Comments

Tom,
As someone who once worked for a Toyota supplier, I asked the question on my own blog today how we are suddenly surprised by all this. Anyone in the auto industry who was paying attention has known this was coming for quite some time now.

Unfortunately, I can't get past thinking about the blue collar workers, the suppliers, the deli next door to the supplier's plant who relies on lunch traffic, the wide-ranging impact letting the Big 3 simply fail would have on those who had nothing to do with it. So while I think there should be some major contingencies included (possibly including the leadership of these companies resigning, without a parachute)......I still have to support something being done.

All the best!
deb

Posted by Deb Owen at November 20, 2008 4:41 PM

I was encouraged to hear on the news tonight that congress wouldn't support a bailout plan unless the big 3 indicated how they were going to change their operations to actually make something that people might want to buy.

My sympathies are with the workers who have been so poorly led.

Posted by Cathy at November 20, 2008 5:15 PM

Why is saving 3 companies that make lame products good for America?

I'm in profound agreement here... my thinking being that having them (GM, Ford, Chrysler + their respective unions) go through bankruptcy proceedings would be the best possible thing.

That said, boy do I feel for the workers.

Also this situation brings to mind "On a Clear Day You Can See General Motors". We're really dealing with an 40+ year-old problem here. High time we fixed it since they couldn't.

Posted by Dave Hardwick at November 20, 2008 6:19 PM

Are we learning from the past?
The rust-belt could have been "bailed out" as big steel faded away - along with whole cities. But now we know that its bail-out would have been wasted money.
The UK government tried to bail-out the UK car industry (British-Leyland). That was wasted money.
How are the Big 3 different?

Posted by Mike L. at November 20, 2008 7:34 PM

To say anything more would be redundant.

Posted by David Porter at November 20, 2008 7:37 PM

It's modern-day, taxpayer-subsidised extortion. If you don't support us, YOUR economy goes down the shitter. Well I got news for the General: The shitter is filling up with it anyway, so why bail out your pathetic excuse for a company? The best thing to hit the US is a 100% "F" on its grade. That's how you get progress. Denial of complete incompetence is only prolonging and making King Kong even more mad. Enough old couples are suffering because of this absolute frat-boy stupidity. And I have few tears for the GM union extortionists, nor their silly company. It's a powder keg that's been waiting to happen since they haven't made anything useful since the 70's. The song is right, their brain is "Like A Rock".

Posted by Rich at November 20, 2008 7:53 PM

American automomile companies are where they are today because of no leadership in government.
If Reagan had agreed with Jimmy Carter that solving the energy problem was the moral equivalent of war and followed that up with money for research into battery technology and so forth, GM and Ford would be on the same level today as Microsoft and Apple.
Its a little known fact that the hybrid car was actually invented in the United States. Another reason why the automobile companes are where they are is because there is of no government healthcare. One of the big legacy expenses car companies have is healthcare. The cost of corporate jets are not what is bringing them down.
We can shoot down missles with government supported Star Wars technology that would have never been needed if Iran (and Russia) had no money because no one needed their f'ning oil.

Posted by zed at November 20, 2008 8:08 PM

Tom

Capitalist and Democrat are now two opposing philosophies in 2008. How you can make a post like this and yet support someone like Barney Frank is mind blowing. Actually, I think it damages your credibility.. In my eyes anyway. It is not meant to be a shot, just they way I see it.

Jeff

Posted by Jeff Berlin at November 20, 2008 8:11 PM

I had very similar thoughts. I was pretty open-minded about the bailout UNTIL I saw the private jets that these guys flew in with. They say they're required to fly the private jets for security reasons. Yet no one has been able to tell us yet what those security reasons are. And these guys are at the top of the totam pole - they have the power to say "no more private jets". There's a big difference between a $20,000.00 private jet trip and an $800 first-class trip. If they're to be bailed out - which I think would be best because of all of the people and other business's it affects - they MUST have a written plan in place and held accountable.
http://supervision-motivation.blogspot.com/

Posted by Andy Uskavitch at November 20, 2008 8:27 PM

There is a level of hypocrisy that goes with this call of sudden modesty by the senators. When have we ever expected executives of this level to fly anywhere commercial? How does the archbishop travel? How does the mega pastor travel? (Perhaps they should all travel commercial.) Grant it, the executives of the Big Three came to Washington seeking assistance from the government in the form of a loan, of which Chrysler, for example, paid back at a profit to the government. But should they have jet pooled for the sake of a show? This is how they travel. And what about the public paddling they received? But the ironic thing is how many of you in all of your travels seen any senators or congresspersons on you flight? I haven’t seen any.

