HUGE Depression Looms
Think for a minute what your town will resemble once Congress leaves the American Auto Industry to twist in the wind. What kind of spirit will people have when they drive down the miracle mile of the local dealershis and see that all the dealerships have only foreign cars. We are already close, but you have to board up the windows of the American dealerships to really get the picture. You also have to question how the rest of the automakers will make it as overnight the economy goes Supernova and more then a million jobs turn to dust.
Having the Connecticut dealerships represented in Washington DC today provided a better look at the gravity of the present situation. Connecticut lost 25 dealerships this year alone. The 29th most populous state might offer a pretty good representative of average America on the one hand, but due to it's population density, it is actually a poor example. Less densely populated states with more isolated communites are going to suffer much worse then this. It seems probable that the "death toll" will continue to rise in 2009 as well.
If one listens objectively, one has to admit that Detroit has already been tranforming itself. They began long before Paulson cried, "Uncle!!!" The recently released fact that we have been in a recession for more then a year is NOT news to Detroit. In fact, one could argue it is not news to any other automaker in the world. Those foreighn auto makers are also begging their government for assistance as well. Detroit is assking for loans in a credit crisis. If Wall Street has $700 billion, why aren;t they lending Detroit the money? Detroit is asking for a small fraction of the funds being given to Wall Street.
What the US automakers have not yet been able to achieve is a perceptive change in the American people. Has anyone ever truly let it sink into their heads that Chevrolet has more vehicles doing better then 30 mpg then any other manufacturer. I assumed that honor would go to Japan, or Korea! Didn't you? Did anyone know Chrysler is actually the leader in electric cars at this time? The Chevy Volt is soon to arrive. It's far past being a concept car. They're simply fine tuning the final poroduct at this point. But I thought the leaders were Honda and Toyota in the race to power vehicles with alternative energy? In fact, it is not so.
It seems this whole attack on the US auto industry is nothing more then union busting. There is a great deal of resentment that autoworkers have managed to retain their pensions and their healthcare. It's not fair!!! What? It is not fait that autoworkers have managed to retain their benefits, or that others have lost their's in industries that lack organized labor? People should realize that maybe, if they had stuck together, they would not have lost been subject to the broken promises. They could have had someone at the table who truly represented them. Bash the unions, but it's better to have soe evoice at the table then none at all. It's better to have another set of eyes on the books then just the owners/managers.
Michael Jordan's late father used to ask, when someone would question him whether the glass was half full or half empty, "Who's pouring?" Congress is pouring and they have filled the glasses of Wall Street and the are neglecting not merely Main Street, but the Miracle Mile. This will be the end of the American dream if we let the domestic auto industries fail. But it will be the beginning of a new world order, one where workers have less say in how they are compensated. In twenty years, when people ask an old, frail Dubya how did his Presidency go he will say only two words, "MISSION ACCOMPLISHED!!!"





It's just one last congress-sponsored heist. And it looks like it was the Dems who got the ball rolling...
December 4, 2008 7:23 PM | Reply | Permalink
I disagree with your point on unions. Unions are becoming less and less a factor in the US. If employees wanted unions then more would be forming!! Unions do a lot of harm - like job banks for the UAW and teachers unions that won't support school vouchers. Unions have become so political I think it's disgusting. I think they're just as interested in junkets and boondoggles as they are about helping their members.
God bless the unions for getting good deals historically, but if GM goes bankrupt then that retiree's benefits are toast. Everybody is going to have to share the pain and right-size the US auto industry.
Don't tell me the US auto industry isn't broke. If this was just due to the current financial crisis, then Toyota, Honda, etc would also be asking for bailout funds
December 4, 2008 8:46 PM | Reply | Permalink
Toyota and Honda are doing no less poorly in the current situation. The only reason they aren't asking for a bailout is because they know it would be futile. And then there is the dubious aspect of their standing. They are operating their factories on U.S. soil and are incorporated in the U.S. However, they are still foreign owned and any supposition to entitlement of a bailout would not be well received. I've no doubt both could suffer a total collapse tomorrow and our government wouldn't even flinch.
December 5, 2008 5:05 AM | Reply | Permalink
Are you sure the forgein car companies are doing just as poorly? I would like facts to back that statement up. I haven't heard a word about them going under. I know their sales are down but they are not about to declare bankruptcy are they? One of the factors they are not on the brink of failure is that they have no where near the amount of dealers that the big three allowed to open. The big three have failed because they have leaders that don't have the sense to do things like NOT flying private jets to ask for MORE money from the US gov't. They didn't even have an outline of a plan for the money they would get. I am a self employeed painter and I know when I ask my clients for payment I better have a reason I want the money (either buy paint or work already done) What the hell is the problem with those HEADS? Looks like stupid to me. Tell me why we should bail them out. They should require the firing of the top 10 exec at each company on order to give them any more money.
December 5, 2008 7:10 AM | Reply | Permalink
As for Toyota and Honda, if they were doing as poorly then they WOULD be asking for a bailout. Not from us but from their own central banks and governments. But they're NOT doing as poorly.
Their profits have "plunged" 69% but that still means they're making profits!! Can't say the same thing for Detroit.
http://www.presstv.com/detail.aspx?id=74555§ionid=3510213
December 7, 2008 8:45 AM | Reply | Permalink
I have to agree with this assessment of the current union leadership and paradigm.
The unions have not done themselves any favors by opposing common sense reforms that would have limited their power. While they filled an historic role in increasing the value of labor in this country, they have long since become counterproductive and only represent around 10% of American workers.
Some sort of national health care system and a realistic minimum wage will kill the unions once and for all.
December 5, 2008 12:21 PM | Reply | Permalink
They are!
December 5, 2008 4:47 PM | Reply | Permalink
MCB, Do you think employers treat people who wish to organize with respect? Let's be real, here. Someone cannot simply say I would like to have a meeting to discuss organizing with my co-workers and the company asks what room would they want for the meeting. I see, right here, a very reactive response to my pro-union sentiments. There are some thoughts to support it, but there is more of a strong urge to destroy them. Unless these folks own their companies, I cannot understand why they would rather be along then have support from their co-workers with their work-related concerns.
December 5, 2008 4:56 PM | Reply | Permalink
It's uncertain what your post has to do with your provocative head, HUGE depression looms. Maybe one does, that's so. But you've written nothing to justify that head. It is not true that the American automobile industry has somehow been truly out front in the need to change the way it does business. I can't imagine anybody wants GM to go bankrupt or that the reluctance by Congress to bail them out with no questions asked has anything to do with "union busting." The situation is far more complicated than that. Greedy shits at the top were part of it, that's true; and yes, so were greedy unionists.
December 5, 2008 5:15 AM | Reply | Permalink
Perhaps the article does not address the issue of depression directly. What I was trying to suggest was that there is more then Detroit to think about here, and more then the employees. Any town with dealerships will have the collapse evident in their communities. A collapse will have a very broad reach.
December 5, 2008 4:52 PM | Reply | Permalink
GregorZap - unions do just as much harm as they do good. We didn't have unions where I used to work. And I never thought about forming one. To me, that would have created an "us versus them" mentality. That doesn't seem healthy to me. Eventually I want to work up the corporate ladder and go from being a peon to being in the ranks of senior management. That seems tougher if there's two classes of society at the company. There should only be one.
But that's just from my own work experience. When I look at the teachers union at my kids' school. Those teachers would never support a vouchers program even if it helped some of their students. That's another reason why I don't like unions.
December 7, 2008 8:38 AM | Reply | Permalink