HOORAY FOR GEORGE W. GM & CHRYSLER

As you may have deduced if you’ve read my previous posts, (if not, have a look) I am not much of a fan of our President George W. Bush. I have no doubt he’d be a wonderful guy to sit down and have a beer (non alcoholic for him) with, and perhaps a pretzel or two if he promises not to choke, but I must say I’d rather he stayed the owner of a baseball team, rather than becoming the (not very arguably) worst President in history. I often wonder who makes up the 11% of his approval rating, other than wife, daughters, and Vice-President

However, after a good deal of procrastination,he made the right decision to come out in support of auto manufacturers GM & Chrysler, while Ford stayed on the sidelines, for at least the foreseeable future. So I say ATTA BOY! Mr. President. Even though it came at the end of your administration, and brought a good deal of flack from your Republican mates who only wanted to subsidize foreign manufacturers based in their home states, and screw the rest of the nation, you finally got a set of Gonads and got something right! And yet you were still able to maintain your perpetual ambivalence as you consciously authorized just enough to put it onto President Elect Obama’s already jammed “fix it platter.” Good JOB!

We will see in the coming weeks, I believe Europe started already, significant loans to their manufacturers, and the current lion of the industry, Toyota, as reported by Business Week has started a major discount program, and will report their 1st ever operating loss

This is not just a Detroit problem, it is a World Wide economic meltdown, and one of the most important things, we as Americans need to understand, is that we MUST keep Congress accountable as they give away our money to undeserving failed bank executives. We must let them know this cannot continue as we move toward ethics in Government, a HUGE challenge.

If we are going to use bailouts, let’s finance something that can make a difference and provide jobs, like the automobile business, rather than under performing Executive pockets. Now that we as citizens are all partial owners of our GM & Chrysler with our bailout, we should know something about our investment.

LET’S DO SOMETHING GOOD FOR OUR COUNTRY AND BUY AMERICAN CARS!

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Ford's New Look

American Ingenuity is alive and well and living in Brazil. This is the type of goal that can be accomplished when everyone is on the same page! America can compete!

http://info.detnews.com/video/index.cfm?id=1189

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Same Old Republicans??

With the same prevailing attitudes that have reduced the relevancy of the Republican Party over the past two elections, (irregardless of the incompetence of the presidency) they were able to create a stalemate and bring the Auto loan process to a halt. This is a true indicator of what President Elect Obama speaks to when he says we need to operate differently, for the good of the Nation. It is apparent, to me at least, as I have heard Senator Richard Shelby. (Rep) from Alabama, speak out several times against the loan process, that he is more interested in the State of Alabama, than the State of the Nation. In an open letter to Senator Shelby, from Peter Karmanos, Jr., chairman and CEO of Compuware Corporation, to U.S. Sen. Richard Shelby, he quite clearly makes the case about Shelby spearheading the effort to subsidize a Mercedes Benz facility, as well as others, in his state. A true American working for his country, and an excellent example of why we need term limits.

But, although he was a key figure in shooting down the auto loans, he was by no means alone. There were others, in opposition to the loan, but the splits fell mainly by states that had previously subsidized foreign manufacturers to manufacture in their respective states. This to me smacks of politicking in its purest form rather than concern for our nation. Not to mention the fact that many believe that bankruptcy would be less expensive in many areas, then loaning the money. The bankruptcy burden

I am by no means an advocate for blindly handing over billions of dollars to our car manufacturers to continue on the track they had been pursuing through the eighties and the 90’s. But in reality, this is not the case. They have been restructuring for at least three years now, and they currently build cars that are competitive with foreign manufacturers in quality, and at a very competitive price.

I am not convinced that a car czar with unlimited power is the answer to the situation. I believe we need a strategist from outside the business, and I would recommend someone like Michael Porter of Harvard Business School, who recently wrote a compelling article about the need for a US Economic Strategy in Business Week magazine, for which the automobile industry would be a factor for consideration.

It appear as if the last opportunity for some sort of loan will have to go through the White House, and will perhaps represent the opportunity for President Bush to do something good for the Nation. However, at best it will only represent a token of what needs to be done, as it will then be handed off to the already beleaguered Obama administration, that already has a full plate, and an enormous challenge.

I believe that, rather than a car czar with unlimited power, that there be a measurable plan put in place with milestones that when achieved, additional loans may be granted. I also think it is time for the Boards of both General Motors and Ford to step up and be accountable, as there is indeed lots of brainpower in that group. Cerberus to me is quite a different story as they are privately owned by a company that appear to be steeped with cash, and if that is indeed the real story, they should pony up rather than burden the taxpayer with debt for a private company.

