Automakers Seek Federal Help, But Not 'Bailout' in Meeting With Bush

[Logan13]

Can anyone give me 2 reasons why healthcare premiums have gone through the roof?

Automakers Seek Federal Help, But Not 'Bailout' in Meeting With Bush
AP
Nov. 14, 2006
WASHINGTON — Auto industry leaders plan to stress in a White House meeting that they are not seeking any federal bailout, but want support on health care and trade issues that affect large manufacturers.

President Bush will meet Tuesday with General Motors Corp. Chairman and Chief Executive Rick Wagoner, Ford Chief Executive Alan Mulally and Tom LaSorda, President and Chief Executive Officer of DaimlerChrysler AG's Chrysler Group, in a gathering that has been delayed since last spring.

Auto industry leaders plan to tell Bush they do not want a bailout similar to the 1979 measure approved by Congress that helped preserve Chrysler Corp. Instead, they will discuss the spiraling costs manufacturers face on health care, the advantages Japanese automakers have because of a weak yen and their work to develop alternative fuel vehicles.

"We're not going into this meeting seeking specific relief for our industry," said GM spokesman Greg Martin. "We understand that we have to win in the marketplace but there are issues of national importance like health care and trade that affect the competitive balance."
All three automakers spend more on health care per vehicle than steel, which adds about $1,000 to the cost of a car built by the Big Three. GM, the nation's largest private provider of health care, spent $5.3 billion on health care last year for 1.1 million employees, retirees and their dependents.

Wagoner urged Congress last summer to provide a "vigorous and robust" prescription drug market, develop national health information technology and focus on high-cost, catastrophic cases among a small number of patients.

The automakers have also sought support on trade, arguing that Japan's weakened yen makes imported goods from Japan cheaper. Auto industry officials also noted that China is keeping its currency artificially low against the dollar, making Chinese goods cheaper in the U.S.

"It's just so important that the governments around the world ensure that the market sets exchange rates," Mulally told the Detroit Free Press editorial board last week.

Bush is meeting with Japanese Prime Minister Shinzo Abe on Saturday in Vietnam. Kevin Reale, research director for Boston-based AMR Research, an industry consulting company, said the proximity to the meeting gives automakers the chance to urge Bush to discuss "how to level the playing field on how it relates to currency."

Sen. Carl Levin, D-Mich., said Monday the Bush administration needs "to understand — and I hope the Big Three will be blunt and direct with the administration — that their competitors are not companies overseas. Their competitors are countries overseas."

The industry shares many of the same views as Bush on alternative energy. The Big Three are doubling their production of flexible-fuel vehicles, capable of running on blends of up to 85 percent ethanol, by 2010.

The companies have faced hardships while Japan-based Toyota Motor Corp. is enjoying soaring profits. A report in The Wall Street Journal on Monday said Toyota plans to capture 15 percent of the world car market by 2010 in its quest to unseat GM as the world-largest automaker.

Ford, the nation's second-biggest automaker, posted a $5.8 billion third-quarter loss — its largest in more than 14 years — while GM reported a loss of $91 million in the third-quarter, a sign of improvement after posting a $1.6 billion loss during the same period last year.

Chrysler Group had a $1.5 billion third-quarter loss, but it was helped by profits at its parent company DaimlerChrysler.

GM and Ford are both engaged in large downsizing plans. GM has persuaded about 35,000 hourly workers to leave the company under early retirement or buyout plans and Ford has offered buyouts and early retirement packages to all 75,000 U.S. production workers. Ford hopes to reduce its hourly work force by 25,000 to 30,000 and is expected to shutter 16 plants.

Bush drew some flak in Michigan when he told the Wall Street Journal last January that automakers need to manufacture "a product that's relevant." White House spokesman Tony Snow said Monday that Bush would "express his support for the American auto industry" and "listen to their concerns."

The meeting was tentatively planned for last May when the Big Three executives met with congressional leaders, but it was postponed because of scheduling conflicts. Attempts to reschedule last summer were unsuccessful.

[biglouie250]

unions were great in the 1800's now they promote lazyness and bankrupt corporations. unskilled labor doesnt have a divine right to anything including healthcare, down with unions.

[Logan13]

unions were great in the 1800's now they promote lazyness and bankrupt corporations. unskilled labor doesnt have a divine right to anything including healthcare, down with unions.

Correct, the harder they push the more that these companies just say fuk it and move business south or overseas.......

