Automotive Bailout

Now, I am not a fan of seeing any one of the Big Three go out of business; however, I am not a big fan of a bailout either. If a bailout is approved, there should be an equally significant change in the management structure and each of the organizations as well. We are about to award the executive management of each of these organizations for leading their respective companies into this situation.

They will argue, it is the economy, or it is the foreign automakers, a combination of the two, or a number of other situations out of their control. What happened to taking ownership of the problems you create?

I have not been hiding under a rock, I am well aware of what is going on with the economy. Yes, our economy is suffering, and it will only get worse before it turns for the better. So, I ask, will this bail out all of a sudden have consumers rushing to buy or lease a car? I think not. This "bridge" loan is not the answer.

The big three has too much inventory on their hands, and not enough buyers. If it were not for the pending holiday shutdowns, I wonder, would they be cutting back on production. Let's give them the benefit of the doubt and say they would. The laid off line workers would no longer show up at the plant, but guess what, they still get paid a crazy percentage of their pay. What a deal, a deal that has led to financial ruin. And you want me, the averaged Joe, to pick up the tab? And, I get no stake in the company. What happened to a company doing well, winning investor confidence such that we bought their stock? I am basically being forced to watch my tax dollars invested into their failing business model.

Oil, you say the rise in the price of oil caused this? Well, several years ago, let's say 5, I can recall some interesting conversations regarding what we heard in the news, trends at the pump, and commercials we all were exposed to on a daily basis.

At the time, gas prices did not fluctuate or rise as rapidly as they did this past year, but they were trending up. Yet the lineup from Chrysler, DiamlerChrysler, at the time, was so gas guzzling focused with their products sporting the HEMI power - Dodge Ram, 300M, Durango, Jeep Grand Cherokee, to name a few, and don't forget, the SRT-8 versions. Can you hear the question, "Does it have a HEMI?"

Ford and GM are not without fault either, with their large SUVs. However, GM stands out rather infamously. Today, they will tout that they are charting a new path to alternative fuel, they have a lineup of Flex Fuel vehicles, and they are excited, rightfully so, to tell us about the pending launch of the Chevy Volt. So proud they are of this product that Wagoner pulled up to the Congressional Hearings in one to show the Nation what they call The Extended-Range Electric Vehicle that is redefining the automotive world. I ask you GM, Mr. Wagoner, why did you kill the EV1 program in 2003? I hope the answers are not the answers one can find in the documentary - Who Killed the Electric Car? For the curious, this film can be found at most libraries.

Foreign competition is a fact of life in our Global Economy. It is capitalism working the way it is intended. When you are the only game in town, you can afford and choose to charge what you want. You can afford to compensate your employees well, but when your product and/or work becomes a commodity, prices drop, wages drop, it sucks, but it is reality. If the transplant auto manufacturers can build plants in Ohio, Tennessee, Kentucky, South Carolina, Alabama, and run them with out a union, and be successful, well, it is time for a change.

The argument of buy American does not float either. If the transplants are building on American soil, are they not putting Americans to work in America with wages that will be spent here in America? Their dealerships employee sales and support staff, who earn a wage here in America and spend here in America. Yet, the Big Three build vehicles and engines in Mexico, Brazil, Canada, etc. Not to mention, the equipment used to build and convey the vehicles in the plants are often manufactured by a non-American company. We don't need to talk about part suppliers too, do we? The American consumer should not be forced to buy a specific brand, how un-American is that?

The bailout is not going to solve the problem, it is a band aid, it will help to stop the bleeding, but the wound will remain. There are serious issues to resolve, and it unfortunately is not a pretty picture, it will have to get worse before it gets better. I realize there have been significant cuts, but if they are still asking for money to keep operations running, then maybe the operations are too large for the demand for their product.

~the pulse beats on