Originally posted by: Fern
Originally posted by: TheRedUnderURBed
If we have to bail these guys out then whatever, I am fine with a LOAN to be paid back by US taxpayers.
But why should it not be attached to a clause like "No more outsourcing".
I hear the arguments for outsourcing "to stay competitive in a global economy etc." and they got their way. And yet they still failed miserably all the time paying crap wages in Mexico and India and stuff.
And now they want US Taxpayers money? The same ones who they layed off?
Makes them seem twice as incompetent when thought of this way, not considering that other countries doing well (Japan) can afford to pay union wages to their Domestic employees.
Your thoughts? Am I off base here?
While you don't say so explicitly, I assume you are referring to the Big 3 automakers.
I also think you mean to say "I am fine with a LOAN to be paid back
TO US taxpayers.
But otherwise I think your whole premise is flawed. If there is a bailout of the automakers it will be because of the unions' political infuence, so I see no way automakers will move plants overseas. Regardless, I don't think they would move overseas anyway. If there was a valid business purpose (increased profits) they would have done it already and the foreign automakers (e.g., Toyota, BMW etc) wouldn't have established manufacturing plants here.
If you're referring to suppliers, making them replace foreign suppliers with domestic ones might have a short-term *feel good* aspect to it, but I see little prospects for any long-term benefit.
And in the short term, the Big 3 will be burdened with higher supply costs putting them at a disadvantage to the other automakers - something they don't need more of. Then, after the loan agreement expires they'll just dump the new domestic suppliers (another bailout?) and go back to the cheaper foreign suppliers.
Fern