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Ford overhauls Way Forward plan (14K Non-Direct Labor Jobs Gone)
Autonews ^ | 9/15/06 | Mikey_1962

Posted on 09/15/2006 5:16:26 AM PDT by Mikey_1962

Cuts include 14,000 white collar jobs, fourth-quarter dividend; North American operations likely not profitable before 2009; market share expected to be around 15 percent

DETROIT -- Ford Motor Co. said today it will cut its operating costs by $5 billion and cut its salaried work force by one-third, or about 14,000 positions, as it speeds up its Way Forward restructuring plan.

Ford also said it will not pay a stock dividend for the fourth quarter, and will sell or close all former Visteon plants by the end of 2008 and close other plants.

The automaker now acknowledges that it won't return its North American automotive unit to profitability by the end of 2008 as previously planned. Because of further expected market share declines, Ford now says that full-year profitability for the unit is not expected before 2009.

That unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.

Market share for the Ford, Lincoln and Mercury brands will continue to fall, Ford said today. The combined market share of the three brands already has dropped by 1.1 percentage points through August, to 16.8 percent of the U.S. market.

Ford said today that U.S. market share of those brands will be in the low 16 percent range by the end of this year. Ford expects share to further fall to the 14 to 15 percent range in the future.

Ford will idle its Norfolk, Va., assembly plant in 2007, a year earlier than planned. That plant builds F-150 pickups.

A shift reduction is now planned for the Norfolk plant and the St. Paul, Minn., plant that builds the Ford Ranger pickup.

(Excerpt) Read more at autonews.com ...


TOPICS: Business/Economy
KEYWORDS: automotive; ford; homosexualagenda
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To: brownsfan

It also should be noted the difference between those unions which can /will be excised because of a free market such as the UAW, Teamsters and the like, as opposed to the 'super protected, unions like the federally protected railroad workers that are tax-subsidized.

My next door neighbor is one such person - lives like a king, never gets dirty, and protected from cradle to grave.


51 posted on 09/15/2006 7:12:41 AM PDT by quantim (Victory is not relative, it is absolute.)
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To: Mikey_1962

Well, when they signed on to be big supporters of the Gay/Lesbian Movement, they lost tons of business.

I hate to see 14,000 Ford employees have to take a buy-out but I hope this helps Debbie Stabenow lose her Senate seat. Granholm is already a goner as far as the Governor's race.

Some of you Michiganders give us some input here.


52 posted on 09/15/2006 7:15:09 AM PDT by no dems ("25 homicides a day committed by Illegals" Ted Poe (R-TX) Houston Hearings 8/16/06)
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To: brownsfan
What all of these "patriots" purposely ignore is that their countrymen are being put out of jobs.

Try reading the details of the exit package being offered. For example, four years at $27,000 per year and college education being completely paid for. This "patriot" thinks this option is better for America than paying $130,000 per year to sweep floors or paying "jobs bank" participants to do nothing.

53 posted on 09/15/2006 7:20:06 AM PDT by Tripleplay
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To: Mikey_1962

I've got two new Fords in my garage and I've had very little problems at all. And I've owned about 15 new Fords and except for a 1991 model very little warranty work. I used to have GMs and they were nothing but trouble.

The problem is quite simple. They have rode the SUV and pickup wagon too long and it has gone over the cliff with the market. They should clone the Toyota Camry, Honda Accord or Hyundia Sonata and make it BETTER! for less money. They haven't had any cars that are truly competitive for years. The Fusion isn't even made in the U.S. It is made in Mexico. The Mustang can't carry an entire company.

As far as what I have, I have the Escape (my second) and an F-150 and they are nearly perfect but Ford abandoned the sedan market and that was their downfall.


54 posted on 09/15/2006 7:30:05 AM PDT by RichardW
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To: no dems
I'm not sure the gay/lesbian issue is as big as offering vehicles consumers simply don't like. Most auto manufacturers (import and domestic) have caved in to political correctness. For example, Toyota helps fund the SG gay pride parade, but does so through its local dealer organization.

On the governor's race, the most recent polls show Granholm about 8% ahead of DeVos. The Democrats have been running TV ads accusing DeVos of creating 2,000 jobs in China (Amway) and these have taken their toll.

Obviously, today's announcement by Ford will negatively impact Granholm as many of the cuts, particularly the white collar ones, affect Michigan residents.
55 posted on 09/15/2006 7:32:27 AM PDT by BW2221
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To: RichardW
You are right in your assessment about SUVs and trucks.

Ford (along with GM and Chrysler) have to be careful about cloning successful Japanese models too closely. One of the reasons given for Fusion not selling better is that it looks "too Japanese."

