Detroit's Delusion

I have summarized all my thoughts on why we must provide loans to the Detroit 3 here...

http://uh2l.blogs.com/things_ive_noticed/2008/11/weve-heard-a-lot-of-news-from-the-press-lately-about-the--dire-situation-the-american-automobile-industry-is-in-in-pa.html

How about this? There are two small trucks in the mall parking lot. Both are 10 years old, both are silver and both have 110K miles. Neither truck has ever carried a load or been off road. One of them looks and runs fine - no issues at all, and no major repairs done in the past - it appears it could go another 110K miles. The other truck has pealing paint - a rusty bumper, doors that don't shut right, a rebuilt transmission, a new valve cover gaskets that still leaks, a loose front end, squeaky breaks, and some strange wires that dangle from a loose and rattling dash board. Which truck is the Toyota Tacoma and which is Ford Ranger? Which one sounds the most like it could be a Chevy S10?

What is hard to understand is why are we bailing out the financials and NOT a strategically vital industry which actually makes "something." These companies would not be having this problem IF the finincials didn't screw up the markets.... people would have jobs and buying needed cars with loans made (as before) by the banking industry.
Did the Financials need to explain to Congress why they need the money? uuuuuh no, but they get billions as a bail out. My understanding is that Detriot is NOT asking for a bailout, but a loan. Did AIG ask for a loan? CITI-Bank?
Makes ya wonder.

Consumer Reports ranks almost all of the American autos much lower than they rank almost everything from Honda, Toyota, and Subaru. Resale value also is lower on American cars. Picture two 10 year old sedans parked in a parking lot at the mall. They are both red, and they both have 130K miles. Lets say one of the red cars looks and runs fine. Now lets say that one of is leaking oil and antifreeze. Its paint is pealing and it smokes and rattles. Which car is the Honda and which is the Chevy?

It's not just that their business model is broken. They've done little to nothing to prepare for the future and have, in fact, done everything possible to derail projects that meet the public's desire for energy efficient alternatives to the archaic gas guzzlers that Detroit tells us we want.

Let them burn in the hell that they have created. (Is there any way we can demand a refund on those CEO salaries, and the unions pay for no work rules that were designed in Fantasyland?)

It really is time for us to put our money where our mouth is. If capatalism is our way, the the market must decide a company's fate. Detroit has blown it, they should suffer the consequences. Yes, this would ripple throughout the land, but that's only because this nation has been complicit. We did not demand fuel (and cost) efficient vehicles. We have repeatedly "bailed out" these companies. We have let the money grubbing union executives pull the wool over our eyes with the guilt trip of job loss. If they were truly skilled, valued workers, they could ply their trade anywhere. Companies fail and people loose jobs everyday; what makes these employees any less deserving of their fate. There is a large, bitter pill to swallow. We'd best get started cramming it down our throats so we can let this medicine begin its healing.

GM,s Buick has the second highest volume of sales in China. GM should be obligated to sell off their interests to pay for US needs.

The simple fact is that one of these companies needs to fail. There is simply not enough demand to support the big three. It looks like Ford will be in the best position to weather the storm, but one of the other two simpy has to go. How delusional are these union workers? The companies are bleeding literally billions of dollars a year and they're still holding on to the idea they're owed something which quite simply isn't there. I wouldn't approve of any bailout unless the unions were completely disbanded. Really, how often do you here someone talk about wanting to buy an automobile from one of these companies? People are excited about getting a honda or a bmw or pretty much any car other then one from these companies, and that's in the U.S.. Go to Europe or Japan and you won't see many Chevys. Their product simply isn't as good as the competition and unless they are allowed to fail there will be no changes made in their production techniques. People aren't interested in gas guzzling cars with no resale value that have high maintenance costs. There is some sentiment that there will be this huge ripple effect if these companies fail and I just don't see it. Propping up an obsolete company so some people can have jobs in the short run is a terrible idea. We're just continuing to create massive bills for our children. While were at it we should have the taxpayers foot the bill for some telegraph companies and maybe some steam engine producers.

Loan or no loan let's face the fact that USA is not very united. The gap between rich and poor is getting bigger. Salaries of CEO's in all industries, Doctors, Professional Athletes etc are obsurd. This country is all about ME. If Obama goes ahead with the Govt programs to increase jobs and the economy by re-building our infrastructure there will be firms screwing the govt on price and more CEO's becoming filthy rich off the tax payers. I work in one of the many sub-sets of the auto industry and if everything goes belly up we will all be in bankruptcy court anyway. As far as management and unions, my experience shows when workers are treated fairly there is no use for a union. When management is corrupt and unsafe, you do need a union. As far as the UAW, I have been in many GM, Ford, Chrysler plants from transmissions, to stamping to assembly. Many workers are legit. But I have seen my share of sleeping, reading and otherwise wasteful use of time. Alot of you all are like teenagers now days and you do feel that your entitled. Entitlement is imbedded in the UAW autoworker.