To dwell on how these executives arrived in Washington takes the importance off of the real very present issues we are facing. Yes, I suppose some may say 30 million here and 30 million there, why didn’t they jet pool. Perhaps this is indicative of how business is run and thus partially the reason they are in such trouble. But I would rather put pen to paper and mandate change, perhaps even put new executives in, than not to give the bailout. I don’t think Michigan or the states beyond our state line can handle such loss, some estimated 3 million jobs. The jobs, by the way, extend beyond manufacturing, even to healthcare.

The way the senators addressed these executive, I thought was inappropriate. They were not on a fact finding mission; many seemed to want to degrade. There was no reason for such public chiding as if speaking to misbehaved children. The disrespect and contempt set the wrong tone for the necessary work; it also incited anger and a barrage of us against you drama in the public, the kind not needed to address the real problems before us. It appeared to me to be a bit of grandstanding by some of the senators, not to mention, as I have said before, I have never seen any senators or congresspersons in my many travels. How are they flying? The public paddling was not necessary. Deal with the very relevant issues, even ask very pertinent questions. But spare us the disrespect and drama, please.

Welcome back, TP. Nice picture of the farm. We can see that a thaw is setting; the lake has not as of yet begun to freeze.

Posted by Judith Ellis at November 20, 2008 9:57 PM

Bailout? Prolong the inevitable? Reward the incompetence and the unions overvaluing the employees? Get real. The lunch guy I can feel sorry for but the employees have been overpaid for decades. Maybe they should have saved something for a rainy day. And if, in this day and age, you raise your son or daughter to work the union line, you are a negligent parent.

Posted by Terry Ransbury at November 20, 2008 10:20 PM

Everybody will not go to college; everybody will not pursue professional careers. Does this mean that the notion of a middle class is extinct? There is no dishonor in labor. I would agree that factory workers were perhaps overpaid for extended periods of time. But as the company profits increased so did the salaries of the employees, the benefits too.

The problem seems to have been when things slowed down executives and employees, with the help of the unions, kept their fat salaries and bloated benefits. Most people in America and abroad do not make their living as professionals; most are laborers and tradespersons. Perhaps we are in a major shift globally, one that will reduce us into a two tier society, the uber rich and the working poor. The increase in salary for those on the line used to be aligned with the success of the company.

From what I can gather salaries for the Big Three will be more aligned with competitors by the year of 2010; I think this is the year. Or, is it 2009? Let's hope that the industry survives until then. It is very cavalier to say let the incompetent bums rot. But why not get rid of incompetence and restructure? There seems to have been some changes in the Big Three that would make them more competitive, including design and reduction. Is there not a national security component to all of this?

By the way, is GM building a massive plant in Russia? Will the bailout funds be used there?

Posted by Judith Ellis at November 20, 2008 11:22 PM

A couple of points:

Whether you think the bailout is a good or a bad idea, what difference does some top execs flying on a private jet make? Or if (as is the issue with Joe Public here in the UK) a few execs get very large salary + bonus deals? Obviously it's emotive and symbolic but what real difference does one Lear jet make to a multi billion $ £ € Y bailout? Either the bailout is a good idea in the current situation or it isn't: let's look past the emotive bits and think clearly about it.

If a bail-out goes ahead and national governments around the world (and thus by implication, we the people) are effectively major shareholders in these businesses, what role should government take in the running of those businesses? What strings should come with the cash, e.g. curbs on exec toys and pay? How do we reconcile the notion that government should be small and let business get on with its own business within a reasonable legislative environment vs. as a shareholder or investor, government has a duty to ensure its investment is properly managed?

