Youngstown News, Hagan blasts GM plan to import cars it made in China
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Hagan blasts GM plan to import cars it made in China


Published: Fri, May 15, 2009 @ 12:10 p.m.

COLUMBUS — A lawmaker from Youngstown plans to formally chastise General Motors for its reported plans to build cars in China for sale in the United States.

Rep. Bob Hagan, a Democrat from Youngstown, said he will introduce a resolution in the Ohio House (a mostly symbolic gesture) expressing his disgust with the news.

“It’s an outrageous smack in the face of American workers,” he said Friday. “For General Motors to even suggest that they would ship cars in from China is just an outrageous attempt at thumbing the nose at the American worker and American taxpayers, as well.”

Hagan was responding to news reports that GM plans to market upward of 50,000 cars made in China to American consumers over the next five years.

“We don’t need cars built in China,” Hagan said. “We need General Motors to use the $15.4 billion bailout from American taxpayers to utilize American auto plants and American workers. We have great resources here ... and GM needs to be grateful for the strength of our workforce instead of spitting in our face.”


Comments

1JeffLebowski(953 comments)posted 2 years, 9 months ago

Strong words.

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2smte4pears(18 comments)posted 2 years, 9 months ago

If GM does make cars in China, what will make them any different from any foreign automaker?

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3scrooge(563 comments)posted 2 years, 9 months ago

You just keep on voting with Pelosi, BO and the group to bailout companies that will just transfer more production overseas.
Our children's children will be paying for your bailout and GM execs will STILL be laughing all the way to the bank!

Way to go BOB! Yeah, write that letter to make it look like you care. Make sure you have Timmie sign it too. He LOVES signing letters!

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4cambridge(2282 comments)posted 2 years, 9 months ago

Obama is eliminating tax breaks for companies that move jobs overseas. It definitely seems as though he was mistaken when he assumed that the companies taking tax payer dollars after running the companies into the ground would be grateful and do the right thing by the people that saved them. Unbelievable.

This is a smack in the face of American auto workers, union and non-union. Anyone buying a new car can easily find out if that car was built in the United States. Do your research before you buy a new car and by one made in America and as close to your own community as possible.

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5dirtyharry667(7 comments)posted 2 years, 9 months ago

Yup, I'm sure all those $73 an hour UAW employees will be able to churn out many affordable small cars and make loads of money for their employers ... LMAO!!! Stick a fork in it, GM is done. If the UAW still hasn't figured out that their employer is not a glorified charity, as future owners even, then there is no hope for GM or the Great Lakes states.

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6JerryN298(1 comment)posted 2 years, 9 months ago

Here's an excerpt from a letter to constituents by Congressman Mike Rogers (R-Mich) that offers a different spin than we're getting in the media:

"I write today to update you on recent legislative activities in the United States Congress. I appreciate the opportunity to contact you.

Protecting Michigan Auto Jobs

This week I learned that under President Obama's proposed auto restructuring plan, GM may be forced to import cars made in China and sell them in the United States. This is unacceptable, and Michigan families deserve better. They cannot afford to have their tax dollars spent to ship GM jobs overseas.

I believe any auto restructuring plan should not send Michigan jobs to China. To counter this threat, I am drafting legislation to stop this outrage against hardworking Michigan families who play by the rules and struggle these days to make ends meet. My measure would prohibit President Obama's Auto Task Force from approving any GM or Chrysler restructuring plan that sends auto jobs overseas. I also am working on legislation to close the 'Hummer Loophole' that, if allowed to stand, will almost certainly lead GM to sell Hummer and other brands to Chinese and Indian companies.

I am surprised the administration would support a viability plan that sends U.S. jobs overseas. I look forward to working with President Obama to make sure our American auto jobs continue to provide a future for America's working families."

