I wrote previously about the BIG 3 Detroit auto companies going to Washington to talk to President Bush. I speculated about what they might ask the government to do for them and I ventured to say - provide us a level global playing field.
Not much was reported about the meeting except that “dialogue” will continue which means absolutely nothing.
Our local news media though went bonkers, painting the meeting as a cry for help that Bush and the Republicans rejected. They showed Michigan Democrats saying wait till we get into power, we will do something to help our poor state and our poor auto industry.
Well, to me this is plain politics and plain socialism talking. Our auto companies on the one hand want government to stay out of their affairs (no mandatory miles per gallon laws) and on the other hand, how about a bailout. In other words, they will do what they have to do and what they can do, to help themselves.
The Wall Street Journal had a good editorial November 16, 2006 titled “Detroit and Bush”. Basically they said that the Big 3 are in trouble because of “self-inflicted wounds” and they are absolutely correct; wounds that foreign auto manufacturers with factories in the U.S. do not have.
Let me give you an example of a wound: GM’s Jobs Bank. This is a jobs bank where thousands of workers are paid to do absolutely nothing – make sense to you?
Another wound is Ford not having products that any body wants to buy. My family has always bought Ford products (we get the A Plan) but next year we may have to go elsewhere because, quite simply, Ford does not have a car/van or truck that interests me.
Legacy costs are the biggest drain on the Big 3. This is the money spent on retired workers. Yes, the Big 3 promised them the world but now they cannot deliver. This is not fair to the workers that retired thinking they are all set for the rest of their lives but on the other hand, if the companies fold, they have nothing, so taking less to help the Big 3 stay afloat is a smart thing to do and unavoidable.
But I think the Big 3 wants the taxpayers to bail them out of their legacy cost obligations. Michigan Democrats will be in power and they are, after all, loyal Michiganders that want to be re-elected. They are also flaming socialists that feel the government / taxpayer should pay for everyone’s healthcare costs – why not the retired auto worker’s health costs.
I mentioned a level global playing field where trade is really free without protectionist laws or currency manipulation. Well, if you look at the domestic market Toyota is kicking our butts and they make the product here just like the Big 3 - so the playing field IS level.
Overseas, the only problem country is Korea that has some protectionist provisions in place. They should be made to drop them – period.
The Big 3 auto manufacturers know what they need to do to become competitive. Asking the American taxpayer to bail them out is rewarding their stupid decisions in the past.
I have family members that are auto company retirees and I don’t want them hurt but big steps need to be taken if the Big 3 are to survive.
Buying out current highly paid workers and replacing them with workers paid a realistic wage is a big step.
Retirees over 65 should depend on Medicare with a “plus” provision paid for by the auto companies. Currently, many retirees have two overlapping health policies and that is just plain stupid.
Shift all current employees to one health plan: HMO and negotiate the best premium price.
Create clinics in all plants (like the Japanese do) to handle simple minor health problems quickly and efficiently.
Build products people want to buy – get smart and creative – like the Japanese and Koreans.
Get rid of waste – plants – people – programs – etc.
Follow sound business rules of behavior and reward management and managers ONLY if they actually do something that calls for a reward.
I could go on and on ……………………………………………………………
Not much was reported about the meeting except that “dialogue” will continue which means absolutely nothing.
Our local news media though went bonkers, painting the meeting as a cry for help that Bush and the Republicans rejected. They showed Michigan Democrats saying wait till we get into power, we will do something to help our poor state and our poor auto industry.
Well, to me this is plain politics and plain socialism talking. Our auto companies on the one hand want government to stay out of their affairs (no mandatory miles per gallon laws) and on the other hand, how about a bailout. In other words, they will do what they have to do and what they can do, to help themselves.
The Wall Street Journal had a good editorial November 16, 2006 titled “Detroit and Bush”. Basically they said that the Big 3 are in trouble because of “self-inflicted wounds” and they are absolutely correct; wounds that foreign auto manufacturers with factories in the U.S. do not have.
Let me give you an example of a wound: GM’s Jobs Bank. This is a jobs bank where thousands of workers are paid to do absolutely nothing – make sense to you?
Another wound is Ford not having products that any body wants to buy. My family has always bought Ford products (we get the A Plan) but next year we may have to go elsewhere because, quite simply, Ford does not have a car/van or truck that interests me.
Legacy costs are the biggest drain on the Big 3. This is the money spent on retired workers. Yes, the Big 3 promised them the world but now they cannot deliver. This is not fair to the workers that retired thinking they are all set for the rest of their lives but on the other hand, if the companies fold, they have nothing, so taking less to help the Big 3 stay afloat is a smart thing to do and unavoidable.
But I think the Big 3 wants the taxpayers to bail them out of their legacy cost obligations. Michigan Democrats will be in power and they are, after all, loyal Michiganders that want to be re-elected. They are also flaming socialists that feel the government / taxpayer should pay for everyone’s healthcare costs – why not the retired auto worker’s health costs.
I mentioned a level global playing field where trade is really free without protectionist laws or currency manipulation. Well, if you look at the domestic market Toyota is kicking our butts and they make the product here just like the Big 3 - so the playing field IS level.
Overseas, the only problem country is Korea that has some protectionist provisions in place. They should be made to drop them – period.
The Big 3 auto manufacturers know what they need to do to become competitive. Asking the American taxpayer to bail them out is rewarding their stupid decisions in the past.
I have family members that are auto company retirees and I don’t want them hurt but big steps need to be taken if the Big 3 are to survive.
Buying out current highly paid workers and replacing them with workers paid a realistic wage is a big step.
Retirees over 65 should depend on Medicare with a “plus” provision paid for by the auto companies. Currently, many retirees have two overlapping health policies and that is just plain stupid.
Shift all current employees to one health plan: HMO and negotiate the best premium price.
Create clinics in all plants (like the Japanese do) to handle simple minor health problems quickly and efficiently.
Build products people want to buy – get smart and creative – like the Japanese and Koreans.
Get rid of waste – plants – people – programs – etc.
Follow sound business rules of behavior and reward management and managers ONLY if they actually do something that calls for a reward.
I could go on and on ……………………………………………………………
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