Posted by Mark JF at November 21, 2008 3:23 AM

It is of course a very difficult issue. I worked at GM for several years and my father was a UAW official. Personally, I think Rick Wagoner had some bad luck ascending to his role when he did. He probably is the best CEO GM has had in its recent past. Look back to Roger Smith for the foundation that led to this crisis. Mayann Keller's book is a good read...also check out Mary Walton's book on the death of Detroit. Many saw this coming. On the labor side, it is heartbreaking to think about what this will do to many households in Michigan, but I am more appalled at Ron Gettelfinger saying no more concessions than I am the CEOS on their private jets. The jobs bank is a wasteful ridiculous idea. The taxpayers can not subsidize this boondoggle and the UAW must step forward and offer to jettison it. The thought of the taxpayer subsidizing the retiree's healthcare fund is just silly when most of us are struggling to pay our own. Read Ben Hamper's book Rivethead to get a sense of how it feels to work in a UAW shop. Gettelfinger is no Leonard Woodcock or Doug Fraser. He should go as well as the top management at the big three. There are concessions to be made. Chrysler shouldn't surprise us....Jack Welch was wise to pass up Nardelli. From Home Depot to Chrysler? Talk about mismanagement!!

I think there will be loan money made available, and I guess there probably should be. I would have been happy to see AIG forced into bankruptcy, but since we have opened pandora's box, why not help out manufacturing as well? And who is next? Heh, how about small consulting companies? :)

Posted by mike Neiss at November 21, 2008 6:09 AM

A loan of some sort is expected. I also hope that we will look at how paper has far exceeded products here and what should be done about it. Consider the words of the venerable Jack Bogle, founder and former CEO of The Vanguard Group:

"We have moved to a world where far too many of us seemingly no longer make anything; we're merely trading pieces of paper, swapping stocks and bonds back and forth with one another, any paying our financial croupiers a veritable fortune. In the process, we have inevitably added even more costs by creating ever more complex financial derivatives in which huge and unfathomable risks have been built into the financial system...Over the past two centuries, our nation has moved from being an agricultural economy, to a manufacturing economy, to a service economy, and now to a predominantly financial economy. But our financial economy, by definition, deducts from the value created by our productive businesses. Think about it: While the owners of business enjoy the dividend yields and earnings growth that our capitalistic system creates, those who play in the financial markets capture those investment gains only after the costs of financial intermediation are deducted. Thus, while investing in American business is a winner's game, beating the stock market before those costs is a zero - sum game. But after intermediation costs are deducted, beating the market — for all of us as a group — becomes a loser's game."

While the bailout of banks seemed necessary, we should really take a serious hard look at what we have become to the detriment of whom? The American people? Yes, there has been mismanagement and this should be dealt with. But to do away with an industry because of it seems equally irresponsible at this crucial juncture.

Posted by Judith Ellis at November 21, 2008 7:02 AM

Out of the American democratic system of capitalism sprung systems of all kind. We the People of the United States shall decide, as others around the globe within their system, what shall be done with regards to the support or lack thereof of any private institution based on the needs of its people. Discussions are FANTASTIC, decisions internal. For eons trade has long been a part of society; this is not the issue. The Constitutional vote of We the People of the United States is.

Posted by Judith Ellis at November 21, 2008 7:23 AM

"But the ironic thing is how many of you in all of your travels seen any senators or congresspersons on you flight? I haven’t seen any."

I do, routinely, both parties. Sat across the aisle from a Georgia Republican a few months ago on a DCA-ATL leg. The USAir Boston-Washington shuttle often has Congressmen aboard. (Flew with Tom Ridge on the USAir shuttle recently--does ex-governor count?) In days gone by, I often ran into California Senator Alan Cranston (D)and my Repreentative, Pete McCloskey ®, on my cross-country trips--in fact it was Pete's hangdog look on yet another weekend flight back to the his district that in part discouraged me from running for that seat when he retired. Not to mention poor (tall!) Bill Bradley tucked into a coach seat.

Posted by tom peters at November 21, 2008 8:25 AM

"Capitalist and Democrat are now two opposing philosophies in 2008."

What a silly comment.

"How you can make a post like this and yet support someone like Barney Frank is mind blowing."

Support Barney Frank? News to me. (I don't not support him, but the issue has not arisen until this moment.)

FYI, the $700B "anti-capitalist" bailout was a Bush-Goldman Sachs initiative.

(Beware gross oversimplifications. I worked in the White House in '73-'74; and my boss, RM Nixon, a Republicamn as I recall, had just laid on Price and Wage controls following the First Oil Crisis. The same Nixon who declared, "We're all Keynesians now.")

