The PUMA Weeniemobile: Detroit nails its own coffin

Say hello to PUMA, the Personal Urban Mobility and Accessibility project from General Motors with the help of Segway. Obama doesn't think the G.M. Volt could save the company, so he "kindly" asks for a replacement project, and it's going to be PUMA. Oh yes, that's what happens when the government runs an auto company. The Volt was generating a lot of buzz, and G.M. poured so much time and money into the project, but now we have to look forward to PUMA.

Fierce sounding name, but it's just a glorified Segway. Top speed: 35 mph for 35 miles. That means commuters will have to wake up another hour early just to make it in time to the office. That is, if PUMA drivers don't get killed by SUVs and trucks first. And hoping the weather is balmy.

Seriously, nobody in Detroit would even want to drive this. Do you know how cold it gets in Detroit?

I want to see a picture of the President sitting in one of these ugly things. He ought to take the lead in endorsing this product.

General Motors is now Government Motors

There is a troubling trend in the relationship between American companies and the American government since Obama took office. Companies are failing, but also failing to enter bankruptcy, a norm in a healthy capitalist society. Rather, the federal government prefers to provide loans and inject capital into them, in turn prolonging the suffering of the firms and of the taxpayers as well. And because of these government funds, now it owns shares of companies, and is even dictating how to run them, on Wall Street and in Detroit.

The latest casualty is General Motors, once an American -- no, global -- icon. Rick Wagoner is now an ex-CEO, to be replaced by COO Fritz Henderson at the demand of the White House. Yes, you read it correctly: it's the President that's telling G.M. how to operate now. Welcome to the new Detroit, folks.

The auto industry has roots so deep in Detroit, Michigan that I wouldn't be surprised one bit if the White House starting handpicking the mayor and governor for the city and state! Heck, just annex Michigan into another federal jurisdiction! Washington, D.C. is still the capitol, but Detroit, D.C. can be where the federal government runs businesses.

Blaming Republicans, defending unions

Rose Ann DeMoro of the Huffington Post comes out swinging at the Senate Republicans, specifically their leader Mitch McConnell, in the matter of helping the auto industry. Funny title for an article: The Mitch Who Stole Christmas -- just in time for the holidays. Too bad she lacks the holiday spirit, calling Sen. McConnell "mean-spirited," "vilifying unions," and "cynical"...

Ms. DeMoro is upset over the Republicans' demand for "parity pay structure," or cutting wages and benefits for UAW laborers. She doesn't think it has anything to do with what's wrong with Detroit. Well, she's partially right -- unions share the blame with the clueless auto executives. Japanese automakers don't have to deal with excessive union contracts like G.M. has to, so naturally they can sell their cars cheaper than their American competitors. It's not about "punishing workers" as DeMoro argued, but rather staying competitive in the marketplace. And in the long run, allowing the employer to survive so the workers can still work. After all, nobody benefits from G.M. closing shop.

Being the liberal that she is, of course this has to tie into universal health care:

Or helping employers, as well as the people who work for them, by shifting healthcare coverage costs from employers to a national system like Medicare. It's one major reason why car producers have lower costs in other industrial countries which have national healthcare systems. It would also guarantee healthcare coverage for the millions of Americans who have lost, or are losing their jobs or employer-coverage in this recession, or were already uninsured.

Instead of cutting health care benefits, why not offload the obligation to a nationalized system like Medicare or some other universal health care plan. (I'm guessing she voted for Obama.) That actually sounds like a reasonable argument, but deep down it only means burdening taxpayers (including the workers) with UAW's health care bill.

No, thank you! Everybody is suffering in this recession, not just the auto workers.

But she concludes with a decent point:

During the last major Depression, we experienced a wave of union growth. A direct result was the full flowering of economic prosperity for American families and an unprecedented economic boom in the 1950s and '60s. The erosion of that dream and the shocking wealth chasm in our nation has coincided directly with the decline in union membership and the relentless attack on unions during the Bush-McConnell reign.

But let's just say that the unions of today is very different than those of the last Depression. There's nothing wrong with labor unions. In fact, it is indeed a good way for workers to organize and protect each other against injustices in the work place. However, mega-unions like the UAW, National Education Association, and American Federation of Teachers, have morphed into something sinister, something resembling political parties. And that stems from union leaders cozying up to Washington, particularly the Democrats, to stay in power and further their own agendas.

It is a shame that the UAW is getting so much negative attention in light of Detroit's troubles. Unfortunately, UAW leaders brought this unto themselves and their union colleagues for taking advantage of their employers and being a hard-headed cry-baby all these years...

UAW leaders gambling on members' livelihood

It's a high stakes game of chicken: UAW vs. the U.S. Senate, especially the Republican senators. At risk are autoworkers' jobs and billions of American taxpayer dollars. Sen. Tom Colburn (R-Okla.) blames UAW for the collapse of negotiations. UAW President Ron Gettelfinger is busy holding press conferences to make the GOP senators look bad and to encourage the White House to dip into TARP for a bailout.

You've got to hand it to Mr. Gettelfinger. It's nice to gamble with others' livelihood. It's not like he'll be out of a job if the automakers file for bankruptcy. He'll continue his stint at the UAW, continue to pour money into the Democratic political machine, and all the while pointing fingers at Washington for Detroit's destruction.

Get paid $1, get a few billion dollars in return

Detroit's Big Auto is back to Washington to present plans in order to convince Congress they are worthy of a $25 billion loan. Ford CEO Alan Mulally is even willing to work for $1 per year if the company gets the government money.

My question is, Why isn't he paid $1 already when the company has been in trouble for years?! I have nothing against lucrative executive compensation, but when the company is on the brink of bankruptcy and ready to layoff thousands of workers, the least that executives could do is take a pay cut.

GM, Ford look for handouts

There's already talk in Washington, especially among Democrats, to bailout the troubled U.S. automakers. GM and Ford may be no more if they cannot get a good-sized loan or some sort of capital infusion. GM is betting its future on the Chevy Volt all-electric car to come out in 2010, but the automaker may not make it through next year. That's how bad they are...

Let's face it. These U.S. automakers are in the shape they are in now mainly because of bearing the burden of labor unions like UAW. Hundreds of thousands of employees could lose their jobs if the companies go under, but maybe that's what's needed to get Detroit back on track. The unions have to realize that the automakers do not provide social programs and welfare. The automakers are in the market to make cars that'll sell and create profits. If GM and Ford want loans, then let them go bankrupt first so the court can restructure their obligations and fire the executives, too.

Detroit is free at last

Detroit mayor Kwame Kilpatrick, son of Congresswoman Carolyn Cheeks Kilpatrick (D-MI), pleaded guilty and will resign and pay a hefty fine.

This is the mayor that Obama calls "a friend and a colleague." Now let's see who else is a (in)famous Obama friend:

• Unrepentant terrorist Williams Ayers
• Corrupt businessman Tony Rezko
• Racist Rev. Michael Pfleger
• ...and many more

Change we can believe in? We cannot choose our parents, but we can certainly choose our friends. Looks like Obama didn't care much about who he hung out with.