This year Ford has sold more Taurus models (which are sold only to fleets - marginally profitable sales) than Fusions. That's a sad commentary on the state of Ford.
56 posted on 09/15/2006 7:37:27 AM PDT by BW2221
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To: BW2221

"Obviously, today's announcement by Ford will negatively impact Granholm as many of the cuts, particularly the white collar ones, affect Michigan residents."

No doubt. Of course, she isn't running Ford. She isn't the one running an absolutely pathetic marketing division. She also isn't the one who decided not to invest in upgrading their car offerings (note: their reliability is actually pretty good - but their designs are stale)....

Michigan is just far too reliant on the auto industry. Not to quote Captain Obvious, but the entire state's economy (and state budget deficit/surplus) rely on the auto industry being in good shape.


57 posted on 09/15/2006 7:42:43 AM PDT by eraser2005
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To: BW2221

The only "Fords" I would buy are a Jag or my Land Rover


58 posted on 09/15/2006 7:45:55 AM PDT by go-dubya-04
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To: Mikey_1962

Could this have anything to do with their new CEO? He did wonders at Boeing, maybe he can save Ford USA -- maybe they'll one day make a car I'd actually want to buy.


59 posted on 09/15/2006 7:47:55 AM PDT by antiRepublicrat
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To: em2vn

Sorry to disagree but companies exist for the benefit of their shareholders and, maybe, their customers. No more, no less.


60 posted on 09/15/2006 7:59:09 AM PDT by go-dubya-04
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To: antiRepublicrat

I think most of this was in place before the new CEO came in. My gut instinct is that Mark Fields wanted to do something more like this at the start, but was being held back by Bill Ford. IMO, Bill Ford had his heart in the right place, but wasn't necessarily making the proper decisions for the company. Fields is much more the businessman, focused on turning around the business even if it means layoffs/buyouts/etc.

I think that Mullaly (the new CEO) didn't come up with this plan. But he certainly would have given it the green light - something Bill Ford may not have been willing to do.

I think the one thing Mullaly will bring to Ford is the viewpoint of an engineer. For once, the company won't be run by MBAs without a clue how to build a car. Cars and airplanes aren't that far apart, really... the production process may be different. Their tasks may be different. But the science behind build quality, customer appeal, etc are very similar....


61 posted on 09/15/2006 8:01:57 AM PDT by eraser2005
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To: eraser2005
You're right about the poor quality of Ford's marketing. I did some work for a Ford vendor on a marketing program. The Ford client was investing $2 million annually on a program that would do virtually nothing to increase sales or even product awareness, but did so because he is a fan of the activity (a minor non-descript sport).
62 posted on 09/15/2006 8:12:33 AM PDT by BW2221
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To: eraser2005

Bill Ford was totally absent from this morning's announcement meeting/press conference.


63 posted on 09/15/2006 8:14:07 AM PDT by BW2221
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To: Mikey_1962
Ford has never been known for quality competitive sedans. That being said, it has only been a year since Katrina and high gas prices.

But they are too big an American icon to let fail (read US govt if the Dems get in).

Their SUV dependency will have to change. Big American companies cannot turn on a dime.


BUMP

64 posted on 09/15/2006 8:49:54 AM PDT by capitalist229 (Get Democrats out of our pockets and Republicans out of our bedrooms.)
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To: RichardW
Let's see, I've owned a Ford Falcon, a Ford Mustang, a Chevy Van, a Dodge Caravan, three Hyundai Elantras, and now a Hyundai Sonata.

In fact, in each case I bought BEFORE the market ran away and made all of them (except the Hyundais) the top sellers of all time.

There's also an S-10 pickup out there too.

My criteria for vehicle purchase is a combination of low price, ready availability of repair parts, carries my stuff and, biggest one of all, it has paint on it.

My alltime favorite has to be the 2006 Sonata ~

65 posted on 09/15/2006 9:41:31 AM PDT by muawiyah
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To: BW2221

Doesn't surprise me one bit - they want to put a new face on the company for wall street, and Ford was probably embarrassed...


66 posted on 09/15/2006 9:45:01 AM PDT by eraser2005
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To: BW2221

Speaking of the Fusion and the Taurus, does anyone know the current capacity of the Hermosillo plant that builds the Fusion? Last I heard (2004), the capacity was at 160,000 vehicles per year. Thats based on a two shift run. If you go to 3, you could hit 240,000.

Year to date, Fusion/Zephyr/Milan sales total 147215 (through August). That puts them at an annual pace of about 221,000. In other words, unless Hermosillo has been expanded significantly, it is likely running all-out to keep up with demand, and they'll need to open another line elsewhere to add extra capacity.