Posted by tom peters at November 21, 2008 8:32 AM

In 2003, I took a flight to Seattle from DC and saw Al Gore in coach as well. No entourage, no tv cameras, no hoopla, nothing. I thought, "what a come down." I was wrong to think that. He got off the plane with the rest of us in economy class, went to baggage claim like the rest of us and retrieved his own luggage, like the rest of us. A couple of people met him and off he went....like the rest of us. No one bothered him and he was My respect for him went up and hasn't stopped.
Oh and could the US car companies make stuff that we'll actually want to drive please? I rent a LOT of cars through the year. Still waiting on the Big Three to make something that I'll remember test driving that I'd like to buy.

Posted by nextgenradio at November 21, 2008 9:51 AM

Great, TP. I stand corrected. By the way, do you engage them at all? I'd like too. I like Bill Bradley. I suppose he was sitting in first class. The legroom is far better. Being 5" 10', even I struggle in second class on domestic flights.

Posted by Judith Ellis at November 21, 2008 9:58 AM

Judith will appreciate this - but I immediately recalled seeing President-elect Obama arrive for his meeting with President Bush on an American Airlines plane. It was probably chartered and with a large staff and press contingent, but I was struck at a what a deft PR touch. And in contrast here come the Big 3 CEOs, whose entire organizations rely on marketing, using their corporate jets to arrive. Perception is reality, especially for auto makers and quality! No one could foresee how that would look, or that someone would be watching? Executive perks (and the message they send) could probably be another interesting topic for Tom to cover. As Robert Townsend said, the company plane is just another way to keep the Brahmins from having to mingle with the untouchables.

I also have to agree with the comment on the Senate's behavior. I've noticed it for a long time now, the disrespect they impose upon many witnesses especially when the cameras are rolling. It's not the level of civility and professionalism I expect/demand from our government, regardless of the heat of the issue. Vigorous debate should be conducted with courtesy.

Posted by Bruce at November 21, 2008 10:07 AM

Al Gore's way cool!

Posted by Judith Ellis at November 21, 2008 10:16 AM

Bruce - Thanks! I do appreciacte the reminder of the image indeed. I distinctly remember seeing this AA plane and the President-elect debarking and thinking, "How cool is that!"

Posted by Judith Ellis at November 21, 2008 10:23 AM

Hi Mark – hope you are well.

‘what difference does some top execs flying on a private jet make?’

‘let's look past the emotive bits and think clearly about it.’

Life and work is ONLY ABOUT ‘emotive’ stuff in the world that I inhabit. In fact I would go as far as to say economic theory is largely about psychology. You are technically correct in the grand scheme of things - the cost of air fares for executives is not a significant entry on the balance sheet. But irresponsible gestures such as these from top managers are symbolic and tell me an awful lot about sincerity, understanding, integrity and empathy. Some things don’t have monetary value. Ask people working on the front line what they think about it and I suspect you will get an answer somewhat different to yours. It's rather like those annual reports we read about ‘valuing our employees’ ‘our employees are our greatest asset’ … and at the same time those companies have reserved car parking spaces for only their 'senior' people. You may not think it matters Mark – I respectfully disagree – I think it matters more than these executives realise. Being as kind as I can be, I would describe that sort of behaviour as ‘empathy blindness.’

Posted by Trevor Gay at November 21, 2008 11:02 AM

Bruce, Tom was dealing with perks and the signals they send a long time ago. I seem to remember a great story in In Praise Of or In Search Of about some newly appointed manager whose first act on arriving was to erase his specially designated parking space. The bottom line is created by more than just cold figures; behaviour matters, gestures matter. Time to dig out those well-thumbed copies again.

Posted by Rob at November 21, 2008 11:29 AM

In moving forward, perhaps there should be a moratorium on the purchase of private jets. Perhaps all private jets should be sold. (GM will sell two. My, my did they have more than one?) Will this help?

Posted by Judith Ellis at November 21, 2008 11:52 AM

Tom

Yup.. lots of Republicans don't walk the talk. No doubt. However one of the mosty public faces of your party was rejoicing in the death of capitalism just the other day. To blindly put an 'R' or 'D' next to your name is just crazy.

PS.. I don't declare allegiance to any party.

