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UAW leader says blame economy for Detroit 3 woes

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By MARK WILLIAMS, AP Business Writer Mark Williams, Ap Business Writer – 57 mins ago
In this Oct. 7, 2008. file photo, United Auto Workers president Ron AP – In this Oct. 7, 2008. file photo, United Auto Workers president Ron Gettelfinger talks to reporters …
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COLUMBUS, Ohio – Even as Detroit's Big Three teeter on collapse, United Auto Workers President Ron Gettelfinger said Saturday that the problem is not the union's contract with the automakers and that getting the automakers back on their feet means figuring out a way to turn around the slumping economy.

"The focus has to be on the economy as a whole as opposed to a UAW contract," Gettelfinger told reporters on a conference call, noting the labor costs now make up 8 percent to 10 percent of the cost of a vehicle.

"We have made dramatic, dramatic changes and the UAW was applauded for that," he said.

Instead, Gettelfinger blamed the problems the auto industry is suffering from on things beyond its control — the housing slump, the credit crunch that has made financing a vehicle tough and the 1.2 million jobs that have been lost in the past year.

"We're here not because of what the auto industry has done," he said. "We're here because of what has happened to the economy."

Gettelfinger also called on Congress to act quickly on a bailout plan for the auto industry, saying action is necessary before President-elect Barack Obama takes office in January.

Hmmmm I think he is scrambling because Obama might just call BS on some of this union crap.

At least I sure hope he does. I hope he suspends their power for a while and resets our domestic auto industry

I am not buying it....

Credit crunch hasn't made financing a vehicle tough, as anyone who is in the market and able to buy a new car can get financed.....I or anyone else on here can get 0% from any of the Big Three and others....

Credit crunch may have put a red flag on lenders, but they sure as hell haven't stopped handing out credit...ask as for an increase in a credit card...bet they honor it.

Hey Gettelfinger....your ridiculous wage requests and the fact that (insert Big Three) can do business cheaper due to wages and absurd corporate taxes here, makes sense for them to go to Mexico and Canada. Ford has done this and their Fusion, Edge, and F-150 continue to impress. They are obtaining increased popularity and sales along with impeccable service demands without paying your silly wages for "insert bolt here, twist nut here" employees. 8-10% of the cost is labor, push it down to 4 out of the US and you are talking figures that makes good business sense. If you can make a few thousand here and there, you will do it. There is no incentive to stay here.

Use local governments for example. Are you going to locate where you get a 10-15 year tax abatement, or somewhere where you are getting hammered full rate? This is simple. But dems won't see it, and nObama sure as hell doesn't.

The big three offered 0% 7 years ago. Not because the economy sucked as it does today, but because they needed to push units to save jobs and make money. If they had to push units to keep jobs 7 years, ago, what was their excuse then? The economy? Economy was doing fine at that point. They had to push units because they put themselves in this situation. Some of the blame was taxes, other was internal.

The economy of today is a crutch for those that had piss poor business practices in the past. Unfortunately now for them, they are feeling the effects that the majority of us have felt for some time.

As I have stated before. I beleive that unions have cost the americans millions and they still get by with BS. When will somebody stand up and take charge to rid this nation of unions?

E_HILLMAN wrote:Hmmmm I think he is scrambling because Obama might just call BS on some of this union crap.

At least I sure hope he does. I hope he suspends their power for a while and resets our domestic auto industry

We will see, But the Union's Vote Democratic Big Time. Obama wants to promote Union Membership Over all !

We will See !!!

This is something that the UAW will never allow in the US. If you watch this 3 minute video, you will see what can be done and how to lower our cost of cars & trucks. This is truly amazing.
http://info.detnews.com/video/index.cfm?id=1189

The union had its place in the work force at one time. But that time is now long since past! They have now become a thorn that continues to 'fester'. JMO