it is just not from you idiots, it is from the muppets, and the financial press.

the story that goes undiscussed is the spin off of gm assets to delphi, ford assets to visteon.

now, the visteon story has been more obscured than the delphi story. but i think it has the same theme.

gm spun off manufacturing assets to make its financials look better. and it called the baseball glove that caught those assets delphi. just as ford spun off assets into an entity known as visteon.

the purpose of these magical spin-offs was to make the parent spinner appear financially sound.

when richard shelby and the other reptillian gangsters[and demtillian gangsters by the way] avoid the story of delphi/visteon, then you should recognize that the gangsters are running the show. and larry kudlow and all the jack welch myrmidons are parties to the confusing of the electorate.

here is how it worked….

and this even appeared in the wsj. since rupert acquired it, important truths have been erased.

but, shortly after delphi filed for bankruptcy/reorganisation, the wsj asked the delphi principal what the post-bankruptcy delphi would look like.

his answer, [to paraphrase]”i don’t know how the final structure will appear, but i can tell you this, we are not keeping the AC spark plug operations.”

how come, he was asked.

his reply, when GM owned and operated this spark plug manufacturing, the average variable cost for a spark plugs for original equipment installation was $2.57. this is the cost that GM had to eat when it built a car.

but, after this AC spark plug operation was spun-off into Delphi, we were coerced to sell spark plugs to GM for $1.57.

so, Delphi was forced to take a dollar loss for each spark plug sold to GM.

spark plugs were not the only components spun-off into delphi that GM[rick wagoner and his board of directors] were mandated to be sold to GM at a loss.

as you may recognize, this strategy allowed GM to claim manufacturing cost reductions, based on a falsehood.

and this scheme did force delphi into bankruptcy.

because it wasn’t just spark plugs that were folded into delphi by
GM that delphi had to sell back into GM below avc. it was every component GM forced into the delphi spin-off.

ford did the same thing with visteon.

all a financial charade. that goes undiscussed.

what makes this very nasty is that the uaw knew of this scam. and kept its mouth shut. i suppose it was hoping that the scam would succeed.

over the last several years, many of the gm assets that were spun-off into delphi have been returned to delphi secretly.

no periodical will discuss this story. the wsj shuns it. as do the nyt, the wapo.

but it the real story of how gm/ford worked to hide their mismanagement.

mismangement at the highest levels.

no uaw had anything to do with this bit of chicanery.

on the other hand, the uaw knows of this bit of financial skullduggery. yet refrains from telling this story.
.

some would ask why. don’t you know. to tell this truth might bring down their sinecures…the entirety of the very corrupt us auto industry

Thanks for picking up on Bill Kristol’s quote from Sunday. I mentioned it in the Sunday Morning line-up thread and no one was very interested. And then Juan Williams followed Kristol’s surprising and excellent observation with pure plantation caucus spew.

It was an interesting Fox morning news on Sunday…I usually do not watch…I honestly thought I must have missed something in Kristol’s comment because he spoke with a clarity about the Repugs no one has said as well, outside of Progressives.

And yes, a company that judges “who” they make profit from by deciding who goes to financial hell and who gets out of financial hell, sure as hell has to make concessions too. And in the sunlight (i.e. regulation CDS’s)…

Dan Quayle fails on the “good stewardship” front from a faith-based perspective.

Ford and GM both are bringing their European (small, fuel-efficient) cars to the US in the next year or so after they get the engines certified and go through all the US testing they have to pass before they can sell here. They have been making these kinds of cars all along – in Europe and Southeast Asia – and making money doing it. But consumers here wouldn’t buy them – everyone wanted a big SUV.

In any case, the real issue is credit. If consumers can’t get credit they can’t buy cars. ANY cars. If the dealers can’t get credit – they cannot re-stock their inventory. If the suppliers can’t get credit they cannot let GM/Ford/anyone buy without paying first. And if Ford/GM/anyone doesn’t have a line of credit to access that allows them to do that they cannot buy parts to make cars out of. The problem is not the cars they produce or their bad business decisions (which they all have made) in the past. It’s the credit crisis in the banking industry. Until that is really fixed, the automakers will continue to be in trouble. And as we have seen, the feds do not understand that they are pouring money down a black hole on that front and nothing is happening.

And Nissan won’t go under, right? They’re not begging anyone for bailout bucks, right?

Actually, Toyota, Honda, Nissan, and all the others are in just as bad of shape as our 2.5. They are already getting bailouts from home (Japan) and from the EU.

The myth that the transplants are doing just find is just that, a myth.

As for the actual salaries – if they want parity with Toyota than the UAW gets a $2 per hour raise. Toyota management even said their workers are making more than the UAW now.

So…what’s next?

Make mine black (of course, it’s gotta be menacing to make the Porsche Cayman premadonnas sweat their cologne out on the track) with the touring package (leather seats, Bluetooth, auto dimming rear view mirror with Homelink, aluminum pedals, rear cargo cover, upgraded sound system), manual transmission (anybody who orders the automatic in this car has no business getting a sports car, period), sport package (limited-slip differential, upgraded wheels, tires, and brakes, and SynchroRev Match), a navigation system so I don’t get lost getting to the track, and the NISMO oil, transmission and differential coolers to keep temps in check on the track.

And Nissan won’t go under, right? They’re not begging anyone for bailout bucks, right? I wanted a Camaro, but with GM now at the knees of the feds, who can kill anything resembling fun for teh environment, I’d be shocked if the Camaro ever gets to production.