As for the Taurus outselling the Fusion, it no longer is in recent months... but still, to have fleet sales account for so much of your mid-size sedan sales is sad...


67 posted on 09/15/2006 10:49:33 AM PDT by eraser2005
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To: BW2221

I'm not sure the gay/lesbian issue is as big as offering vehicles consumers simply don't like. Most auto manufacturers (import and domestic) have caved in to political correctness. For example, Toyota helps fund the SG gay pride parade, but does so through its local dealer organization.

Of course Toyota seems to be the choice of terrorists...Note the vehicles in the "9/11" movie


68 posted on 09/15/2006 11:15:56 AM PDT by kaktuskid
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To: LetsRok

I am well aware of the principles of capitalism. What I dislike on these boards is the sheer delight some of you take when people lose their jobs. It is disturbing. Also, I read these postings. My husband works for GM-just got transferred to Janesville WI. I am sick and tired of hearing about the superiority of foreign cars and carmakers. I consider it unpatriotic. GM now offers the best warrenty in the business-100,000 miles (come with the car). They have confidence in their product obviously.

What you and others fail to understand is that the deck is stacked against American auto manufacturers. Japan is allowed to sell in this country at a lower price because they can make it up at home-American cars are kept out of Japan using dirty tricks. Japan subsidized their car manufacturers. This is strictly against the WTO rules. However, the WTO is a bastion of American haters so ths will never be addressed. All American Manufacturing is requesting is a level playing field. The people losing their jobs at Ford are doing so not because of capitalism, but because of unfair and poorly implemented trade policies.

Our government over-regulates American business and turns a blind eye to flagrant abuses of the trade laws by foreign competitors. You may think that people losing their jobs is good for stockholders-maybe for a while. However, we will lose stability in our society and will end up with national healthcare and a host of social programs. How ironic that misapplied capitalism in the form of trade policies may in the end bring about
socialism in the United States.


69 posted on 09/16/2006 5:01:21 AM PDT by nyconse
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To: Tripleplay

I owuld like to tell you something I know first hand. On 10-1-2006 a number of salaried employees at GM in Doraville Georiga will lose their jobs-no compensation of any kind except unemployment. My husband was fortunate. He was transferred and last Monday began his job in Janesville wisconsin. Perhaps, you might spare a thought and/or a prayer for these people. They are normal people with kids, mortgages just like you.


70 posted on 09/16/2006 5:08:05 AM PDT by nyconse
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To: Mikey_1962

The future of the auto industry will be dealer-free. Customers will buy autos directly from the factory on line, and will pick them up at distribution centers...a kind of Walmart model of cost reduction. There will be service centers for maintenance, but no show-room floor. The coming generation is so used to buying everything on line...even homes...that it won't bother them a bit that they can't "kick the tires" first. The auto industry will either make this change to save money, or they will go under.


71 posted on 09/16/2006 5:10:24 AM PDT by kittymyrib
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To: Erik Latranyi

I can not disagree. Certainly, there have been management problems. Also, the visceral hatred of American cars is merely conservatives buying into the idea that foreign anything is superior to American products. Really, this is the same kind of snobbery and anti-Americanism you find in liberal circles. GM produces excellent cars which now have a 100,000 mile warrenty-comes with the cars, great financing options and a hidden benefit-Americans with jobs create a stable society. If we lose our manufacturing base, we will be headed for socialism. It is only a matter of time.

My husband told me last year that Ford was in deep trouble. He works for GM. You are very well informed. I hope and pray Ford survives, but they are in deep trouble-no doubt.


72 posted on 09/16/2006 5:16:01 AM PDT by nyconse
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To: alice_in_bubbaland

Well aren't you special? Of course, I am sure you know all about how bad Ford is...after all you owned one over twenty years ago. Don't forget to fly the American flag on the 4th of July...you are a patriot in all senses of the word (sarcasm).


73 posted on 09/16/2006 5:22:33 AM PDT by nyconse
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To: cripplecreek

People on this board do not understand the social cost of losing entire indusstries- electronics, garment, steel and now auto. This should not have happened. I blame the government. They did not demand fair and balanced trade. It is sad. We will all pay a heavy price for this in the end.


74 posted on 09/16/2006 5:25:24 AM PDT by nyconse
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To: Taggart_D

The $100,000 auto union employee is an urban myth. These guys/gals make no where near that. I suppose you think they should work for minimum wage. Manufacturing cars is a high teck business these days.


