Tuesday, December 16, 2008

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!


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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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