If you happen to read my blog on a regular basis you are well aware of my feelings surrounding government bailouts for the automotive industry. If you don’t happen to stop by on a regular basis, let me recap: I believe a bailout of the U.S. automotive industry is one of the biggest wastes of money possible.
For years now, U.S. car companies poorly managed just about every aspect of their business – product lines, corporate image, customer satisfaction and labor management – yet they claim the current economic environment caused their misfortunes. Sorry, not the case…
That said, I cannot believe the arrogance displayed by Chrysler president Thomas LaSorda on 3/10/2009.
Chrysler LLC threatened last night to pull the company’s production out of Canada – a move that would throw 9,000 employees out of work – unless governments here provide $2.3-billion (U.S.) in loans and its Canadian union agrees to slash labour costs by 25 per cent.
At a parliamentary committee hearing last night, Chrysler president Thomas LaSorda said the company would commit to maintaining roughly a quarter of its North American production in Canada if its “needs” are met.
“The current success and long-term viability of Chrysler’s manufacturing operations in Canada is very much dependent on three critical factors,” said the Detroit-based executive, who grew up four blocks from the firm’s Windsor plant where his father, Frank, worked and was union president.“Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive relative to other automotive jurisdictions.”
Essentially, Chrysler is telling the Canadian parliament “Give us $2.3B or else!” How does such a demand NOT equate to corporate blackmail? It is quite clear that Chrysler is not committed to protecting jobs in Canada as the corporation slashed a number of positions over the last two years and plan on more cuts in the future.
Not to beat a dead horse, but the market has spoken regarding the survival of Chrysler and GM. While I feel for those working at Chrysler Canada, these companies should fail.
In no way should any company be allowed to hold a government hostage due to their mismanagement. The continued support in the form of bailouts will only send the message to large organizations that a do “do what you wish, the tax payer will catch you” mentality is acceptable in business.
It’s not.
Related posts:
- Contradictions from Chrysler Internal confusion seems to be the topic of the day...
- Chrysler files bankruptcy court motion to eliminate 789 of its 3,200 US dealerships Chrysler came out today and said they are closing down...
- Chrysler cuts powertrain warranty to five years Several days back I caught wind of this story but...
- Fiat sticks to its guns, will see through the Chrysler purchase On Monday Supreme Court Justice Ruth Bader Ginsburg put the...
- Is this the last week for General Motors as we know it? The June 1st, government imposed, deadline for a General Motors...
Related posts brought to you by Yet Another Related Posts Plugin.