Everyone must consider the ramifications if our largest industry goes away. Millions of us linked to the industry directly will effect tens of millions who are not directly related. If I can only make my house payment and my used car payments, there is nothing left for cell phones, cable, small mom and pop eateries, fewer haircuts, no more downloads, fewer Dr visits and hospital tests. I won't be putting in replacement windows or buying a new computer.

We are already in the endless circle of cause and effect. We spend more than we make, our debt is disgracefull, investbanks have screwed us all, US auto industry is really screwed up. Unions and Executives and Politicians are out of control. There is no work for the legit unions who protect us through their work, eg electrical, masonry, plumbing, construction-workers, etc.

An honest days pay for an honest days work. It's gonna be a long couple of years.

Bailout money is nothing more than welfare for business's that rewards greed and corruption. The UAW members still have to vote to accept any contract modifications put on the table. I believe they will vote it down as they would rather loose their jobs than give GM a break.

My wife and I have both driven foreign cars for the last few years, and neither has required anything more than routine maintenance. I briefly owned a Chevy S10, and that cursed thing required so many major repairs within just 2 years...buy Honda, Hyundai, or Toyota if you want a reliable vehicle.

I used to drive GM products back in the 60's and 70's. They are just a bunch of crap made vehicles now. Look at all the recalls. I don't want to buy a GM product that is just thrown together and then have almost $2000.00 extra tacked on the end of my purchase contract to pay for some laid off workers 95% percent guaranteed pay check while I struggle to make a new vehicle payment and hope that I will be able to keep my job which has no "guaranteed" 95% paycheck.

I drive a Dodge pickup and that is all I will buy. We have five of them from a 95 on up to a 2003 and we have "knock on wood" nothing go substantially wrong with any of them. They are used hard too. Three in construction clean-up work and two for working around our ranch. They are "Ram Tough" and they hold together.

We had to give up on GM and Ford pickups, as they were always being recalled or just are not made strong enough to stand up for what they were designed for. Whose fault is that? The workers and designers for both those companies. The workers don't care about their work, they know they are going to get those BIG OLE UNION SEE TO IT PAYCHECKS! So, why take pride in your work. The CEOs they know they are super wealthy and phooey with the little guy.

Have you ever had to take a GM product back in for something wrong with it? Well, that is an experience in itself. They will accuse you of doing everything in your power to have done something to their "fine product."

I have to say sadly I too am for not bailing out the industry. It is a black day for America and possibly millions of families, however it is clear that the Big Three are a complete failure. The failure is a question of greed and poor management. Since World War II the American industry only focused on the almighty dollar not the quality of their product. The Japanese products have had a reputation for quality far superior to their American counterparts. In turn today you get a product that will probably last longer with less maintanence and will resale for thousands more than any American competitor. For most people it is a no brainer; save thousands or buy American. Everyone, except for the UAW members, know they make way too much money for non-skilled labor and this in turn only contributes to American inferiority in the market. Hell, even the CEO of Toyota makes $1 million dollars compared to salaries as high as $22 million for our CEOs.

If the government and the Big Three are serious about American tax payers bailing them out; one make a better product, and two give the American people an incentive to buy your product, i.e. tax break, or lower sticker prices. Make the overall decision alot tougher for us when we are considering what car to buy!

What about us homeowners that are facing foreclosures? Who cares about a new vehicle when we may lose our homes. Are we the American people stupid enough to want to buy a vehicle, any vehicle right now when we are losing our jobs, homes, retirement funds, savings, etc. You get the picture! The Big 3 need to go bust. The UAW needs to go completely away and the people receiving the big paychecks for being laid off need to realize the real way of life as it is now.

I and others like me do not care if the Big Three crash and burn. We care about our families, being able to have a job, and trying to take care of the vehicles we have and pay for them. A "new car" does not make you. If you can't afford to buy it, drive it, nor pay insurance on it, then guess what? You don't need it!

We the people of the USA needs Congress to help us keep our homes and be able to buy groceries, buy helping us keep and have jobs. Not help a bunch of "rich cats" keep their auto dealerships and their big salaries.

The next step Congress needs to do is abolish the unions. That would be the first big step in getting the economy back on track.