I came across this diary by RiderOnTheStorm at the Daily Kos about some of the terms that we should impose if the taxpayers ...
are going to bailout GM, Ford and Chrysler.
He says, 1. Stop designing and building cars that go 150 MPH and start building cars that get 50 MPG. NOW. It's idiotic and irresponsible to build vehicles that go double the highest speed limit in the country -- all that wasted engineering effort and expense should be going into safety and fuel efficiency.
I especially like point number 5 and think the last sentence of number 6 is spot on. Maybe these car execs who can't think strategically can get a job as hedge fund managers. Oh, wait .....
2. Then aim for 100 MPG. Don't whine that it's too hard: get it done. Or stand aside in favor of those superior to you, who can.
3. Stop building cars that seem designed for the mid-life crises of balding, bulging men. Cars are transportation, not fashion or ego statements, and it's time that both your product line and your advertising reflected that.
4. Stop whining about emission standards and not only meet them, but exceed them.
5. Everything that goes into a car needs to come out of it eventually. Design and build for recycling.
6. Strict executive compensation limits need to be enforced. I propose a ceiling of 10X the assembly line workers' wage. No doubt some executives will resign rather than accept this. This is a feature, not a bug.
7. This is loan, not a handout, and a repayment schedule needs to be attached.
What do you think about companies coming to feed at the public trough. Should we get ownership interest?
Friday, November 14, 2008
Automobile Industry Bailout
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5 comments:
Sounds like the Daily Kos alright.
First off no bailouts for the auto industry.
Failing that, remove the autoworkers union from the equation. Non unionized plants like Toyota, Honda, Mazda (building cars right here in the good 'ol US of A) are not asking for handouts and are making cars that will go 150 mph just like GM, Ford and Chrysler. Their CEO's are making money hand over fist too. So the Kos' manifesto about how to run the big 3 simply does not address the real problem, un-restricted union control over the original American manufacturers.
No more bail outs. If they cannot compete and manufacture products that are wanted by the consumer no amount of government intereference will help them, nor should it. Tear up the blank checks and let the chips fall where they may.
Let them fail!
These interventions do nothing but turn a scrape into a shark bite.
As Atrios says on his blog,
I don't know for sure that just letting GM filing for bankruptcy is the best route, but if it isn't then it just means there's something wrong with our bankruptcy laws and/or our dealings with "too big to fail" companies.
3million jobs directly connected to the auto manufacturing industry! Those of you supporting their downfall are just as likely to not support longterm unemployment benefits. We can't bail out everyone but this industry is worth saving and can turn around.
Let these companies file for bankruptcy and maybe they can turn themselves around into companies that can compete without the burdens of unions and all their baggage. Take the money that would go to any 'bail out' and use it to re-train workers to work in new industries or a downsized, streamlined 'big 3' or big 2 american auto business.
If the big 3 can't compete now and they or the unions show no signs of changing their ways then how on earth will they survive when the Chinese ramp up their auto industry?
A basic question that GM will not face besides the union question; why have Pontiac Buick Chevrolet, Saturn, Hummer Cadillac, GMC etc.... All that engineering to differentiate a Chevy from a Pontiac - for what? Why not devote that brain power into maybe 3 lines and make them the best entry level (Chevy) Mid level (Buick) and high end (Caddy) cars on the planet? Plus 1 truck/light truck line (GMC) and be done with it? The multi platform business plan made sense in the 50's-60's (There was only GM, Ford, Chrysler-maybe AMC as a bit player) but no longer when every country on the planet offers multiple lines to choose from. If they can't recognize this simple fact they should not be bailed out.
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