Welcome to the Finger Lakes! Our theme song:

In a town this size, there's no place to hide
Everywhere you go, you meet someone you know...
In a smokey bar, in the backseat of your car
In your own little house, someone's sure to find you out
What you do and what you think
What you eat and what you drink...

(Kieran Kane)

Tuesday, February 28, 2012

US taxpayers buying into French automaker?

1983 Renault Alliance

Congratulation, Finger Lakes taxpayers, you're now going to subsidize the French auto industry.  Our own government-run car company sees opportunity in the land of escargot.
PSA Peugeot Citroen may announce as soon as this week plans to sell a stake of about 7 percent in the French carmaker to General Motors Co. as part of a development alliance, people familiar with the matter told Bloomberg.
GM, which still owes billions to US taxpayers, has been using those confiscated funds to dish out big bonuses to the same employees who ran the industrial giant into the ground.
Does it make sense that a company who can afford to pay bonuses needs government subsidies to sell its cars, like the Chevy Volt?
According to all the reporting news sources, most managers could see bonuses for 2010 equaling 15 to 20% of their annual salary. Other reports are indicating as much as 50% of salary, while some blue collars might merely get $10K on average.
Question is, why is there any bonus at all at GM?
It is no small thing that General Motors and Chrysler are still in business today, due to the extreme generosity of the American taxpayers.
So, why should either company even think of giving bonuses to the blue collar and white collar workers at all before paying back the loans?
For those with short memories, the rotting hulk pictured above is a Renault Alliance, the ill fated offspring of the last time a US automaker got in bed with the French.

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