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7dirtyharry667(7 comments)posted 2 years, 9 months ago

<i>" I am drafting legislation to stop this outrage against hardworking Michigan families who play by the rules and struggle these days to make ends meet. My measure would prohibit President Obama's Auto Task Force from approving any GM or Chrysler restructuring plan that sends auto jobs overseas."</i>

LMAO!!! So he's going to force them to build small cars here at a loss? Or is the alternative to NOT build small cars at all ... and continue building BIG CARS at a profit? Isn't that what got them into this mess to begin with? How about just leaving them alone and just letting them run their business without a bunch of failed lawyers telling them what to build or not. Why do you people place so much faith in these failed lawyers who become politicians? If you can't make a profit charging $200 an hour, what makes anybody think they know how to run a car company?

I feel for the UAW guys, but the days of cradle-to-grave corporate socialism is over. Take what the market will bear and stop bleeding these companies dry!

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8cambridge(2282 comments)posted 2 years, 9 months ago

I don't get the connection on what size car GM decides to build and the UAW. Assembly line workers don't decide what they build. I find it hard to believe Obama's plan is to have GM build plants and import cars from those plants. I don't know if he or anyone else can stop that. There are auto plants all over the United States. If you buy a new car make sure it was built in one of those plants.

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9dirtyharry667(7 comments)posted 2 years, 9 months ago

A small car takes no less steps to build than a big car. How are you going to make money on a car that's supposed to competewith a $7995 Kia using $73/hour labor? Isn't it smarter to let them import cars where it makes sense, and build others that make sense here? What amazes me is that it's always easy to spend someone else's money, but the name of the game is PROFIT. If your employer makes PROFIT, everything else is good. But if you force them to be a social services agency, well ... you can all see the outcome of that experiment.

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10cambridge(2282 comments)posted 2 years, 9 months ago

I watched Fritz Henderson the CEO of General Motors on the Glenn Beck Show last night. In regards to GM's problems he stated, "the unions are more the solution than the problem".

I don't have a problem with anyone making a living and trying to do the best by their family. Union or non-union. If the American worker has to compete with Chinese labor we are all doomed. I don't see any American corporate executives volunteering to live on what Chinese executives live on. The exchange rate is 6 to1. Other countries protect their labor and manufacturing we need to do the same. I get that you have a problem with people belonging to a union, making a decent wage with health care and a pension but that's their business.

What makes you think the Chinese can build a quality car? Their baby formula kills their babies, their lead covered toys contaminate their children, their tooth paste contains poison, their dog food kills their dogs. A dog will eat anything. They eat their own poop with no ill effect. The only thing I know of that isn't safe for them to eat is Chinese dog food. I find that when I compare products made in America or made in another country from the same company the American version is far superior. I admit they are far more expensive but I don't mind paying more for quality and something that lasts.

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11dirtyharry667(7 comments)posted 2 years, 9 months ago

I also don't have a problem with union guys making a decent wage. I do, however, have a problem with the union mentality that it's the company's job to support you from cradle to grave. GM has something like 50,000 employees, but pays health care and retirement for 500,000. GM is still hamstrung by subpay at 95% ... in other words, even when business goes down, they are still stuck paying wages for up to 3 years. Bill Gates can't even afford to do this ... GOD can't even afford to do this!!!

I am all for someone making a good living working for the company, if the company can afford it. If the company can't afford it, yoiu need to find something else to do.

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12cambridge(2282 comments)posted 2 years, 9 months ago

If you made a contract to work for someone and their end of the contract included a pension and health care or whatever. If at the end of your life's work the other party came to you and said, "you know what, we've made some bad business decisions and the economy's not going so well, so your on your own. Good luck". What would your reaction be?

I understand things aren't going so well right now but were at a point in this country where people have no problem not honoring the Constitution, International treaties, legal contracts and so on. That is not America. I understand that $73.00 an hour wage package is a lot but it's 2009 and health care cost are out of whack. Instead of putting that blame on the person who's health care premiums drive their package up please consider all the circumstances.

I've said it before and I'll say it again I don't have the answers to the predicament we are in. Believe me I could write a book about what I don't know. But it's just to easy to point to the unions and say that's the problem. Especially when the CEO of the company says that's not the case. In the same interview he stated, "our sales dropped 45% over a 18 month period and we couldn't survive that", It's time as Americans to just not buy that Chinese import and support the American auto worker. Union and non-union alike.

