Yesterday, Dana Corporation, a large supplier of axles, wheels and other components and systems to the big three declared bankruptcy.It joins Delphi, Lear, Collins &Aikman and Oxford Automotive as the suppliers who have sought protection from creditors.As usual the vulture capitalist, Wilbur Ross, was waiting in the wings to pick the carcass clean.
In the procession of bankruptcies, plant closings and large losses in the automotive industry one can see the writing on the wall for GM, Ford and Chrysler because all this wave of bankruptcies is due to reduced demand for components at the big three.
Looking at the way the steel industry was liquidated and picked clean, the automotive parts industry looks like it is getting ready for a similar treatment.The bankruptcies are a prelude to transfer all the pension and medical liabilities to the Pension Benefit Guaranty Corporation, a taxpayer supported agency.Once that is done, Wilbur Ross and his trojan horse protege, “Steve”Miller at Delphi will package several of these dead entities and sell them to the highest bidder cleaning up in the process.
The tax payers who added value to these dead corporations by accepting the liabilities will be left high and dry while Wilbur Ross and Steve Miller will be laughing all the way to the bank.
Isn’t capitalism grand?
