Detroit's Secret Plan

If you are baffled at how GM and Ford can rack up a combined annual loss of more than $50 billion and still call themselves viable without making drastic changes, don’t be. They have a secret plan.

Whatever rhetoric you hear from Detroit and Washington, don’t believe it.

The UAW has no intention to give up its contract. Why should they? This was bargained in “good faith.” (Some might argue that the threat of a strike is not good faith, but the fact is: both sides agreed to this deal.)

Management seems more intent upon joining the Washington bread line than fixing the fundamental flaws in its operations.

Here’s why. Detroit and Washington have a secret plan and it has two parts.

Nationalized health care. This will transfer the burden of Detroit’s massive health care costs for current and former workers to the American taxpayer.

Force their competition (Toyota, Nissan, Honda, BMW, Daimler, etc.) to join the UAW. This will level the cost field, as Detroit’s competition will have the same labor costs. It will also drive car prices up another $2,000.

This is why Detroit seems content upon taking handouts from Washington.

The Clinton’s made a strong push to nationalize health care during Bill’s first term. This attempt failed dramatically. Obama made it a central part of his platform, although he couched it in different words. The new administration will not hit us with it like the Clintons did, it will be presented as simply part of “the great solution” to our national ills. I see this as virtually inevitable. Whether it is the best thing for our nation will be debated for decades. Only time will tell.

With the rapid evolution of Socialistic thinking in America (the belief that government can solve everything—witness AIG, Lehman, Citi, Countrywide, Fannie & Freddie, etc.) it is a now just a small step to the next level. The Fed and Congress have poured trillions into failing companies and they (Congress) will soon explain that it is “far more efficient” to have single-payer health care. It is good for the country. Reminds me of the joke about the Canadian health care system: There is a ten month waiting list for a maternity bed.

Under current law, voting by employees deciding whether or not to unionize is a private matter. Votes are counted, with no one knowing how anyone votes. There is a bill that is making its way through Congress that will force “open voting” when company employees choose whether or not to join unions. This will place enormous pressure on those voting not to join unions. Many of us have seen how this can happen. I have seen (and felt) this myself. Should this bill become law, it will take little time for auto industry wages and benefits in right-to-work states to skyrocket.

Problem solved. Detroit is competitive again. Auto workers keep their substantial six figure jobs. They keep their benefits and their marvelous pensions. While you and I pay more in taxes and more for our cars.

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