This is a very complicated situation, and as I have said earlier, a good case can be made for both sides. But as the world continues to change, and it is changing now faster than ever, we will need to manufacture. Foreign manufacturers now produce cars in America (thanks to State subsidies) creating jobs for Americans, but the profits still go to the home company. I have felt for a long time that we would rue the day we gave up our manufacturing base, but as it evolved with so many industries we were unable to compete with Nations that work for pennies a day and be able to support an American lifestyle.

We are able to compete in the automobile business, as has been proven with the success of GM & Ford on global basis, but we need to bring that success home to America, and it is still our choice if we choose to BUY AMERCIAN and support our companies and their employees.
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Is it in the Bank?

It’s been a long weekend for Congress as they continue to work on the terms for a bridge loan to our struggling US auto manufacturers. No one should believe for one minute that this is an easy choice, as a good case can be made for each side. However with the backdrop of Friday’s Job loss reports of 533,000+ bringing the total job loss for the year over the 1,000,000 mark, I think the decision to go forward with some type of bridge loan as reported by the New York Times is a decision that makes sense.

I watched the debate extensively, and I must say I was impressed with the both the quality of the questions, and the depth of thinking that went into them. It appears as though they will agree on some interim financing that will give the companies life into March of 09, where it will become the problem of the Obama administration.

The CEO’s,Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler, owned by Cerberus, a private equity firm, have all agreed to work for $1.00 annually, and that ought to help bring about a real sense of urgency. It is also a sense of fairness in line with the layoffs that will be coming as they re-structure. No matter what, and President Elect Obama concurs there will be tougher times coming for not only the auto workers, but for Americans in general, as we weather our current recession.

With all that has happened in the auto debates, I still have not seen or heard of ideas that will ensure success. There has been talk of a committee, and we should all know that Washington committees take forever, and rarely produce positive results. I have also heard talk of a car czar with Jack Welch being mentioned, but I would like to see someone of the ilk of Michael Porter of Harvard University (recognized as one of our country’s leading strategists) who recently wrote an article for Business Week on our need for a national economic strategy.

Of course, any strategy the companies look to implement needs to be in conjunction with the UAW and it’s President Ron Gettelfinger, who seems to understand the urgency in getting this done. We are way beyond niceties, and into survival mode. Others that need to be involved going forward will be suppliers, bondholders, and anyone else with equity stakes.

However, no one mentioned above can do anything about the situation as WE CAN, with we being the car buying public. We alone, as suggested in my earlier post, have the deciding power to determine the fate of our automobile manufacturers, buy either buying or not buying their cars. We will be the ultimate decision maker!



Check out the line of cars and special offers of our American manufacturers!



http://www.gm.com/ http://www.ford.com/ http://www.chrysler.com/ Read more!

Can we save our Automobile business

Well, as requested, the auto execs submitted their plans for the future to Congress, and as anticipated, they include employee layoffs, executive pay cuts, plant closings, and the elimination and/or sale of certain brands as reported by the New York Times..

To show their support for the manufacturers, the UAW (check out the FACTS) said it would be willing to work with the companies and have already agreed to reduced/postponed health care payments for retirees and are considering revisiting the Job Bank issue, that guarantees laid off employees 95% of their pay. It is difficult to compete unless concessions are made, and again, not to be redundant, half a pie is better than no pie at all!

Already, more than 900 US dealers have closed over the course of the past year, and the ripple effect of the closings is already being felt in towns throughout the country. However, it would be nothing compared to the seismic proportions of any of the Big 3 going under. All three, are already in the midst of a re-structuring that began 3 years ago, and they, like everyone in the industry is feeling the ramifications of the credit crunch brought on by the sub-prime lenders and their mercenary and unscrupulous tactics. The Edmunds Auto Observer very clearly illuminates what is going on in the industry, and it’s not just the US market, it’s global.

This is, and will continue for a while, to be a very difficult time in the history of the United States of America, and perhaps, just perhaps, it is part of the calling for us as a Nation, that we had the courage to elect an African American to the presidency of this great country! Perhaps it was meant to be and he will turn out to be the right man in the right place at the right time, and we will emerge from this crisis having overcome our issues accepting diversity, defeating bigotry and racism, and re-capturing the spirit and drive that made us the greatest and most envied nation in the world!

To be continued, but for now, let’s together save our auto business and the millions of jobs and benefits it has provided. There is enough on our collective plate without having to deal with another crisis that we can save by BUYING AMERICAN CARS!

http://www.gm.com/ http://www.ford.com/ http://www.chrysler.com/

Let your Senators and Representatives in Congress know that you know what is good for America. Timing is of the essence and critical.

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The American Auto Dilemma.