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13JAB(36 comments)posted 2 years, 9 months ago

Bob hagan is all bark and no bite. He talks alot but does nothing. He is part of the problem not the solution. Bob, if you are so sincere and you believe in the fight, and this area, why don't you lay your butt down on the state capital steps and fight for us. And for god sake don't give in and don't leave until you win. Grow a spine and some balls and fight for us. That is why we elected you. Fight the good fight, and this time win. Forget about Dann and that crap. Move on.

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14dirtyharry667(7 comments)posted 2 years, 9 months ago

Cambridge: What you say is well and good, but they can't afford it. THEY ARE OUT OF MONEY. So, the question for all these union guys is, do you refuse to change with the times and starve yourself out of a job or do you resign yourself to the realities of the market and adjust yourself accordingly. 15 years ago, any decent desktop computer cost $2,000, now you can pick one up for around $500. The companies that couldn't adjust to this reality are not making computers anymore.

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15cambridge(2282 comments)posted 2 years, 9 months ago

harry: I hate to repeat myself but the CEO of GM says the "unions are more the the solution than the problem". The unions are not the problem.

Someone mentioned the steel industry in a post. We can't compete with China in the steel industry. Do you know why? No it's not the unions. When the Chinese target an insustry the government subsidizes it. They are not for profit. They make and ship steel cheaper than you can buy the ingredients. Let me say it again. A US steel company pays more for the material than you would pay the Chinese to make it and ship it over.

Again, it's so convenient to point at the steel workers and say it's their fault. Jab got it right. We elect representatives to represent us. Tariffs should be in place to put the cost of Chinese steel or any others steel to cost the same as ours. That's what other countries do to us. If the Chinese start importing cars they will do the same thing. They will target and subsidize the industry and ship cars not for profit. They don't care about the rights and well being of their citizens. So if the government doesn't step up and we are to compete by their rules we will have to adopt their standard of living.

This the last I have to say about the subject. You and I will just have to agree to disagree and you and GM's CEO will have to agree to disagree.

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16dirtyharry667(7 comments)posted 2 years, 9 months ago

I never said I agree with the CEO's. In fact, GM's management has made a lot of brain-dead decisions over the years. But what I stated was a plain and simple fact. You can whine about all the pay and all the benefits you want, but there simply is no money for it. Just like your checkbook will only go so far each month, GM's can only go so far. NOBODY CAN AFFORD TO PAY PEOPLE WHO ARE NOT WORKING TO SIT AROUND FOR THREE YEARS -- NOBODY. Because of these lavish benefits, you cost GM $2,000 more per car. That means for the same priced car, you are buying $2,000 less car. That's why GM has cheaper interiors, push-rod engines, and parts that don't stand the test of time. And that's why you guys keep losing customers and your market share keeps shrinking.

Between my parents, brother, and myself, we have purchased 7 Honda products over the last 25 years or so. It is simply amazing how little service these cars need ... and how nothing breaks inside. Even though Honda Accords have gotten pretty ugly, in my opinion, when it came time for my father to buy another car in March guess what he bought? Most people will agree that Hondas are the best-engineered cars out there.

This is not to say that GM can't make a car like this. They can. Unfortuntately they have to cheapen the cars they make to make up for the cost difference. That's why they lose customers.

The same story repeats itself over and over again. Kmart versus Ontario; Walmart versus Kmart; Computers; Televisions; etc. If you can provide a better product cheaper, you win. That's what capitalism is all about. There is nothing anybody can do about this other than to adjust to the realities of the marketplace.

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17rloh330(43 comments)posted 2 years, 9 months ago

This reminds me of the 70's when Japan was grabing a huge share of the US auto market.
It's a quality problem,people will only put up with it for so long!!
GM has been putting out junk for years again,just ask any honest mechanic.

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18commoncents(53 comments)posted 2 years, 8 months ago

We are part of a global economy whether we like it or not. We CAN compete, but not the way we did things 60 years ago. Hagan seems to again be suggesting isolationism instead of solutions. Look how well that practice has served the Valley so far!

