On June 18, the U.S. International Trade Commission ruled 4-2 that China was flooding the U.S. market with low-cost tires. The United Steelworkers Union filed the complaint, saying 5,100 U.S. workers have already lost their jobs and 3,000 more are in danger of losing theirs this year. The union also said the volume of Chinese imports rose 215 percent from 2004 to 2008, reaching 46 million tires valued at $1.7 billion in 2008.
Last week’s Chrysler-Fiat alliance cements a total federal commitment of $33.48 billion in federal loans and aid to the Chrysler Corporation, its suppliers, and Chrysler Financial. The billions were committed through last year’s TARP legislation and Barack Obama’s $787 billion stimulus bill passed in February of this year.
All you need to know about the dynamics behind the Chrysler-Fiat “Alliance” being pushed by the White House — and temporarily stayed by the U.S. Supreme Court on June 8 — is the following quote from a story on Bloomberg.com the same day: “Chrysler said the sale, which would transfer its Jeep, Chrysler and Dodge brands, would help save 38,500 jobs, plus those of workers at its suppliers.” Put simply, the White House is driving the bankruptcy deal in order to be able to claim it “saved jobs.”