Posted by JB at November 21, 2008 12:32 PM

Accountability, Integrity, Respect, Leadership, Transparency, Honest,Forward looking,Competent, Inspiring - none of these come to mind listening to Rick, Al, or Bob. If I, as a front line employee, made the kind of presentation in front of them as they made in front of Congress I would be fired on the spot. So should they and Gettelfinger.

Posted by tom wilson at November 21, 2008 12:35 PM

Tom, since you want to bring up republicans

From 04/05

Treasury Secretary John Snow urged Congress on Thursday to impose tighter controls on the huge mortgage companies Fannie Mae (FNM) and Freddie Mac (FRE), saying their accounting scandals have heightened worries that they pose a potential risk to U.S. financial markets.

From 10/06

low-cost housing fund under a plan by Democrats, who polls show may win control of the U.S. House of Representatives in the Nov. 7 elections.

Barney Frank of Massachusetts, the senior Democrat on the House Financial Services Committee, said he aims to increase the money Fannie Mae and Freddie Mac must provide for housing low-income Americans beyond the 3.5 percent of after-tax profit required in a bill passed in October 2005. Frank is likely to replace Republican Michael Oxley of Ohio as chairman of the committee, which has congressional oversight of the two government-chartered companies.

Posted by JB at November 21, 2008 12:43 PM

Now add pop culture into this... SNL did a skit that made reference to the fact that Snow had warned against this back in 05.. But - they cut it out of the show! There is no denying that probably 99% of people that write, produce and act on that show are Democrats (can't be 100% or else that reference would not have made it into the show at all). This is the party you align yourself with it.

Posted by JB at November 21, 2008 12:47 PM

Now add pop culture into this... SNL did a skit that made reference to the fact that Snow had warned against this back in 05.. But - they cut it out of the show! There is no denying that probably 99% of people that write, produce and act on that show are Democrats (can't be 100% or else that reference would not have made it into the show at all). This is the party you align yourself with it.

Posted by JB at November 21, 2008 12:47 PM

So I am trying to reconcile how you write books that are pro-individual (Brand You, Re-imagine) and pro-business.. things that are traditional libertarian/conservative values (if they must be labeled as such, to me it just seems like common sense), yet you align yourself with a party that seems to be getting farther and farther away from that everyday. To me every person should be the best they can be, accomplish and receive riches to their hearts content..on the way there we help those who can't help themselves, we don't exploit others on the way there and punish those that do and we defend this way of life. And we don't take and begrudge those that do this.

Posted by JB at November 21, 2008 12:55 PM

Al Gore rocks

http://blog.algore.com/2008/11/looking_back_to_look_forward.html

Look at those 4 flat panels...and all those books!

Posted by JB at November 21, 2008 1:03 PM

On my flights from Reagan to Detroit Metro often see Sen Levin, Congressman Upton, former Gov Blanchard, and others...all flying coach! good on them

Posted by Mike Neiss at November 21, 2008 1:16 PM

Just to be fair... Republicans are moving farther and farther away from those values as well. But there are lot more left in that party then in the other. At least it seems that way.

Posted by JB at November 21, 2008 1:22 PM

Man, Mike, why haven't I seen any of these guys on my trips from Reagan to Detroit Metro? Senator Levin is a stalwart and Gov Blanchard is smart and kind.

Posted by Judith Ellis at November 21, 2008 1:23 PM

Blue Collar workers are the new Black. No one gives a crap about them. Their bosses fly around in private jets, so we say shut down the auto plants. That will teach those CEO's a thing or two. They'll all have to go home and live off their golden parachutes. If these CEO's flew coach, would they make better cars?

Posted by zed at November 21, 2008 1:36 PM

To a large degree with some of these issues it is a matter of how we judge value. In a system where education is rewarded and promotions given based thereby (MBAs, for example, are typically promoted before others), it might be said that factory workers didn't do too badly.

Many have not finished high school and have made, (thanks to the unions?) with overtime, six figures. Perhaps there should be a sliding scale (upward of downward) for executives and employees alike based on the viability of the company. Perhaps we all need to be reminded of the lessons of sacrifice.

Black is Black for the masses, though we are all evolving. This I am most pleased about.

Posted by Judith Ellis at November 21, 2008 2:27 PM

One of the reason I follow this blog is that you learn something new all the time or have your ideas challenged.

