This is fun! I have saved almost all my writings and have been revisiting them lately to explain what is happening now. I want you to read what Tim G. and I wrote back in 2006 about the auto industry. This is no surprise. We have had years to figure out a solution to fix this storm that we are facing. NOTHING was done and now they scream bail us out! Consumer, union, government and management are all to blame. You can't leave any one of them out of this predicament.
But, before you read that letter from 2006 let me give you some inside baseball of what is currently happening with this bailout. I would like to divulge my source but I did not get an OK so will not include a name.
This person feels that the company that stands the best chance of surviving is Chrysler.
Daimler/Chrysler was sold to a holding company for only 7 billion dollars. If Chrysler Holding can not weather this storm a couple of things can happen. One is they go bankrupt and sell off all their assets, land etc... and walk away with a huge profit. If I remember the figure correctly I think it was $30 billion. Keep in mind this is a holding company that buys and sells and has nothing to do with automotive, so its very possible thats why they bought Chrysler in the first place in 2007. The other scenario is go bankrupt, start over but as a non-union auto maker.
BUT and here is the but, this person feels that all this haggling and making the auto makers sweat is all for show. The Democratic elected officials are indebted to the Union for the millions of dollars raised to get them in office. In other words its pay back time and congress won't let the unions fail or they also lose their backing.
Follow all of that? Even though all auto makers are facing a major slow down, the foreign car makers are not facing bankruptcy. So maybe the unions are the biggest cause of all of this.
Tim G.'s story
Thursday, March 23, 2006 5:07 AM
I was asked by Tim G. who lives in Michigan and works at Ford to pass this along. He is not only concerned about his job but also the state of the American Auto Industry which may fade into oblivion if America doesn't wake up NOW!
Please take the time to read about Tim's concern and PLEASE feel free to pass this on to everyone you know!
Some of the problems that gets me going on a bender:
Too many people are buying imports. Read the media. EVERY DAY the American auto companies (particularly Ford) are constantly being beat up.
Then listen to NPR. Read Consumer Reports or (Foreign) Car and Driver.
The HONDA RIDGELINE is the truck of the year.
That's a UNI-BODY truck, AND can only tow 4500 lbs. I can tow more than twice that with my 10 year old truck.
Look at quality.
Did you know that Toyota recalled two MILLION vehicles last year? NOBODY talks about that. HOWEVER, you'll see that the Ford Crown Victoria is UNSAFE when hit from behind WHILE SITTING STILL, and the car hitting the Crown Vic is doing 60-70 MPH. Show me any car that will stand up to that.
The real facts for the Crown Victoria are amazing!
In reality it is one of the SAFEST vehicles in the country, it EXCEEDS the maximum government crash standard for rear end collision. This Ford makes an excellent family car! It has body-on-frame construction, a V8 that gives great performance AND will still give the driver 20-25 mpg!! Do you ever hear THAT?
As for the frivolous lawsuits by certain police municipalities that sued citing their vehicles were unsafe, Ford REFUSED more fleet sales to them when they requested. Ford said basically "if you are going to sue us for something that we didn't do, than we will not sell you any more vehicles". Good for Ford.
Everybody talks about the Japanese cars being MADE in AMERICA.
No, they are ASSEMBLED in AMERICA of JAPANESE parts, designed in JAPAN and all of the profits of the Japanese cars go to JAPAN. NOT AMERICA.
HONDA is buying soybean farmland around their auto plants in Ohio. Then they LEASE it back to the farmers. The soybeans harvested are finally shipped back to Japan in crates that held all of the Japanese parts that go into making those AMERICAN MADE HONDA'S.
As for the soybeans, here's where that information came from:
Please look at it, there is other information on there that will make you shudder!
Another clever trick of the Japanese is that they handle major issues with their vehicles rather silently. That is, when a customer comes in for an oil change, the dealer fixes the recall/safety/whatever problem as a FAVOR to the customer. Therefore, the customer thinks that Toyota is doing them a favor, when in fact they're covering up a screw up. Did you understand that? Read it again what I just wrote.
Don't people see what's happening here?
PLEASE post ALL of what I tell you on your HEY GANG messages. Those seem to get around, and we need to get the word out that the Americans still make great vehicles.
I do need to add that the domestic car manufacturers problems are not all due to foreign competition but also to an all to powerful union.
The Unions have such a tight grip on the automakers its difficult for them to stay competitive. They are squeezing the auto companies SO HARD (can you say "don't do my work during the workweek so I can get the overtime") that profits and the costs of benefits are skyrocketing. Therefore the auto companies make all of the cuts to the salaried workers. Union workers are screaming that their co-pays went from 5 to 10 dollars. However, salaried benefit costs have gone up about 80 percent in the last six years.
Wake up America!!
YES Tim I have seen what has happened. I have been screaming about this for years. Not only is this bad for employment but our national security as well which people don't think about.
There is many reasons for the decline of the American Auto Industry. A stubborn and all to powerful Union that would not make concessions and protected workers who should of been canned, labor laws and quotas, EPA and government regulations, mismanagement but the biggest reason in my book is advertisement - people bought the lie that foreign cars are so great.
And I will never understand how Daimler Benz was allowed to buy Chrysler after the US government bailed them out from ruin in the late 70's.
Before we completely lose ALL domestic auto's and another piece of our national identity America better wake up and support Ford and GM. IF we lose them, the slide from being a world leader is going to happen and I am afraid quite quickly. Trust me!!
It so sad what has happened to the once mighty Eagle!
Carey K. Masci
Have a rebuttal to what Tim or I wrote or would like to add something, please email me with it.