Unless the Big 3 auto companies and the unions figure a way out of this mess, millions of job losses are exactly what could happen over time, even if government does come to the rescue.
The current debate about whether the auto industry should get a government bailout package has captivated the news media. Every day, politicians thrash out the pros and cons of a bailout package.
The argument put forward by the current and incoming administrations is, if we don’t do this, we stand to lose our manufacturing sector, and with it, a great part of the nation’s heritage that emanates from the auto industry.
While all of the above are real issues, how we deal with these issues will ultimately define us. I’ve always viewed the United States of America as the land of the free and the home of the brave.
If this is true, the first question one has to ask is, As free people, are we not responsible for our actions? The second question is, As brave people, are we not brave enough to chart a course through the rough parts of life and figure out how to survive?, as we have done for centuries.
The problem I have with the government’s corporate ‘soup line’ is these companies are not taking responsibility for their actions. Instead, they’re feeding the phobia. If we don’t get this bail out package then it will be on the nation’s collective conscience that millions of people may lose their jobs.
The real truth is that unless these companies, and the unions, figure a way out of this mess, millions of job losses are exactly what could happen over time, even if government does come to the rescue.
The crux of the matter is that both the unions and management of these Big 3 companies share the blame – equally. They have not done anything over the years to change the course of their own destiny and ultimately the destiny of their employees.
Unions continue to push for compensation packages out of sync with the realities of the auto business plus, they’re unwilling to work with management to figure out a solution that will make the car companies and the automobile industry more cost competitive.
Big 3 management have done nothing to focus their businesses on producing quality automobiles that consumers will choose over the competition. Instead, they have continued to operate in business-as-usual fashion, in the hope consumers will just continue to buy their products.
A good business is not run on hope; its run on sound business plans, the lack of which has resulted in the inability of the Big 3 to weather rough times.
One is compelled to ask, why is it that Honda, Toyota and late-comer, Hyundai have each been able to manufacture cars on American soil and dig deep into the American automobile companies’ market?
The answers are not that complicated.
Toyota, Honda and Hyundai have tooled their U.S. factories to run efficiently and they’ve trained their employees to produce a quality product. Furthermore, they have designed a product the consumer wants – a fuel-efficient automobile that can be relied upon.
Toyota and Honda have been eating the lunch of American automobile manufacturers for years. Yet, U.S. auto companies have done nothing to make desperately needed changes to repair management shortcomings.
Ace
Posted at 8:39 am on December 18, 2008
I have waited 10 years for them to come out with a quality product. No more waiting. I am buying a Honda early next year. No more American cars for me.
Indy Brains
Posted at 8:04 am on December 17, 2008
A very comprehensive and fair assessment of the many factors that need to be considered to put the American auto industry back on track. There is no reason why Ford and GM can’t produce cars that more American’s want to buy. America needs to increase its industrial base and not let what little remains of it erode even further. Letting the auto industry completely fail isn’t an option, as it would cost hundreds of thousands of jobs in the supply chain supporting the big 3. Furthermore, many other companies outside of the auto industry who have purchased the hundreds of millions in auto corporate bonds will suffer too if these bonds default.