the Detroit little three is $72.31. Toyota's average wage is $47.60, Honda's is $42.05, and Nissan's is $41.97, for an average of $44.20. So Corker's idea was to bring that $72 a lot closer to that $44. (Corker notably knocked out Korean carmaker Kia, which has super-low wages.)

That's what I believe is adding to the confusion on this issue by the American public, the media, the government and the various experts can not seem to agree on what plan, if any plan, mutually agreeable.

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