Comments on: Auto Industry Bailout: Fixed!

By: Mark

Mark — Mon, 08 Dec 2008 15:44:32 +0000

The US Carmakers have been in crisis for over 12 years. Cumbersome processes and technologie from the stoneage. This is not a new crisis because of the general recession. I would not bail them out, or only with strict trings attached.
if I buy an american brand suv, it is made in nuevo laredo, mexico. if i by a japanese brand suv, it is made in the us. that explains the problem.

By: HRM Today - Blog Archive » HR Advice & Cheezhead

HRM Today - Blog Archive » HR Advice & Cheezhead — Fri, 05 Dec 2008 19:30:34 +0000

[...] I changed the world with my awesome advice on how to save the auto industry. Then I counseled you to stop writing thank-you notes after your job interviews. Now I

By: Laurie

Laurie — Fri, 05 Dec 2008 02:43:36 +0000

@cols I can’t disagree with you in principle. As the old saying goes, “Give a man a fish, and he eats a decent meal. Teach a man to fish, and he turns around General Motors.” I’m not pro-handout, but I hate seeing the banking industry get a welfare check while the auto industry (and its suppliers, employees, etc.) gets the shaft.

By: col

col — Fri, 05 Dec 2008 01:33:31 +0000

i love all things laurs — your house, your michigan roots, and your passion. i am in nyc and work for a major media company whose biggest advertisers (and main source of revenue) are (or were) located in detroit.

indeed, millions of jobs and livelihoods are tied up in this thing, yet i am not so sure i want it to go through in a big way.

risk taking is fundamental to innovation and innovation is fundamental to successful enterprises. generous government subsidies would inhibit and even prevent the process of innovation in the very way that the UAW (and the complacent execs and politicians who laid down with them) have prevented the big 3 from innovating over the past two decades.

By: HR Advice & Cheezhead « Punk Rock Human Resources

HR Advice & Cheezhead « Punk Rock Human Resources — Thu, 04 Dec 2008 20:08:34 +0000

[...] resources , punk rock Tags: cheezhead First I changed the world with my awesome advice on how to save the auto industry. Then I counseled you to stop writing thank-you notes after your job interviews. Now I’m [...]

By: Laurie

Laurie — Wed, 26 Nov 2008 01:33:11 +0000

@Patrick Your comment originally went to spam. Thanks for the comment. You are so awesome to link HR to Obama!

By: Laurie

Laurie — Thu, 20 Nov 2008 05:01:41 +0000

@MD Whoa, what a great & thoughtful response. I need to think about your points a little more and I want to read Romney’s piece. Honestly, there are no easy solutions and it will be ugly no matter what happens. I’m not worried about my house as much as I’m worried about people in Michigan who depend on pensions, health care, employment, etc. There is plenty of blame to go around. More on this SOON.

By: MD

MD — Wed, 19 Nov 2008 15:06:56 +0000

Interesting plan on auto bailout…
- If you look at the annual reports of the Big 3 you’ll find that they burn through billions of dollars each year “innovating”. It’s called R&D. Telling them to innovate (which is what most good companies do as a matter of survival and don’t need to be told or SUBSIDIZED – Apple anyone?) won’t make it so. Besides, they’d rather spend billions lobbying Washington not to penalize them for cranking out inefficient, badly made SUVs.
- On rebates and incentives, why should the government pay for people to buy a car from one company over another? Oh wait, the government doesn’t have money unless it taxes its citizens. So you believe the taxpayers should pay other taxpayers to buy a car from 3 of the most poorly run companies in the history of our country.
- On your car idea by 2012, not possible because unions won’t allow the companies to purchase labor on the free market. Honda and Toyota plants in the US pay 1/2 the labor rate that GM et al pay. So the only way that they can make your car at your price and have a profit is to tear up the union contracts (not get wage concessions). It all has to go. You can’t pay laid off worker’s 90% of their salary and be competitive. Or pay $100k for line workers.
- I don’t know where to start on “taking the burden of healthcare off automaker’s” Seriously?!? All other industries have profitable companies and they ALL have the burden of healthcare. Why does one industry get help? For decades, auto workers did not get any increase to their healthcare costs as millions of Americans in every other industry were squeezed by their employers with increasing premiums, copays, and Rx costs. These companies had to shift the burden to the employees to remain viable. Detroit refused…so now taxpayers must pay the bill?!?! We are paying our own healthcare costs..why must we (and our children since we’re talking billions) pay Detroit’s too?
- On CEO pay. No one wants this job unless there are incentives. It’s too crappy. Supply and demand dictate the salary. We just need to hold boards to not compensating CEO’s that don’t bring shareholder value.

Here’s a link on what the bailout should look like if we actually have to do down this path…

http://online.wsj.com/article/SB122628230122212449.html

For the record, I feel bad about your house, but that’s a whole other issue and bailing out Detroit (which won’t work – they’ll burn through the capital and the local economy won’t improve) doesn’t fix the housing market.

By: Laurie

Laurie — Wed, 19 Nov 2008 03:47:46 +0000

@Joanne Thanks, what a nice comment!

By: Joanne

Joanne — Tue, 18 Nov 2008 14:39:40 +0000

Thanks for this!! I hope you don’t mind that I borrowed your thoughts for a letter to my local Congressional reps!