Looks like the auto industry is at least temporarily completely fucked.  The reason for the talks collapse?  The UAW decided that they wouldn’t do their part in cutting costs.  The UAW was told that the Big 3 employees need to be willing to take pay cuts that put them in line with the Japanese automakers.  The UAW said no, essentially cutting off their nose to spite their collective faces.  Now instead of being overpaid by dying companies, they’re going to find themselves on the dole.

I really don’t get it.  The UAW should better.  If GM files for bankruptcy, first all the common shareholders get wiped out, then they start closing plants and dealerships.  Part of me would like to see a re-org, as these companies have been run into the ground and need to be fixed.  Unfortunately, a re-org will have a disasterous impact on the economy.

I’m guessing that they’ll figure out a way to get it done before any of the Big 3 file for bankruptcy, but I’m dreading watching the opening bell this morning.