Monday, June 15, 2009

GM's extortion racket to keep the Saturn plant open in Tennessee

We should have known that when the federal government gets into the auto business, they would resort to their old tactic...extortion. As with the federal income tax, it's pay up or suffer the consequences.
In 1990 at the Saturn opening, local officials praised GM's investment. Government Motors now tells them "pony up or we'll take our ball and go home." Pay for play.

GM wants cash up front to bring small car to Tennessee

SPRING HILL, Tenn. - The news that General Motors wants hundreds of millions of dollars from the state up front to bring production of its new small car to Spring Hill has only further increased anxiety among the plant's 2,500 workers.

Workers at the plant they're hopeful the automaker will select its plant to build the new small car, but it's looking less likely.

Governor Phil Bredesen on Thursday, upon returned from a meeting with GM officials in Washington, said the automaker requested cash upfront to utilize Spring Hill's plant to build the new small car.

He said GM doesn't care about tax credits and only wants to know how large a check the state is willing to write upfront.

"This is for them right now," he said. "[It's] all about frontend money."

The governor has said this is not a year the state can "spare" a couple hundred million dollars.

On Friday, Jim Smith, interim city administer for the city of Spring Hill, said while the news is "discouraging", "it's part of the process and we have to wade through it."

The GM plant is an economic engine in the Spring Hill community and helps support Maury County through property taxes and spending at local businesses.

The governor isn't taking Tennessee out of the running for the new car he just has to figure out how to convince GM to build it here.

"I was real pleased with Governor Bredesen's stance on it," said local business owner Daniel Hartsfield. "He is trying to keep GM from holding the state hostage. The plant should be here."

The Spring Hill plant will go idle in November when production of the Chevrolet Traverse shifts to a plant in Michigan.

It is not known how long it will remain that way.

source: WKRN Nashville

We Now Have A Total Gangster Government


  1. The GM plant is an economic engine in the Spring Hill community and helps support Maury County through property taxes and spending at local businesses.---

    Which is needed to offset all those millions not being collected when the state and local governments signed off on property and corporate tax abatements to lure the company to the state.

    Sounds like a zero sum game to me.

  2. What the f*ck does she think happened with Haliburton? KBR? General Electric? Enron? World Com? Goldman Sachs? Did she complain about that "gangster government"?

    And I should note, and you should for your readers, that the "stock" owned the taxpayer is non-voting, non-controlling interest stock. We don't a say about how the PRIVATE OWNERS OF GENERAL MOTORS run that company. She knows this. so basically, she is lying.

    This is not a "nationalized" company. It is a "subsidized" company or a entitlement program company... still privately owned and still paying dividends to share holders... just not us.

  3. Republicans were hiding and silent during the Bush gangster years. Yes, they are hypocrites for not speaking out then. Gotta play that two party game, don't they.

    GM and the other American car companies have always been extortionists. Ask any supplier how they shook them down for cost reductions and ruined more than a few. I worked for a fastener company that supplied several parts during Saturn's ramp up. As soon as the design was proofed, what did they do? Went to China for the parts even though we were cost competitive and only thirty miles from the plant. Typical. We lost all of our high volume auto parts for the big three, not because of cost or quality but because we were too small. All decided to consolidate their supplier base where only the big boys can play.

    A problem on the production line in assembly plants? Blame it on the supplier and demand they get on the next plane and into the plant within 24 hours. That's how I got to visit so many of them all over the US, Canada and Mexico. No shit, more times than not the problem was due to their own changes in procedure or their mistakes. Even after proving it and absolved from fault, how many apologies were ever forthcoming. None, never.

    I feel for the workers. They are good people and contribute to their communities. Can't say the same for GM and the unions. The unions were saviors for the workers in the beginning but over time became a big part of the problem and now will not be able to save all that many jobs.

    Ever been in a slow motion auto union shop where $60-70k workers appear to be on break all day long? Where it takes 6 people to do what one could do without breaking a sweat? That's why they lost their competitive edge to the transplants. That and poor designs and lack of foresight.

    From my dealings with the big 3, I always said Ford had the best management, Chrysler next and GM far behind. Maybe that's why Ford may be able to ride out this mess.

    At least GM was upfront with their demands on our state. Give us the money or we'll go elsewhere.

  4. I have been a union member, and I tell you right now, I wish I was again. My union, IATSE was selling out long ago when the film and television industry was going to Canada to avoid the unions.

    Yes, there was corruption and yes there were work policies that tended to drag out production. But I will tell you right now, that those aren't what CAUSED the businesses to go overseas... they aren't what caused NAFTA and GATT.

    You compare the costs of the American made cars to those of their foreign competition, and you will see that they aren't that far off... how do you explain that with the American overpaid unions dragging their feet and the Japanese cheap labor working doubletime for fear of being shamed by their all important corporations? Even materials cost more here...

    fact is, the workers who were union were NOT to blame for the car industry collapse... AT ALL. That is old school "unrestricted free-market Clintonista" propaganda.

  5. Japanese auto workers salaries are comparable to Americans, so that's a red herring to blame the fall of the Big 3 on union negotiated salaries.

    One of the major differences is that ALL the other industralized countries that make cars, trucks, etc. have some form of national health insurance.

    We don't, since we need that money for wars and Wall Street Casino operations.

  6. Bachman is another dyed in the wool traitor that is now trying to come across as some Republic saving patriot.

    She was down with invading Iraq and Afghanistan and cheers for the invasion of Iran.

    Bachman and some of her fellow travelers must be taking the advice of that vile Newt Gingrich and are taking to the airwaves in the evening on CSpan and blabbering about their great ideas to save America.

    It's just like the manufactured banking crisis: Put the same ones in charge of fixing the mess, who are the same ones who created the mess.

  7. Traitor is my favorite word to describe those like Bachman. I hope no one thinks that by posting such things as her video that I am supporting them. It was meant as an example of false opposition and what should have been said a long time ago.

    I also did not mean to imply that union negotiated salaries were a major cause of the problems. The artificial division of labor and lack of worker flexibility helped to drive up costs. I have talked to many union members in various industries who wished they were allowed to do more and not constrained by 'rules.'

    NAFTA was a planned destroyer of American industry. We knew it then in the Clinton era and hindsight has proven it correct. The globalists knew what they were doing. Breaking the unions and bringing down the American standard of living was the long term goal so that only a few would benefit.

    Where was the union opposition and solidarity to prevent or later eliminate NAFTA? They seemed brainwashed into accepting that it was necessary to remain competitive or maybe some at the top of the unions were in on it.

    I may have missed it but I don't think Congress is making very many moves to resend NAFTA. The Obama admin certainly isn't. Protectionism is a four letter word to the globalist/banker/corporate conspiracy to eliminate the middle class.