75 posted on 09/16/2006 5:27:35 AM PDT by nyconse
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To: BW2221

You bring up a good point. Many different companies are affected by the health of the car industry. If we lose American manufacturing, we would lose thousands of related jobs. I do not believe you can be a great country if you manufacure nothing. Do liberals and anti-American conservatives believe that we can serve hamburgers to each other and maintain our prosperity and our status in the world?


76 posted on 09/16/2006 5:30:52 AM PDT by nyconse
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To: em2vn

I absolutely agree with you. People see cheap cars. They don't see the hidden cost-social unrest and eventually socialism.


77 posted on 09/16/2006 5:32:32 AM PDT by nyconse
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To: Alouette
I worry that these cuts will beget further cuts in a self fulfilling manner. How many potential customers are worried about the quality of vehicles produced by a threatened and demoralized workforce?
78 posted on 09/16/2006 5:33:30 AM PDT by Truth29
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To: Senator_Blutarski

Actually, GM has turned an important corner. They are in much better shape then Ford. They stand behind the quality of their cars with the best warrenty in the industry-100,000 miles. Ford is on the ropes. My husband (works for GM) believes it will be a miracle if Ford does not go under. We are praying for Ford to succeed because it is an American company which affect thousands and thousands of people at Ford and in related industries amd ultimately the stability of American society.


79 posted on 09/16/2006 5:36:33 AM PDT by nyconse
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To: nyconse

"I want Ford to succeed"

Then let Ford do a warranty program like GM has just put out. I figure that will either save GM(by putting consumer confidence into American autos) or will flush them down the toilet if the product does not hold up in reality.


80 posted on 09/16/2006 5:37:45 AM PDT by freeangel ( (free speech is only good until someone else doesn't like what you say))
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To: brownsfan
You are absolutely correct. You are an eloquent writer-much better than me.
81 posted on 09/16/2006 5:39:26 AM PDT by nyconse
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To: nyconse
I won't buy crap! BTW, How much stock to you own in "Fix Or Repair Daily"? Are you a UAW member? No, I'm not happy about an American Company going under. Ask the UAW how much of a hand they had in Ford's demise. I say 95%!

No, you are the smug one, so get off your high horse. And blame the UAW! Geesh!

82 posted on 09/16/2006 5:42:06 AM PDT by alice_in_bubbaland (NY Slimes the paper of record for OBL!)
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To: TonyInOhio

I am praying for all those at Ford now and in the past. My husband works at GM. He kept a job. Pray for those in Doraville Georgia who do not have a job-October 1st. They will soon be without any job. The last paycheck is it-no deals of any kind.


83 posted on 09/16/2006 5:42:29 AM PDT by nyconse
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To: nyconse
The $100,000 auto union employee is an urban myth. These guys/gals make no where near that. I suppose you think they should work for minimum wage. Manufacturing cars is a high teck business these days.

I was an AFL-CIO member and my wage topped out at $12 an hour. I did have decent insurance which was nice. I was a paint process tech which meant that I was trained in all paint room operations from simple mixing of paint to rebuilding and installation of air and fluid regulators and pumps as well as programing and operation of paint robots.
84 posted on 09/16/2006 5:42:57 AM PDT by cripplecreek (If stupidity got us into this mess, then why can't it get us out?)
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To: LetsRok

If you truly believe that some faceless foreign CEO cares about this country-think again. You are selling America out. The Dems want to give America away. Pure capitalist want to sell America. In the end the coutry will suffer either way.


85 posted on 09/16/2006 5:44:40 AM PDT by nyconse
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To: muawiyah

When we start abandoning entire cities and states (Michigan), I have to say I don't see pure capitalism as being particularly successful.


86 posted on 09/16/2006 5:48:09 AM PDT by nyconse
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To: KarlInOhio

I would say that Toyota's quality has not improved-base on the huge number of recalls-worst record in the industry today.


87 posted on 09/16/2006 5:50:10 AM PDT by nyconse
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To: em2vn

Spoken like a true socialist. Corporations exist for the sole purpose of the stockholders. Workers are no different than raw materials, a compmnent of the manufacturing process.

Well managed corporations take care of their employees because it is profitable to do so. When left wing thoughts such as your creep in the management must be changed.


88 posted on 09/16/2006 5:55:42 AM PDT by bert (K.E. N.P. Slay Pinch)
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To: alice_in_bubbaland

My husband works for GM...so we don't own Ford stock. Unions certainly are not resposible for 95% of Ford's problem. There are management issues and most importantly the total failure of our government to insist on fair trade. Also, people who assume -against all evidence- that just because an American manufacured something that it is crap-like you certainly hurt all American business. You are a member of the hate America first club in my opinion.