Buy or Good-Bye, the choice is ours.


When I say the choice is ours, we the people, do have more power than we believe, and it is beginning to morph into it’s full potential as our use of the Internet is bringing us together in common interest “packs”. I say “packs” because that is how we are choosing to come together through converging interests. One of the best illustrations of “packing” is the phenomenon created by our President Elect Barack Obama, who took full advantage of today’s technologies through the use of the social networks, (Facebook, My Space, Google, Linked In, etc.) discussion forums, and every other tool available to reach out to both voters, and potential or new voters, where he ultimately dominated both in fundraising, and as a result, the polls, therefore gaining the Presidency. The constant theme was change, and after eight years of misery, a complete lack of leadership, a financial meltdown, and the worldwide decline of America’s respect and credibility, who wouldn’t embrace change?

I’ll save that discussion for another time, but the point I’m getting to is that any plan GM or the Big Three come up with, must include a much more significant use of the Internet and it’s available tools to reach out to energize and listen to customers, both in it’s efforts in product and research & development. GM has made a beginning, GM Communicates with customers but there is much more to be done, and it must be done with the mindset that there are far more ideas “out there” than inside the company walls, and that customer input, must be captured and developed to foster creativity inside the walls to create a true customer relationship. They must also address as at least what I see as two major issues, those being the perceived quality gap (American cars have consistently improved in the JD Powers ratings), and the huge pricing difference available to a customer if they shop around. The American car buyer seems to feel dealers are ripping them off. Web focus groups could deal with these issues.

With that being said, I am very much in favor of our Government working with, and I hate the term “bail out”, our automobile manufacturers to determine if they really can survive once we get through (if/when) this financial crisis that is not only affecting US manufacturers, but auto manufacturers around the world, most of which are partially subsidized by their respective governments. To better understand where GM is coming from (and the others as well) GM Facts and Fiction, I think, with some facts, rather than news “sound bites” you will better understand why I am in favor of government working with our manufacturer’s when it appears to be against the tide of sentiment. Also, a recent survey by Peter Hart research, Peter Hart Survey sponsored by the auto industry (now don’t be cynical) shows that despite all the negativity, there appears to be (within this particular study) a willingness to give them a shot. I fall into that group and here is why.

I do agree with the Congress, and that doesn’t happen often, that the manufacturers do need to submit a plan with actionable, measurable items, as well as a plan for updating. However, PLEASE do not tell me that Congress will be the deciding or overseeing body, as they have consistently proven they cannot manage what they have already taken on. For a shining example, lets look to the recent and ongoing financial “bailout” where to date, they don’t have a clue where $250 BILLION dollars went, and I’ll bet that the 80/20 rule (Pareto Principal) is alive and well in Congress, and only 20% of our esteemed representatives bothered to read the documents associated with the bailout plan. But again that is for another time. Look at the ongoing demise of our educational system. Despite the fact we have the highest cost per student in the world, our rankings with the rest of the world are sinking rapidly. But once again, another time.

America invented the automobile, taught the Japanese how to do it, and they then went on to do it better. How and why did they do it better? For the how, they listened to an American statistician, Dr. W. Edwards Deming who taught a nation the premises for cost effective and efficient management principles. The Japanese learned, implemented these procedures, then fine-tuned these principles that evolved to Kaizen (continuous improvement), and then further evolved into six sigma, which they then came back to teach us and it became the cornerstone of GE’s growth under Jack Welch. How’s that for irony?

For the why, they had as a nation the sense of urgency we used to have when we were a developing nation. They knew, that as an island nation they had to export to survive, and to do that they had to have quality and value, which became part of their national pride.

The automobile industry is now at the crossroads of a new era with the focus on going green and eliminating the use of fossil fuels so we no longer send billions of dollars to nations that want to kill us. I would still like to believe that we, as a nation, have the capability to band together to lead this effort and develop the vehicles for the future. We need the sense of urgency Japan exhibited as they developed their automobile supremacy. We need to work together as a Nation.

I believe that the current management is getting a bit of a bad rap, because as is the American way, they still had to make quarterly profit numbers to satisfy Wall Street and that, by definition shortens long term focus. As a result, they were manufacturing, and continued to manufacture cars that Americans craved, and unfortunately, those happened to be gas guzzling trucks, Hummers, and SUV’s etc., and boy did they get stupid fast as gas prices climbed towards and above $4.00/gallon. I also am certain there is a great deal of room for improvement.

