Letter By Michael D. Vaughan of Dawsonville, GA

The Senator from Alabama, Richard Shelby, said on Meet The Press that we do not need to subsidize GM, Ford, or Chrysler that would be corporate welfare.

Republican Shelby of Alabama knows that the state of Alabama believes in corporate welfare. Alabama has given Billions in corporate welfare to foreign auto companies. Japan and Europe subsidize their auto companies also.

1. Free Land
2. No Taxes for 30 years
3. Millions to train the workers. In the southeast, Alabama, Mississippi, South Carolina, Kentucky, Tennessee, etc. these southern states have subsidized foreign auto plants. Georgia has given over $400 million in incentives to KIA.
4. Non Union Right to work states are creating Share The Wealth low paying jobs because an auto worker in a foreign plant in the USA with a family of four would pay no Federal Taxes. 70% of the workers have no benefits and make $13 an hour.
5. If you replace union jobs with non union jobs like we have for the past 25 years, you will share the wealth by creating jobs that will pay $13 an hour and no benefits therefore if they have a spouse and 2 children they will not pay any federal taxes because of low wages.
6. Japan and Germany have national health care. This is what the Republicans have called socialized medicine. Health Care is a major reason GM, Ford, and Chrysler cannot compete. In Japan everyone pays for health care including all businesses and corporations. Individual Japanese pay based on ability to pay or their wages. Toyota's rate per employee is 80% less for health care than GM's because of National Health Care.
The Japanese government subsidizes Toyota, Honda, Nissan and several other products that are manufactured. I you do not believe these facts, then Google on your computer "Industrial Policy of Japan" and check out Wikipedia, a free nonpartisan web site.

During the hearings for the American Auto Companies Republican Senator Bennett of Utah stated that the USA may need an Industrial Policy for the American Owned Auto Companies like Japan does for their auto companies.

The Japanese government and the Bank of Japan work hand in hand to provide loans, subsidies, grants, tax concessions, government contracts, foreign exchange rates to make sure no one in the world can compete. What the Japanese government has done for autos, cameras, radios, tv, and other small electronics is similar to what the USA has done for our farmers.

Also during the auto hearings on TV Japan has provided billions for the research and development of the hybrid autos and advanced batteries for Toyota, Honda, and Nissan. Europe and China have provided the same assistance for their auto companies.

All the Billions of profit for their autos sold in the USA goes back to Japan. Not here. America needs to stand up for the American owned companies and keep the billions in profit here in the USA.

In conclusion, American auto workers cannot compete in America because of the Tax Free Subsidizes and Free land for foreign auto companies in the USA and a better health care for business in Japan.

The second largest auto market in the world is China and the #1 auto sold in China is GM and the largest market in Europe is Russia which GM is the #1 selling company. GM builds cars in Germany but not (guess where) in Japan.

Protecting their own country.

Retired GM auto worker for 31 years
Michael D. Vaughan

Contact Region 8
Webmaster John Davis

All information contained with the Region 8 Web Site is copyrighted© by UAW Region 8.
It cannot be reused or printed without written consent from UAW Region 8.


Ron Hendrix