89 posted on 09/16/2006 5:59:51 AM PDT by nyconse
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To: nyconse

....I consider it unpatriotic......

You need an attitude adjustment..... it's business, strictly business.


90 posted on 09/16/2006 6:04:56 AM PDT by bert (K.E. N.P. Slay Pinch)
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To: cripplecreek

Hey you are a union worker. How dare you expect a decent wage and health insurance(sarcasm). Everything wrong with America is your fault; you should be willing to work for a bowl of rice (sarcasm). Once the unions are out of the way...American business will be reborn (sarcasm).

Unfortunately, if the global capitalist get their way, we should be prepared for 'Cinderella Man' like conditions. The American business model of the 20th century was based upon the belief that people should be able to buy the products they make. It was very successful and created a prosperous middle class. The robber baron type of capitalism will create unrest, revolution and ultimately destroy the middle class.


91 posted on 09/16/2006 6:07:26 AM PDT by nyconse
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To: bert

Nothing is ever stictly business. If Americans lose jobs. Democrats will most likely win, and America will lose. Business affects every aspect of our lives. I stand by my statement. Patriotic people support their own companies whenever possible. The hate America first crowd which includes conservatives needs an attitude adjustment.


92 posted on 09/16/2006 6:11:54 AM PDT by nyconse
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To: bert

You are mistaken.


93 posted on 09/16/2006 6:13:52 AM PDT by nyconse
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To: nyconse

Your logic is totally flawed.

Sucessful business grows. Unsuccessful business dies. Social work is incidental.


94 posted on 09/16/2006 6:14:49 AM PDT by bert (K.E. N.P. Slay Pinch)
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To: freeangel

I don't know that Ford can afford such a program. Cash is a big problem right now at Ford.


95 posted on 09/16/2006 6:15:09 AM PDT by nyconse
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To: bert

Business can not be succersful when their hands are tied behind their back...we need to have fair trade. Make foreign competitors obey the law.

This is a very simplistic view. Business is affected by society and vice versa.


96 posted on 09/16/2006 6:18:04 AM PDT by nyconse
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To: nyconse

My problems with the unions are political activities and scale based pay.

Union political activities only promote the fantasy that all union members agree and blindly vote the way their union wants. Thats simply not true. In fact most of the union members that I know tend to be conservative but union members in the Detroit area are probably on the liberal side of the scale.

As far as scale based pay is concerned, I think people should be paid based on their merits.


97 posted on 09/16/2006 6:30:38 AM PDT by cripplecreek (If stupidity got us into this mess, then why can't it get us out?)
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To: nyconse

.....Make foreign competitors obey the law.....

You mean like insourcing jobs to unionless South Carolina where both Daimler Chrysler and BMW have established plants to comply with the laws that put tarriffs on their imported products.

There could be labor southward migration from Michigan but they have the union disease and are thus not employable.

Or perhaps like Nissan that recently moved its headquarters from the sewer of Los Angeles to more friendly Tennessee where people actually work.

Auto jobs are not being lost, the loser's jobs are being taken up by others with a good attitude about a days work.


98 posted on 09/16/2006 6:50:25 AM PDT by bert (K.E. N.P. Slay Pinch)
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To: nyconse
why do those on this board (not all but some) hate American Auto manufacturing?

People on this board hate recognize the UAW and its advocacy of socialist Amerika.
People on this board hate recognize the extent of union interference in American Politics that attempts to sway elections towards liberalism.
People on this board hate recognize the brute tactics used by union members to force people into unions.
People on this board hate recognize the socialist agenda of Bill Ford and his willingness to utililize share-holder assests to further his political agenda (including homosexual advocacy).

99 posted on 09/16/2006 7:03:00 AM PDT by TaxRelief (Wal-Mart: Keeping my family on-budget since 1993.)
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To: bert

Spoken like a true unstrained capitalist. Under your concept a corporation is free to do actual damage to a nation as long as it is done in the name of its stockholders.
From your perspective, you must have supported Bill Clinton and Loral corporation in their transfer of technology to the communist chinese that allowed the communists to MIRV their ICBM. It was good for Loral's stockholders
It appears you will support any form of government as long as it is good for corporate stockholders. That seems to make you a pro-communist supporter of communist china and Chavez in Venezuela. You would have been a perfect fit with the facists in Nazi Germany and Italy during World War II. They were good for the stockholders.
I'll just be Pro-American and believe that there is more to the life of a corporation than stockholders alone.


100 posted on 09/16/2006 7:11:28 AM PDT by em2vn
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