"John Maynard Keynes, 1st Baron Keynes CB (pronounced /?ke?nz/ "cains") (June 5, 1883 – April 21, 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. He advocated interventionist government policy, by which the government would use fiscal and monetary measures to mitigate the adverse effects of economic recessions, depressions and booms. He is one of the fathers of modern theoretical macroeconomics and often considered to be the most influential economist of the 20th century."

--Wikipedia

I'm sure you guys all knew who he was. But for me he was pretty cool to discover.

Posted by Judith Ellis at November 21, 2008 3:16 PM

Judith

Read his writings, along with Adam Smith and Karl Marx... Look at where these theories have been tried in the real world. See what worked and why it didn't. Don't believe who the press says is a Marxist and who is Keynesian.

JB

Posted by JB at November 21, 2008 3:24 PM

Thanks for the assignment, JB. Perhaps I will do just as you have suggested, though I have read my share of Smith and Marx. These are serious thinkers and you probably can't read them enough. I am also not terribly big on labels i.e., liberal, conservative, socialist, capitalist, etc. I do, however, understand the desire for shortcuts and identification. By the way, will I be given a grade? :-)

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Your comments, I must say, since you were so kind to seek to assist me, were a bit sporadic, somewhat hard to follow. Perhaps it is my quickened mind, though sometimes sluggish. (Maybe the latter is the case here, really.) I might have gotten lost in all of the political references and labels. But there were a few things that held my attention. I appreciate this thought:

"To me every person should be the best they can be, accomplish and receive riches to their hearts content..on the way there we help those who can't help themselves, we don't exploit others on the way there and punish those that do and we defend this way of life. And we don't take and begrudge those that do this."

Thank you. Regarding punishment, does this simply include those who have a difference of opinion, those who break the law, or those whose ethics are such that it is tantamount to criminal behavior? Who then becomes the judge?

Posted by Judith Ellis at November 21, 2008 4:05 PM

From a Canadian perspective, there are well over 500,000 workers directly affected by The Big 3's possible crash & burn, and certainly the whole economy will suffer more. Idea - as we all face credit hassles lately, make the CEO's & Boards of Directors sign for any loan/bailouts personally to insure that any money goes to the right areas that must be fixed asap, like smarter quality cars that people want to buy now,and not to private jets, overbloated benefit plans and secondary crap!!!! Eventually GM, Ford and Chrysler have to hire better management to design and sell better products that people want - not 8 cyl Mustangs and Cameros - insanity!!!

Posted by Lyle Goodis at November 21, 2008 4:27 PM

It may indeed be the right economic or moral thing to let the automakers slip beneath the waves. You can argue various forms of conditions and reform tied to any aid or the use the "creative destruction" argument. I honestly don't know where I'd finish up on that one.

But I'm sure that if the Big 3 go out of business now we will indeed reap the whirlwind. Upstream and downstream in suppliers' plants and auto-haulers and dealerships at least two million jobs will disappear overnight. Then we can start counting the loss of jobs for the people who run coffee shops and dry cleaners in the towns where those Tier 1, 2, and 3 suppliers used to have plants. They will overload the unemployment compensation funds in some states. Municipal and state bonds in affected areas will turn to junk.

That's a scenario I think we need to avoid. I don't like the fact that two out of the three CEOs, for example, declined to take a pay cut as part of this and it sticks in my craw that they will walk away without ever having to worry about their mortgage no matter what happens to the industry they helped wreck. But I think we need to find a way to avoid a cure that might be worse than the disease.

Posted by Wally Bock at November 21, 2008 5:28 PM

I could not care less whether these guys fly private jets, use rocket packs or time travel. The facts are that, especially in GM's case, the lack of leadership and vision have led them to this place. Wagoner saying it is the global financial meltdown and not mismanagement conveniently dismisses the fact that GM lost $38 billion in 2007, $2B in 2006 and $8B in 2005. These guys have no plan and private jets actually allow you to do work enroute which gave them all time to get at least a strawman together. Shameful. Idiots. If they would have come with a plan, they would have gotten their ill-deserved $25 Billion.

