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    CHRYSLER SOLD! KWAME BACKING NEW CHARTER SCHOOLS! JUDICIARY LEADING THE WAY ON BUDGET CUTS?


    By Nick, Section News
    Posted on Mon May 14, 2007 at 07:42:32 AM EST

    Only a couple days after Jennifer Granholm and Robert Ficano made a special trip to Canada to tell the man behind "racinos" that he's the guy to save Chrysler, Daimler up and pulls the rug out from under the governor and sells the company to New York based Cerebrus.

    Maybe this is a new talent the governor's just discovering.  Try to pick a winner and a loser so that the market can correct you immediately.  We'll have to try this one again.  Certainly seems to have worked out for everyone involved.  Well, except the Governor and Robert Ficano.

    The FREEP reports this morning that the buyer looks to be building quite the portfolio:

    In Michigan, Cerberus has recently collected automotive assets beyond GMAC, including auto suppliers CTA Acoustics in Madison Heights and GDX Automotive in Farmington Hills.

    It is also working to buy bankrupt Novi-based auto supplier Tower Automotive for $1 billion.

    Most analysts agree that any buyer will need dramatic concessions from the UAW in order to make a deal work.

    The unions have voiced their strong opposition to private equity firms in the auto business.

    Or maybe not?

    Read on...

    "The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler," Gettelfinger said in the statement.

    This is going to be the big news for a few days here as everyone starts to dig into what it means for Chrylser's plants, employees and suppliers.  It almost certainly signals impending layoffs, closures and benefit reductions.  A company isn't going to buy an albatross that's been strangling another company only to conduct business as usual.  Here's hoping they're able to find the fix they need.

    Elsewhere in Detroit the city's mayor is looking for his own fix to a different broken system.  Public education in Detroit.  Kwame Kilpatrick granted an interview with the Detroit News and Nolan Finley tells us he's going to be pushing the staunchly anti-charter school governor to lift the cap and permit twenty-five new charters in the city.

    There's no way we can redevelop Detroit without a strong education system," Kilpatrick says. "That's why I'm a strong supporter of Detroit Public Schools. But while DPS is getting its legs, we have to move very aggressively to make sure Detroit parents have good education options right now..."

    The charter schools Kilpatrick envisions will not necessarily duplicate what the public schools are doing.

    Rather, Kilpatrick is following the increasingly popular education model of small schools where instruction is tailored to the needs and abilities of individual students. He will recruit businesses and other institutions to help him get the schools up and running, and also to contribute their expertise to the curriculum.

    Now I'd be remiss if I didn't remind everyone that this mayor and this governor both told Bob Thompson, a Michigan philanthropist, to go screw back in 2003 when he offered $200 million (!!!) to build charter schools in the city with one string attached, that they graduate a certain percentage of their students.  Picky picky.  

    So what's changed?  For one, the Detroit Federation of Teachers isn't holding militant protests on the Capitol lawn or at the Mayor's front door.  Yet.  While Kilpatrick's often been a tool of the radical elements of the labor movement he's also been a long-time "supporter" of charters.  The News continues:

    The mayor has first-hand experience with charters -- his twin sons attend a charter school, while his youngest son goes to a public school.

    "That was the best fit for our family, and that's how parents make decisions," Kilpatrick says. "The twins go to an all-boys school that works better for them.

    "We have to make sure all parents have those options so they're not forced to leave."

    I've got a hard time with the Mayor.  Every time I want to criticize him on one issue or another (and there are plenty, believe me) he says something that actually makes sense.  Let it never be said I'm not willing to find common ground with those on the other side of the political spectrum.

    One issue I'm not likely to find common ground with the lefties on the whole mandatory fuel economy deal.  After all, what these guys say and do on this issue has the potential to further devastate Michigan's largest industry.  As the Associated Press reports:

    Obama's speech irritated industry officials. They say the sentiment he expressed -- while shared by other political leaders -- ignores the reality that they are making the vehicles that people in the United States want to buy: Cars and trucks with big engines, towing capacity and room for passengers.

