UAW says Detroit collapse is not its fault


The UAW says that troubles in the car industry are not its fault. According to the union, it was not a series of bad decisions by management either.

"This industry is in a crisis situation not of its own making," Ron Gettelfinger said in an interview Saturday afternoon with The Wall Street Journal (subscription required).

The statement is worth a bit of examination.

Gas prices have been historically low, well under $2 a gallon. The real spike is only a year old and the price per gallon is now back to $2 in many regions of the country. So, did a price pop which lasted three quarters of a year bring down The Big Three?

The other culprit Gettelfinger points to is the problems in the credit markets. Most consumers did not have trouble getting car loans as recent as this summer. Auto companies were offering zero percent financing and thousands of dollars in cash back Buying a car on credit was as easy as getting a subprime loan was three years ago.

The UAW did not ask for exorbitant wages and benefits over the last four decades. Management at the car companies did not rely on SUVs and pick-ups for profits even though they had seen the tremendous damage that the Arab Oil Embargo did to their finances in the 1970s.

In other words, no one involved in the car industry is to blame.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Reader Comments (Page 2 of 2)

Symbol Lookup
IndexesChangePrice
DJIA-6.6612,496.15
NASDAQ+11.042,850.12
S&P 500+2.231,318.86

Last updated: May 23, 2012: 05:19 PM

Hot Stocks

General Electric

19.180.00(0.00)

Alcoa

8.61+0.12(+1.41)

Apple Inc

570.56+13.59(+2.44)

Google Inc 'A'

609.46+8.66(+1.44)

Bank of America

7.17+0.19(+2.72)

Wal-Mart Stores

64.58+0.85(+1.33)

Exxon Mobil Corp

82.04+0.09(+0.11)

Ford

10.41+0.22(+2.16)

Citigroup

27.15+0.23(+0.85)

IBM

196.12-0.70(-0.36)

Yahoo

15.38+0.09(+0.59)

Starbucks

55.29+1.92(+3.60)

Microsoft

29.11-0.65(-2.18)

Home Depot

48.74+0.48(+0.99)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1337807972098 ms.