I’ve often seen the bad rap they get because they make and sell smaller cars into the European Markets. There’s two primary reasons for that as I see it, one being the European road systems do not accommodate larger cars, and the European Gas Prices: are significantly higher than the prices we have paid for years. If we, as a nation, had stayed true to becoming oil independent after the 1972 embargo, after spending hours in line to buy gas, we would certainly have a different environment today. Had we had the foresight, as a nation, and some argue for it now, to impose a gas tax with the revenues going towards developing alternative energy sources, we would not have what we have today. We cannot blame the auto industry for our nation’s lack of commitment to a comprehensive energy program. Perhaps with new leadership that will change.

I believe that as a nation, we have stood by docilely while our leaders negotiated many unfavorable trade policies, that provided minimal protection for our middle class jobs, hundreds of thousands of which have gone elsewhere, with very little chance of returning. Textiles, shoes, furniture making, electronics, software development, accounting and bookkeeping functions, product design, and on and on. Do we really want to sacrifice another industry that involves an estimated 3,000,000 jobs, plus the uncountable trickle down effect, at a time when our economy has already been severely weakened and compromised by a bunch of greedy crooks in the financial business, that in part has precipitated the automobile slowdown, and the resulting credit crunch. We can come up with billions of dollars for them, but as has been the case in the past, We don’t support our manufacturing enterprises that add value. It just doesn’t make sense.

I believe it’s time the United States of America draw the proverbial line in the sand and take a stand as a nation to work together to give our auto manufacturers (perhaps not in their current structure) the opportunity to achieve the goal of re-inventing and revolutionizing the new automobile business. Whether it be through a loan, or a combination of a loan combined with tax credits for buyers, we, as a nation must find a way to make it work! If we can accomplish this goal, we can successfully manufacture cars all over the world, and with a strong home base we could actually add more jobs to the industry. What might that, combined with the by-product of what we learn along the way, be worth for our future?

Our moronic leader(s) for the last eight years (thank goodness it’s almost over) never had the courage or foresight to ask Americans to make a sacrifice, as many before him had. Our willingness to make sacrifices for the good of the country has been part of our history, and one of the many things that make America great. If you followed the Presidential campaign at all, you know that our President elect will not make the same mistake. He realizes and understands the value of working together. After all, he was a community organizer, and aren’t we just an oversized community. Just remember back to September 11. 2001 and the feeling we had as a nation as we jointly mourned the nation’s losses, while at the same time celebrating emerging heroes. Remember the people volunteering, coming to New York from all over the country just to be there to lend a hand. One scene that still stands out in my mind and still gives me goose bumps was when people were lining the streets and cheering for the truck drivers as they were removing the debris from the World Trade Center. Felt pretty proud to be American then didn’t we?

The sacrifice, as I see it, is that we need to buy American cars to support our manufacturers. Together or separately, the automobile manufacturers can come up with the greatest plan in the world, but if we don’t support them and buy their cars, no plan will work. If you must buy an import, at least be conscious enough to buy one that is made in America, so we can at least support the companies that provide American jobs. I understand it is difficult because of trade agreements for the government to put in place tariffs, but they cannot regulate our choices. The power and choice to make a difference is ours!

I am nowhere near smart enough to determine if Detroit can survive or effectively compete with the labor cost structure they currently have in place, or some of the other changes they have to make in their dealer networks to save money, but we, the people, can give them the opportunity to find out, if we buy their cars. If they cannot renegotiate with the UAW willingly (I was always taught that half a pie is better than no pie at all) perhaps bankruptcy will be the only alternative but we need to give them that opportunity by buying their cars.

For decades, Americans have had a love affair with their cars, even before the advent of imports, but the reality now is a call to purpose that only we can accomplish together to stem the loss of our manufacturing capabilities. If we can impact and increase sales of American cars by 10%, in America, we can save our industry and give it an opportunity to survive and repay its debt to we the people. In exchange for our support, any recovery plan MUST offer transparency to build credibility for and with customers

The technology is available to track the information from both sides (supply and demand) and make it transparent so we can all understand what is happening and to be proud of the fact that together, we finally said YES WE CAN compete with the rest of the world when it comes to automobile manufacturing.

To follow is an interesting article I found in the Detroit News.com, and also included are links to the websites for the Big Three. Check them out and see both what they have to offer and what is coming. You’ll find models, pricing, specifications, and the ability to make comparisons with other vehicles. I believe that anyone who is willing to participate in this effort can find a quality car for a fair price without too much of a sacrifice. My fellow citizens, let’s exercise our power and do something good for our future. The choice is ours!

http://www.gm.com/ http://www.ford.com/ http://www.chrysler.com/

Also, if you believe that we should save the auto industry please send a note to your Senators and Representatives in Congress

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This article created on 12/3/2008 is the exclusive property of John Ladge and may not be re-printed without consent of the author. Read more!