Posted by David Porter at November 21, 2008 6:29 PM

JB..the same John Snow who is the key executive of Cerberus?? How's that takeover going....geesh

Posted by mike Neiss at November 21, 2008 6:30 PM

Judith

Simply means enforce the laws.

Mike Neiss

So your point is that his concern in 2005 was invalid?

Posted by JB at November 21, 2008 8:48 PM

David - Your point about leadership and the lack of a plan before the Senate is well received. They were not the best salespersons. I smiled at the point you made regarding the time afforded these executives on their private jets to come up with a plan or to perhaps practice their presentations. This would have helped.

JB - Thanks.

Posted by Judith Ellis at November 21, 2008 9:23 PM

There is a groundswell of hardworking Americans that are ready to pull the plug on big three. It's getting tedious. And a drag.

Have we forgotten, we live in a free enterprise system. If your product doesn't sell (read: if you can't be employed with your current skils) then changed must happen.

If they're allowed to do Ch11, so be it. The market can handle 2-3 million autoworkers in the market. It will be painful but we'll live.

And guess what. The workers will need retraining? Will they invest in themselves? Probably not. Because many of them have a victim-entitlement mentality.

And giving them more bailout does nothing to change that.

Posted by Bill C at November 22, 2008 7:44 PM

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I wouldn't give these boneheads (GM) a dime as long as Rick Wagoner is in charge. I was a GM dealer for 10 years, and I can tell you from a dealers point of view, GM is the most messed up car company in the world. They treat their dealers like dirt just because they are GM. What do I have GM to compare to? Oh yea, I was a Toyota dealer for 20 years. Toyota wouldn't have Wagoner as a parts rep. in North Dakota.

Posted by Dave Thomas at November 25, 2008 7:11 PM

I enjoyed the post and the insights that you provide in the post. I agree with your opinion, and frustration, over the fact that the Big Three have failed to make any type of substantial changes over the past couple of decades and are in this position because of poor decision-making and management. I heard Mitt Romney speaking about this subject the other day and he suggested that the Big Three file for bankruptcy, and through this process, restructure the whole company, work on the health care and retirement plans that are burying GM, cut absurd luxuries (private jet rides, CEO salaries and bonuses), cut costs, and ensure that performance improvements are met.

We shouldn't just hand them over a blank check. They will squander that away foolishly because they clearly don't get it. Until there is an actual crisis – people don't get it. Just look at the housing crisis or, even, the September 11th attacks. Airport security(in regards to terrorist activity and the hijacking of planes) was not a serious issue, even though many airports across the country including the one in my state where two of the planes took off from – Logan Airport, were told that the security measures in places were not good enough and it would be easy to breech security and hijack a plane in this airport (I saw the written statement on the news).

It seems we need to be put into dire circumstances before we take any action.

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Posted by Laurie Stafinski at November 26, 2008 8:54 AM

Tom,

I answered "no" to all of the questions you phrased in this blog. I'm surprised at how shocked most people are that we're in this mess. I'm surprised at how shocked you are that we're in this mess. Corporate greed and corruption coupled with bailouts and political pork is that much of a surprise? You have worked in executive cultures and corporate America, haven't you?

Once again, we're bailing out companies and not changing the rules or holding people accountable (this wouldn't have anything to do with lobbyist or exorbitant amounts of monies given to political parties?). If you're going to sit back and whine about this, you have wasted your last 40 years. Quit Dropping Almonds (Bach Anon book) and start the change with yourself.

Boo f#$ing hoo is my reply to this blog. Quit being such a baby and be a better leader.

Posted by Scott at November 26, 2008 9:19 AM

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Tom,

Perhaps the era of extravagant corporate perks is finally coming to an end.

I think the term "empathy blindness" one of your bloggers used might become part of our general lexicon. But it shouldn't come from the PR staff. It should come from the reservoir of conscience and common sense that everyone should be equipped with.

Last Sunday Chris Wallace on Fox News showcased Air Force One. I thought to myself Barack Obama needs to get rid of this dinosaur. It sends all the wrong signals. If we need to go "green," how does anyone justify this anachronistic monstrosity? I know security is part of the justification, but can't we do better than a Boeing 747 when we face a climate crisis?

By itself downsizing these perks doesn't solve the economic crisis. But it sure sends the right message and gets you off on the right foot.

Posted by Timothy Mund at November 26, 2008 12:41 PM