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Obama, Harper force bankruptcy on auto parts industry

Discussion in 'U.S. Politics' started by Stalin, Jun 20, 2009.

  1. Stalin

    Stalin Active Member

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    Trillions for the wicked capitalist finance industry.

    Nothing for the auto parts industry that employs thousands of workers.

    Ain't capitalism grand !!

    "...President Barack Obama’s Auto Task Force this week rejected a request from two national organizations of auto-parts suppliers for up to $10 billion in loan guarantees. Task Force member Ron Bloom told industry representatives that Obama favors bankruptcies and the “contraction” of the industry— that is, tens of thousands of layoffs. “Consolidation for the industry needs to take place,” Bloom is reported to have said.

    The Canadian government has also rejected assistance to the industry. Currently there are about 400,000 auto parts jobs in the US, and another 100,000 in Canada. At least a third of these workers will confront layoffs within the next year or two.

    “The carnage will be occurring in the next 60 to 120 days,” said Craig Wiggins of the auto consultation firm Tooling & Capital Solutions of Tecumseh, Ontario. “It’s still going to be an abolute bloodbath.” Wiggins was involved with the loan negotiations taking place in both Washington and Ottawa.

    Neil De Koker, president of the Original Equipment Suppliers Association, said the US Treasury’s decision would likely result in “disorderly chaos in the industry.” The Motor & Equipment Manufacturers Association (MEMA) joined in the appeal for the loans. The Treasury had earlier extended $5 billion in loans and guarantees to firms in the industry that supplied General Motors and Chrysler Group LLC.

    The auto parts industry has been hammered by the national collapse in auto sales, which have declined by more than one third from last year, and the bankruptcies of GM and Chrysler, which have disrupted long-established supply chains.

    Twenty-one auto parts manufacturers have filed for bankruptcy so far this year. Among these are major concerns such as Visteon Corp., Metaldyne Corp., Noble International Ltd. and Cooper-Standard Automotive Inc., all headquartered in Michigan. An industry executive anticipates that these will now be a “rush of failures.” The manufacturers’ associations pleaded with the Obama administration, warning that without further assistance 49 major suppliers would collaspe in 2009, followed by 60 more in 2010.

    “There are a number of parts manufacturers that are virtually on the edge of being pushed into a Chapter 11 situation,” MEMA President Bob McKenna warned. “And, on the other hand, when business picks up, you’ve got to have money to invest in building those products to satisfy the market. But in an environment where nobody is lending money, particularly to the automotive industry, it’s pretty tough.”..."

    http://www.wsws.org/articles/2009/jun2009/auto-j20.shtml

    Comrade Stalin of Gori
     
  2. PLC1

    PLC1 Moderator Staff Member

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    Why didn't he figure that out before approving billions for industry bailouts?

    If he really favored bankruptcies and contraction, wouldn't he have put a stop to TARP after he was elected, instead of expanding on the idea?
     
  3. GenSeneca

    GenSeneca Well-Known Member

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    Yes, it is.

    Capitalism doesn't bailout failing business, it lets them fail so that successful businesses can take their place. We capitalists were against the bailouts from the start, it was people like you, that hate capitalism, who were pushing for the bailouts as necessary to save the jobs of the exploited workers, the innocent victims of the capitalist greed that sank the companies.
     
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