We need to separate American workers from labor unions when we talk. Our workers are the finest and want a decent living like all of us. The labor unions (not their members) are the real problem. They have driven away most good paying jobs in the Valley; they ended the steel industry; they are about to kill off auto manufacturing and healthcare also. Their corruption and needless workplace waste policies hurt everyone and help no one. Let their workers earn a decent wage (give the workers their union dues as a raise!) and be a part of making industry strong and competitive. I'll bet that most of our quality UAW workers would gladly keep their jobs and be proud of helping to make better companies if given the chance... without paying worthless union dues.

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19dmets(575 comments)posted 2 years, 8 months ago

If GM plans on shutting down American plants, and import GM cars from China, they should have to give back the American taxpeyers money. The point was to keep jobs in American! I just think it to huge slap in the face of the American working people!

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20VINDYAK(1286 comments)posted 2 years, 8 months ago

American consumers do not automatically buy the "cheapest" products. They buy the best "value" and will spend more if they feel it is a good value. Case in point...Harley Davison...John Deere...Dyson vacuums....Andersen windows....Catapiller....Honda....Winnebago....and the list goes on. Point is, we will buy American or foreign if we are comfortable with the product. Economic conditions will take a role in our buying habits, but name brand products never lose their value if consumers feel those products can be trusted and provide the best possible value for their money.

American automobile manufacturers have lost much of that consumer confidence and it will take years to rebuild. Allowing Chinese imports could create the "Yugo" effect and drive buyers back to American if American manufacturers get on the ball and prepare the long term rebuild. We don't want cheap cars built cheaply. We want our cars to last 5 years, not fall apart or be constantly recalled for 3 years after we buy them.

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21dirtyharry667(7 comments)posted 2 years, 8 months ago

I come from a working class background. In fact, my uncle retired from Honda in Marysville. It simply boggles my mind that these union guys just can't let go of all of these benefits to save their jobs. The benefits my uncle got from Honda are just fine, but what's more important is that they aren't breaking the back of their employer. That means Honda has enough money to build cars people want and invest in their product ... and even though their cars are ugly and dull, they are a sheer joy to drive because they have the money to make them that way.

The union mentality of gimme, gimme, gimme, doesn't work anymore. GM has been hobbled by years and years and years of having a $2,000 per car cost disadvantage. This has forced them to cheapen the cars, to take longer to refresh them, to stick with push-rod engines first designed in the 1950's and 1960's ........ Remember the last-generation Chevy Citation that went 11 years before a re-do?

First priority should be the customer, and providing VALUE to that customer. To do that, the company has to make money and invest in product. Job banks, VEBA, and the rest of their goodies detract from the mission of providing their customer the best product and the best value for the price. These people all lost sight of that, and that's why GM's market share is less than half of what it was 40 years ago.

Anyway, it still befuddles me that nobody seems to understand that GM;'s checkbook has run dry. They can't afford corporate largess anymore. They can't afford to pay people who aren't producing cars. Yet everybody is still acting like its business as usual. You'd think there would be more of a sense of urgency, but I guess none of these people get it. What a shame.

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22smte4pears(18 comments)posted 2 years, 8 months ago

Are all the unemployed autoworkers going to buy the GM cars from China with the income they don't have?

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23Ken(153 comments)posted 2 years, 8 months ago

At least cars are a different topic for Hagan than his usual ones (education and health care). And by the way, now that the Dems have control... what fantastic solutions can we expect to all of "Bush-made" problems. Oh wait, I forgot, it will take years to unravel the mess Bush made!!

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24strojjj(27 comments)posted 2 years, 8 months ago

Dear Mr. Rep. Bob Hagan, Democrat from Youngstown,

Here is what I have to say to you. Go frack yourself, you phoney. It was you left wing liberals who drove our US auto industry into the grave yard. It was 'you' who passed all of the emissions requirements, union requirements, taxation, environmental policies, and what not that drove the companies to where they are today.

