America, You Asked For It!

Political News and Commentary from the Right

UAW wins, everyone else loses

GM and Chrysler, in a concerted effort with the Obama administration, are destroying Americans’ lives by colluding with the government to seize and redistribute private property–not to protect consumers, not to ensure fair competition, but to reduce competition as a means to protect the UAW and artificially prop up their already overpriced products.

GM’s own North American sales chief  recently stated “Too many dealers, in actuality, is not the problem.  We’ve got too little industry and too little sales we have to contend with.”  Yet, GM informed more than 1,100 dealers their rights to sell the company’s products will be stripped from them next year and Chrysler axed almost 800 dealers effective next month.

George C. Joseph, President and owner of Sunshine Dodge-Isuzu in Melbourne, FL, gave a 1st person account of suffering being imposed on Main Street America by the failed, soon-to-be-government-owned Detroit automakers.  He explains how he and his family have devoted their lives to his profitable dealership since they first purchased it in 1974.  When Chrysler recently demanded he renovate the dealership, Mr. Joseph financed the multi-million upgrade with the understanding that he would continue to represent the now nationalized company.  He owes $3 million on his new car inventory and holds $300,000 worth of Dodge parts in inventory.  Joseph’s family and the families of his 50+ employees have staked their futures on a relationship with Chrysler.

To the new management at Chrysler–the Obama administration–none of this matters.  The new government/UAW-owned Chrysler makes no offer to purchase Joseph’s inventory, his business, or even make good on the renovation loan.  In short, he’s being thrown to the wolves.  His business is effectively being seized by a US government-UAW cooperative and handed to a dealer down the street who will now be able to charge his customers more.  Joseph and his employees will lose their livelihoods, many forced into bankruptcy so the new nationalized Chrysler can charge more for it’s unpopular products.

Pure and simple, this is payback to the UAW for its support of Obama in the presidential election last year.

Since GM and Chrysler first came begging the government for help last year, Americans have overwhelmingly insisted the UAW make serious concessions.  Instead, the President has given the union a disproportionate stake in the companies for the money it was owed versus bondholders whose debt was guaranteed.  Last month, the administration-brokered deal reached by the UAW and Chrysler grants the union a 55% stake in the company.  Using the bailout money received by the banks as leverage, the executive branch forced bondholders to take about 30 cents on the dollar for their debt with no equity stake in the company.

The UAW can’t even run a golf course, but Obama handed it the keys to the boardroom of Chrysler–to the detriment of Wall Street and Main Street.

Is this the change America voted for?  A government that subsidizes failed companies and institutions by seizing or destroying their successful competition. 

It’s the change we got.


Hat tip–American Thinker

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May 24, 2009 - Posted by | Socialism | , , , , , ,

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