The CEO's of Ford, GM, and Chrysler, are going to Congress with their hats in their hands begging for a bailout. They each appeared before the Senate Committee on Tuesday asking for 25 billion dollars in emergency loans to avert layoffs and plant closings. GM CEO Rick Wagoner warned that the failure of the U.S. auto industry could lead to a loss of three million jobs within the first year and it would ripple throughout communities around the country. And in my opinion he is exactly right. It's a lot more than just Detroit, if the big three fall, the U.S. economy is in for a catastrophic collapse. Think about, we are talking about millions of jobs. This isn't just going to affect people in the automotive, it will effect just about everyone and everything you can think of. If these people lose their jobs, obviously they won't be paying their house or car payments so that will hurt the banking industry, they won't be shopping so that will hurt the retail industry, they won't be traveling or going out to eat so that will hurt the hospitality industry, and it goes on and on. It's going to kill me to say this (being from Michigan and driving a Ford Mustang that I absolutely love so much I wouldn't drive anything else), but Ford, GM, and Chrysler? You are getting exactly what you deserve. Now before you jump all over me, let me tell you why I think this.
1.) America is no longer interested in your 12 mile per gallon SUV's. It sure took them long enough, but people are finally starting to get it. None of us have forgot this summer when gas was almost $5 a gallon. And as much as we hate to think about it, those days will come again.
2.) What about the hybrids? What about battery operated cars? What about 40 mile a gallon cars? For years and years automakers fought against improving fuel efficiency cars. And now you say they are in the pipeline for 2020? Sorry, but America needed them yesterday.
3.) How about the biggest one, good old pure greed. Does anyone realize that the GM CEO (Rick Wagoner) earns almost 9 million a year. Some of the union workers earn $30-$40 a hour PLUS benefits. Have you ever seen the pension and health benefits retirees get? It would make you sick. How many of you know someone that works at GM working 7 days a week, 12 hours a day making money hand over fist in overtime just because they can. They all have cabins, motor homes, big expensive trucks, boats, etc. For God sakes the GM plant near my hometown is CLOSED for the opening day of deer season! And the UAW has demanded more and more every year or they strike. So as much as we want to blame all of this on the CEO's, don't think the UAW doesn't have blood on their hands too.
4.) Speaking of blood on their hands, let's not act like Bill Clinton is clean. Please.
5.) And what makes me the most angry about all of this, is that the CEO's of the big three were all warned years and years ago that they could not keep going on like this. They were warned that they were going to run out of money if they didn't make changes. And NOTHING happened. They acted like they were untouchable and gave all themselves raises. So like I said before, they are getting exactly what they deserved.
The sad thing about all this, the people it's going to hurt is not the people who made the decisions that led to the big three demise. It's going to be your middle class family that will have declare bankruptcy because they can't afford their house. It's not going to be Rick Wagoner who makes 9 million year. I personally think, him along with Chrysler and Ford CEO's should be held criminally responsible, but that's another rant for another day. I really think that if GM, Chrysler and Ford get the bailout they are asking for, you can kiss the automotive industry goodbye. They need to restructure and get rid of management and have a concrete plan in place to turn things around which none of them seem to have. They need a turnaround-not a check. So if Congress does grant this bailout, I hope it comes with a big red stop sign and a lot of strings attached.