Sit down and shut your mouth Mr. Hagan!

America is sick of your kind.

Are you getting angry yet? You should be!

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25NilesResident(14 comments)posted 2 years, 8 months ago

Maybe Hagan should just stick to getting highways built and named after him. Maybe not, it took him almost 20 years to do that last time. His priorities are you and I - his priorities are him.

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26NilesResident(14 comments)posted 2 years, 8 months ago

His priorities should be you and I - but they aren't (last post didn't come out right). Sorry!

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27Rocco(99 comments)posted 2 years, 8 months ago

Hey strojjj - i concur!!! They only have themselves to blame. Nothing changes.....(who said something about CHANGE???)

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28justaskme09(15 comments)posted 2 years, 8 months ago

scrooge..and all you phony right wing cry baby who just want to keep blaming people like pelosi, please stop it.you all have the same talking points (my kid will be paying for this for generation) from your leader rushhh. where were you when mr bush was taking us straight to heckkkkk.

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29justaskme09(15 comments)posted 2 years, 8 months ago

i am a dem who did not like all that bailout crap but what was the alternative. i say let the car come in and the poeple will decide, not politician,union or special interest groups.the union has served it's purpose but it is so outdated with it;s demand and flat out scare tatics. gm will go bankrupt and they will be better for it. the union sadly will have to go .

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30UnionForever(1452 comments)posted 2 years, 8 months ago

No GM cars from China. Ban them now Obama & Congress. We need American jobs and products made in the good old USA. Fight on UAW - keep our jobs safe from those narrow eyed Chinese.

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31VINDYAK(1286 comments)posted 2 years, 8 months ago

What a state of affairs we are in...if GM does not bring in Chinese cars, China will buy up all the ex-GM dealers and start selling their own cars! (They sold 14 million cars in China). Either way, its a lose-lose situation for us.
Meanwhile, Fiat (European) is buying out Chrysler and will close down many US plants and begin selling little European cars.(Fiat only wanted the dealerships). What happened to Jeep?, my favorite at one time. Their products are junk now.
See the path we are blazing? We did not take care of business and now other countries are moving in and taking over. Our unions and executives have milked their companies to the bone and we consumers have to pay higher taxes to buy-out all this mess. In the end, Consumers Lose Again!

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32andersonathan(467 comments)posted 2 years, 8 months ago

Sorry this guy is just on a vote hunt. It is his best interest to be outraged at GM, although he should be outraged at this administration to be honest. My simple solution just buy Toyota, Honda, VW.

And with all these "new" emissions and other green ideas. You will not be able to afford a car very soon and it will not matter where it is made.

So ask yourself is this the "Change" you voted for?

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33cambridge(2282 comments)posted 2 years, 8 months ago

You people constantly complain "why doesn't new industry move to the valley". Maybe anyone considering checked your post and decided against exposing themselves to the negative backward thinking that thrives there.

It's unbelievable that you people would just as soon see Lordstown close, see thousands of your neighbors lose their jobs and the valley lose millions in tax revenue and disposable income. I can only imagine how happy you would be to see those people lose their homes to foreclosure. Never mind that it would further drive down the value of your own home which is already in the second worst housing market in the country. At Least you'll have the satisfaction of seeing more people lose their jobs. Keep urging each other to buy foreign and express hate for your neighbors.

Recently there was discussion about a new local company that makes roof top wind generators. I believe the company had about 300 employees and said they were looking to hire more. Except for the people that worked for the company, every post was negative.

Another recent post was about a local car dealer closing and more than 50 people losing their jobs. Again it seems as though you all are happy to see it. One person even suggested they should take his advice and do as he did. Become a handyman. I'm sure that's exactly what the area needs, 50 more handymen. I'm sure he has no problem paying for health insurance for himself and his family with his new business. I'm sure it provides more than enough for his retirement fund so he can enjoy his golden years.

There is an old saying."you reap what you sow". The valley is exactly what it deserves to be, a crumbling ghetto. If you want to know the real cause try looking in the mirror. Seriously WTF is wrong with you people?

