By: Stewart Brennan
General Motors and the UAW are currently in negotiations for a labour contract which will decide who gets what when the company declares bankruptcy in four years time. GM has a 20 to 40 billion-dollar pension plan to upkeep for its retired workers, but sales are declining. I am not a banker, so someone please explain to me, how does the retired worker get his or her pension money from a company that goes bust?
What we are seeing is the last contract battle at GM. They have fallen behind the World in efficiency and evolution of the Automobile. American cars can only be sold in the USA now because of high carbon emissions from low fuel efficiency. The American made automobile will disappear when Oil prices surge due to the declining World oil reserves and increased demand by emerging economic superpowers.
The economic times ahead are bleak for the American Auto Industry. Who will purchase a costly fossil fuel dinosaur? Both sides (Management and Union) in this latest round of negotiations are battling for the last few dollars left before the ultimate GM and Ford nose dive.
I am surprised that America does not see the revolution taking place in the Auto Industry from the Japanese or German engineered / Italian design Chinese Cars! A Japanese company called Honda in 2008 will sell, what will be, the future of the automobile. The hybrid hydro car begins life on the roads in 2008. Who wouldn’t want one today, especially with the ever increasing gasoline prices?
In 2009 China will make its big North American debut with its fuel-efficient hybrid vehicles that will be thousands of dollars cheaper than the dinosaur models offered by the American car dealers. GM and Ford have missed the boat by not adapting to change and placing to much arrogant trust in an oil based economy. The USA missed a great opportunity to lead the World in new environmentally friendly technology due to the current administrations lust for a dying energy called oil. RIP GM and FORD.