[Tock]

unions were great in the 1800's now they promote lazyness and bankrupt corporations. unskilled labor doesnt have a divine right to anything including healthcare, down with unions.

I've seen plenty of lazy people in non-union companies, and I've seen plenty of non-union companies go bankrupt. On the other hand, union companies like UPS are chuck full of some of the hardest-working people I've ever seen, and they're profitable.

Truth is, lousy management is the primary reason why companies go bankrupt (is there any reason why GM, Ford, and Chrysler can't do what Toyota is doing?). And, lousy management is the primary reason why companies end up with unions. Speaking as a stockholder of several corporations, I'll have to say that there's no possible way that company CEO's are worth multi-million $$$ salaries on top of multi-million bonuses. There's no possible way that company big-wigs are worth the golden parachutes they've set up for themselves -- they can screw up their companies, drive them into debt, and when they get fired, they leave with multi-million $$$ severance payments.
Seems to me, that if the company officers are gonna get big $$$ for their services, then the folks in the trenches should get their turn feeding at the trough, too.

Ya, sometimes unionized employees get out of hand, but sometimes the managers do, too. And when they do, the employees need a way to protect their interests.

Viva Unions!

[Tock]

Bush drew some flak in Michigan when he told the Wall Street Journal last January that automakers need to manufacture "a product that's relevant." White House spokesman Tony Snow said Monday that Bush would "express his support for the American auto industry" and "listen to their concerns."

Well, if US automakers won't make stuff people want to buy, then tough for them.
And that, mes petites, would be a management error, not a union error.

[Tock]

Can anyone give me 2 reasons why healthcare premiums have gone through the roof?

1) Bush and congressional Republicans have passed laws making buying cheaper prescription drugs from Canada illegal. So folks are obliged to buy overpriced prescription drugs from US pharmacies, and when our insurance companies pay the tab, they have to raise premiums to pay for the extra costs.

2) Inventing and paying for advanced medical technology is expensive. MRI's aren't cheap, and somebody's gotta pay for 'em.

There are two reasons. Now what do you want -- egg in your beer?

[Logan13]

1) Bush and congressional Republicans have passed laws making buying cheaper prescription drugs from Canada illegal. So folks are obliged to buy overpriced prescription drugs from US pharmacies, and when our insurance companies pay the tab, they have to raise premiums to pay for the extra costs.

2) Inventing and paying for advanced medical technology is expensive. MRI's aren't cheap, and somebody's gotta pay for 'em.

There are two reasons. Now what do you want -- egg in your beer?

1) Has absolutely nothing to do with healthcare premiums, as Clinton did not legalize this either, nor has it ever been an issue until recently. It isn't as though these cheap Canadian drugs have been at our disposal for the last 30 years and than Bush outlawed them, let's be real.
2) Technology, R&D, has always played a part in healthcare premiums, that has not changed.

How about:
A) Malpractice insurance has gone through the roof thanks to ambulance chasing lawyers.
B) The uninsured. The services given to these people has to be paid by someone. It is against the law to deny medical attention to anyone even if they have no insurance, as it should be. It has gone up in the recent 5-10 years thanks to 12-20 million additional uninsured individuals (i.e. illegal immigrants).
C) The number of older Americans has risen sharply in the past 5 years due to the Baby Boomer generation. Older Americans require more medical attention.
D) Americans have become fat and lazy. Over 65% of the population is obese. We smoke too much, eat too much, and exercise too little. Unhealthy individuals require more medical attention.

Ideology will not solve problems as it is just the banter of the uninformed....

-Logan13

[Tock]

I disagree with you on 1 & 2, but agree on a, b, c, and d.

There are lots more reasons why health insurance has become more expensive.

[Logan13]

I disagree with you on 1 & 2, but agree on a, b, c, and d.

There are lots more reasons why health insurance has become more expensive.

I know that we have all heard about Walmart selling generic drugs at $4, but today alot of the blogs are saying that Walmart will go one further in regards to healthcare. Rumor has it that they will be having Family medical clinics in or around their store. Facts are unclear, but it seems that they will offer to pay off tuition bills for 3rd year med. students in exchange for 4 years service at around $50,000/year. The reason that I find this exciting is that although we live in a Capitalistic society, our healthcare system is most definitely NOT taking part in Capitalism. With capitalism will come more competitive pricing, and will hopefully bring an end to these crazy premiums.