Monday, November 17, 2008

If it's going to happen anyway, lets do it now.

Well it looks like the auto makers are going to get their 25 Billion. It will happen, whether it’s in the lame duck session or when Obama gets in, but it will happen. I would like to propose a compromise; To put everything on an even keel I believe the unions should make concessions so that the companies are capable of survival. I also think the auto execs should follow the example of Goldman Sacs execs and guaranty absolutely no bonuses until the company becomes profitable and pays back this debt. I know it’s hard to get unions and their workers to give up gains but these are ill gotten gains and have put the companies in jeopardy from the gitgo. If you take the example of Toyota and Nissan here in the states you can find a happy medium, if the union doesn’t want to go along, then offer no money to bail them out. Maybe they have become so powerful they no longer see the plight of the workers they represent. I know the big three companies have some great Hybrids on the production floor now, and more in the works, but changes in design philosophy need to be made to steer them once again into the black. I’m not saying no to more SUVs’ and pickups, that should never happen, but build them with the mileage capabilities that exceed the rules. Nothing being built for common use should get less than 25 to 30MPG. You can understand their reluctance to building cars to compete in the mileage category as they tried that before and lost big timein the 80’s, but with the technology that is available to the companies today, these would be easy milestones to achieve and competitive hybrids are certainly within their capabilities. The government should make this decision quickly as it either is going to be a yes or no and millions of jobs hang in the balance. If they are going to do it regardless after January, let’s get it done now with these modifications installed, there will be no real modifications if we wait. And that’s my opinion, Don

0 comments: