Actual Detroit Automotive Human

The Biggest Problem Detroit's Big Three Face

We are in a time of economic transition and there are always big losses to the outgoing industry and gains to the incoming industry. BUT let's not oversimplify the situation by saying that GREEN jobs will be a 1:1 replacement for automotive jobs.

Renewable energy is a good direction for Americans moving forward, but not the solution. Like it or not, we need oil and coal to power our society.

A Solution for General Motors

I like the basic outline of this plan, because it considers the impact and responsiblity of the different participants of operating the Automotive business. Given the current situation, everybody is going to have to take a hit as unfortunate as it is.

To those of you who still expect business as usual over the past 30 years, I suggest you read a book called "Who Move My Cheese". It should help you understand that the cheese has been moved, permanently and its time to find another stash of cheese to feed on. This is not a slam, but a suggestion to help us move forward as people that have been fed off automotive.

Direct Big 3 employees and UAW workers are not the only ones hurting. Many suppliers have gone under and their previous employees have had to move on. Detroit is an economically depressed area for those of us who live here. It may be time for us to look for greener pastures in other states where the ecomony is not based so much on manufacturing...

Do the Automakers Deserve a Bail Out?

Wow, it's amazing how people from the outside of Detroit look at the tea leaves and tie some macro events to the current situation and think they have the recipe for why things are.

Detroit was on a path for RECOVERY and health this year based on aggressive cost cutting, white collar buyouts. natural attrition and launching new vehicle platforms that would produce higher profits with MUCH higher fuel econony even compared to the Japanese car makers.

Let's first recall how the gasoline prices were artificially inflated over the past year. There was no REAL change in demand and but there was a REAL change in supply by the foreign oil producers as far back as December 2006 when they cut output, which drove up prices. This past summer when gasoline prices max'd out at over $4.00 at the pump all the GREEN folks cried "the SKY is Falling, the SKY is Falling..." and the media just rode that wave along with the rest of the "believe anything" market. The investors that snapped up the futures contracts amidst a sharply rising market are to blame for the ultimate spike in fuel prices because they were able to sell them quickly for a profit. Then when the prices hit their high point as a result of Americans cutting fuel consumption, there were a ton of contracts flooded into the market. Now with over supply in the market, we have seen fuel prices drop like a brick to below $1.99/gallon (I am happy about this myself). So where are all of the GREEN folks today???? I guess they loved having an idicator that proved their falicy about the HUMAN race over consuming our natural resources to death.

So this spike in fuel is the culprit for killing the market. Had fuel prices not artificially spiked, we would not likely have this debate today. While I have long scratched my head at the actions of the Big 3 management, I can assuredly say that their efforts are well planned and executed, but this market condition has exceeded EVERYBODY'S worst case plans upstaged their efforts.

We can also blame our Democratic friends on Congress that allowed the Banks to go after subprime mortgages. Wall Street and its greed has more to do with the current condition than anybody. Yes, the Wall Street folks wanted a measly $700B to line their pockets, I mean bailout their ailing institutions just to keep things going, but Automotive which is the backbone of industry and drives and employs the majority of America is not worth it. Let's just throw those Automotive people on the streets... I DISAGREE!

The Big 3 negotiated $25B IN LOANS a few months ago with the government as a result of the worldwide crash. THESE ARE NOT HANDOUTS AS THEY ARE TO WALL STREET. They want access sooner rather than whenever Congress gets around to it.

There is no doubt that the Big 3 have not payed attention in past years to the needs and desires of consumers on the styling side, but you absolutely cannot say that just because the Japanese have a hybrid vehicle that it will save the USA! Americans have much more diverse needs and resources when buying a car than just fuel economy. So I disagree that they are behind the ball as both Ford and GM have hybrids AND very fuel efficient larger vehicles with the cylinder deactivation systems. Just because they don't pander to the GREEN folks, does not mean they are indifferent to fuel economy.

Why don't you ever blame John Q. Public for being the ones that BUY the big trucks? If they were NOT so popular and were so evil, than why have so many people bought them??? The answer is because the Big 3 does a great job on those vehicles and Americans LOVE THEM. Even Toyota and Nissan are on that bandwagon.

The comments in the blog above about prices being too high are laughable. If you look at the technology offered in the vehicles today vs. the price and then adjust it to 1984 or 1970 dollars, the value of a vehicle is off the charts today. Complainers also should look at their increased salaries since 1984 or 1970 and compare their vehicle choices and technology as a percentage of income and they would see that they are greatly better off now than before.

Be careful when you folks in the media write opinionated articles and mix Micro outcomes with Macro events and make statements that further pump up the uninformed, but happy to complain crowd.