Friday, November 07, 2008

UAW VP: Banks Are Scapegoats

This is an interesting way to phrase it:

"I'm not going to worry about things I can't control, but definitely I'm concerned," said Jeff Carter, vice president of a UAW local that represents 4,200 workers at a Ford truck, car and stamping complex in Wayne, Mich., near Detroit. "If the banking industry doesn't loan the customers money, there will be nobody to sell products to no matter what you've got to offer."

The quote is in the middle of an article detailing the woes of the automotive industry. It's serious: GM and FoMoCo are expected to announce huge losses (again) today, along with layoffs, shift reductions, and other cost cuts.

But Carter's remark, which pins the tail on the banking industry, is curious. Banks lend money if they think they will get it back, not because the auto industry 'needs' it, nor because customers 'need' it.

Or is something changing here?

No comments: