Okay, I am not the smartest bulb in the pack. But I am tired of the media using this bail out of GMAC Financing to bash the UAW auto workers. This has to be seperated out so the average person can understand it.
The normal news story says that this is more money to GM, the problem with that is GM does not wholly own GMAC, confusing I know. But in a inside the office financial deal the company known as Cerebrus Capitol Management who is led by ex Bush Administration Treasury Secretary John Snow bought the controlling interest in GMAC on April 3, 2006 for 14 billion dollars, I will note that John Snow was not hired by Cerebrus until October 19, 2006
So in less than two years Cerebrus has managed to convince Congress or is it the Fed to give GMAC bank holding status to make them eligible for TARP funds just like the big boys on Wall Street.
GMAC does not make a lot of money financing cars anymore, everyone sees the commercials on TV for Ditech, the ones who change the mortgage rates daily. That is where GMAC makes their money it is not in automobiles, and it is not GM itself, this does not benefit auto workers or thier families.
So why is the media so quick to lay this on the UAW?
In 2007 also putting their hands in for more bail out money, again where are the stockholders of Cerebrus?
Cerberus Takes Over Majority Interest In Chrysler Group and
Related Financial Services Business for $7.4 Billion From DaimlerChrysler
May 14, 2007
- Affiliate of Cerberus to acquire 80.1% equity interest in new company Chrysler Holding LLC; DaimlerChrysler AG to retain 19.9%
- Obligations for pensions and healthcare costs to be retained by Chrysler companies
- Transaction expected to result in net cash outflow of $0.65 billion for DaimlerChrysler
- DaimlerChrysler's net profit according to IFRS in 2007 to be reduced in a range of $4.1-5.4 billion
- Equity ratio of DaimlerChrysler's industrial business is expected to be over 40% by the beginning of 2008
- Extraordinary Shareholders' Meeting to decide on change of name to Daimler AG
Again the UAW and the auto workers are blamed for Chryslers problems, why?
I grew up in Michigan in the late 50s and early 60s my father was a painter for GM he retired in 1963 one of the highest paid workers in the factory, he was paid 3.05 an hour. He started working for Fisher Brothers in 1924, during the depression he was let go like all of the other factory employees, he went back in the mid 30s, by 1954 he was a "quarter century club member" he was given a fancy ring with diamonds and rubies in it and given annual gifts, I have many of them, fancy card sets, gold rimmed drink glasses with the dates they were awarded.
The company doesn't do these type of awards anymore they are considered a waste of money and to expensive.
It is not the auto workers destroying the car business, it is companies like Cerebrus that are destroying them, all to get their hands in the US taxpayers pockets, again why?
Blame who you will, but it is not the auto worker.........