    Now, hot on the heels of Senator Obama's scolding of the big 3 during his trip to Detroit last week the AP has tracked down the positions of a few other Presidential candidates.

    The Democrats:

    Dodd wants to more than double fuel economy standards to 50 mpg by 2017.

    Bill Richardson says the big 3 have until 2020 to reach 50 mpg.

    John "$400 haircut" Edwards wants 40 mpg by 2016.

    And Hillary Clinton's pushed 34 mpg by 2017 in the past but she's expected in the coming weeks to offer more details.  She's clearly out of line with the rest of the "trees before people" crowd and very well could spike her expectations.

    And for the Republicans?

    "I'm not prepared to name a certain number," McCain said in a recent interview with The Associated Press. "I'm hopeful that the marketplace itself and the sale of hybrid cars -- the (Toyota) Prius, electric cars -- would address this issue in an effective fashion."

    Former Massachusetts Gov. Mitt Romney opposes increasing the standards without taking other steps that include increased use of alternative fuels such as ethanol and biodiesel and the development of hybrid technologies, said his campaign spokesman, Kevin Madden.

    Letting the market dictate prices.  Wow.  Radical thinking boys.  

    Finally this morning, the Lansing State Journal this morning is discussing an issue first discussed last week on Right Michigan, the voluntary use of furlough days in the Michigan Court of Appeals and the state's Supreme Court.  

    While Jennifer Granholm still hasn't found a budget fix (her Constitutional responsibility, I'll remind you) for FY 2007 or FY 2008, the courts are taking a proactive stance and solving some of the mess for her.  While the judges are expected to work through the furlough days it isn't just low level support staff who'll be losing some hours on their paycheck.

    Marcia McBrien, director of communications for the Supreme Court, said she'll volunteer to take several unpaid days off as well.

    "I am a single woman with no children. The impact on me is relatively small compared to co-workers who do have families and have dependents and financial obligations," she said.

    What do we have to do to get a little bit of that attitude in the office of the Chief Executive?

    < Political Courage (yet again) | Sak kneeling before the Big Labor altar >
    Display: Sort:
    Message to the Gov. (5.00 / 1) (#1)
    by Spartyfan on Mon May 14, 2007 at 09:33:47 AM EST
    Government can't dictate these huge mergers and acquisitions.  The private sector - with "their" money will make educated decisions.  Clueless politicians just muck up the system and make themselves look silly.

    John Macleroy (5.00 / 1) (#2)
    by PMOTVRWC on Mon May 14, 2007 at 11:53:10 AM EST
    had a few choice words for Obama.  This man is a mental midget when it comes to the auto industry and heaven help us if he were ever to be elected president.

    OPPS, (5.00 / 1) (#3)
    by PMOTVRWC on Mon May 14, 2007 at 11:54:54 AM EST
    I foprgot to add my comments about Governor Jenny......LOL!

    Put all those headlines together... (5.00 / 1) (#4)
    by mikefisk on Mon May 14, 2007 at 12:43:12 PM EST
    ...and it comes to one logical conclusion:

    It's official.  Gehennom has frozen over (and the resulting entropy probably could explain Global Warming, too).

    "To all those whom I have not yet offended: Please stand by, and I will work to remedy the situation as soon as possible."

    The hip hop mayor is playing to the crowd (5.00 / 1) (#5)
    by RushLake on Tue May 15, 2007 at 06:45:00 AM EST
    He has sons in a charter school; "Saint" John Conyers (Kwame's soul mate) has a kid or kids at Detroit Country Day. Its o.k. for the "elights" to be first among equals. What will Kwame's charter schools teach? The three R's and/or what else? Perhaps socialism 101 in all its glory with a good dose of (ad)diversity thrown into the mix. Will these proposed schools have mayoral cronys like Christine Beatty running them? Just a few thoughts that came to mind when I read the article yesterday in the paper. I always wonder what's behind door #2 when it comes to his hip hopness.

    not a fan, huh? (5.00 / 1) (#6)
    by Nick on Tue May 15, 2007 at 05:14:46 PM EST


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