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34shadowman(67 comments)posted 2 years, 8 months ago

What a mess. Sorry, but I don't see much difference between Bush or Obama. They both have bailed out the big businesses while neglecting us the American consumers. Between the funding of the Iraq war and all these bailouts, we have mortgaged the future for many generations. It has already been done. It is history. There is nothing we can do about it but complain. They should at least let our generation get something out of it. Take that auto bailout money and distribute it to each American household with the stipulation that we can only use it to buy a car from GM, Ford or Chrysler that was put together here in an American plant. Obviously new car sales would be up, the company and the dealerships make a profit and we each get a new vehicle. It is the best bailout plan that I have heard of.

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35TylerDurden4Unions(3 comments)posted 2 years, 8 months ago

Just to clarify Dirtyharry's comments...yes, GM pays a 95% sub pay to workers, but it is only for one calendar year, not 3 as he states. This is the first time in 9 years with GM that I've received sub pay on a consecutive basis, so it's not like it's something we get all the time. Also, the "jobs bank" is gone, so quit bringing it up (never experienced it in 9 years, fyi). The VEBA that he mentions is actually a union concession, not a hinderance to GM's overall costs. We voted to give up a portion of our pay to help defray the costs of retiree benefits. I'm also sick of the $73 an hour slams. If you figure in the cost of benefits, then yes, this MAY be accurate, as I've never seen an actual breakdown of this analysis. We're taking home in the neighborhood of $30 an hour while 70+ cars an hour roll down our assembly lines in plants that routinely heat up to near triple digit temperatures, so don't act like we're sitting sipping margaritas in an air-conditioned facility while only popping in one or two screws per car. The past few years have seen unions give unprecedented concessions to GM so quit blaming the unions, its a slap in the face to the men and women who fought for them decades ago when GM had the money to burn and didn't mind sharing the wealth. We know times have changed and we've generously given up any forthcoming contract bonuses and raises, taken on significantly more out of pocket health care expenses, and allowed GM to slash the base wage for new workers to around $14 an hour with a sub-par health-care package all the while inflation continues put a crimp on the power of the dollar. We're willing to do what it takes to keep our jobs and to support our local communities, but if you want us to give everything back, why don't you all give back the 40 hour work weeks and workplace safety measures that unions helped to create?

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36jimiohoh(85 comments)posted 2 years, 8 months ago

Why no mention of Ford? No dealership closings?I guess the UAW reached an agreement with them and all are happy. You know, with the bad reputation they had, police across the country still use them.

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37AXLE69(180 comments)posted 2 years, 8 months ago

Actually UAW labor costs are only 10% of a vehicles price so I`m not sure where the mis-informed are getting the erroneous $2000 figure,maybe from FOX news or the Chamber of Commerce.Keep up the good work Hagan.We need you to counter balance the whacked out neo-cons

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38ThinkFirst(2 comments)posted 2 years, 8 months ago

Let us look at this in a logical manner.

If they build cars in China that will put Americans out of work.
If Americans are not working how can they buy any cars including those made in China?

Shakes head in disbelief at the stupidity of GM executives.

Here is a clue. If Americans are working they are spending. This is a no brainier

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39VINDYAK(1286 comments)posted 2 years, 8 months ago

Cameras, pencils, computers, printers, furniture, clothes, shoes,TV's, radios, lite fixtures, plumbing fixtures, toys, dolls, Christmas decorations, American Flags.......

All Made In China.

For the sake of a lower price.

Our greed for the lowest possible price drove our work overseas. As we continue to spiral down we will replace Kia Motors with China Motors as the cheapest car on the road. Kia will become our next Buick and Chevrolet will only be a memory, just like Oldsmobile, Pontiac, Plymouth, and Thunderbird.

Our social discussions today enjoy bragging about the great "bargain" or "buy" we got on our last purchase. Seldom do we "brag" about purchasing an item "Made in U.S.A." or how we saved a workers job by buyng American. We could care less. We only want the cheapest price. That's the only thing "American" left in us.

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