Why I'm shedding few tears for Detroit
A few people over on Twitter have wondered why I do not seem overly sympathetic to the plight of two-thirds of Detroit's car makers. Let me say at the outset, that I am extremely concerned for the millions of workers who theoretically could be laid off before this whole thing shakes out. I am also aware of the serious impact to the world's economic well-being. Already traumatized, the collapse of GM & Chrysler could be the most devastating body blow of a series of body blows.
Let me also say that I have relationships with people at GM and Ford they are good people. I believe them to be truthful overall. Although, I have to scratch my head because I visited GM & Ford earlier this year and met with more than 20 representatives of these companies. On after another sang me a song of a magnificent and imminent comeback. They showed me new designs and advanced applications of collaborative computing and virtual reality technologies that looked like they were reducing time to market of better, safer, more fuel efficient cars. In fact, one of them in jovial fashion, leaned over to me as we walked down a hallway and half-jokingly advised me, "if you have any spare cash laying around, this would be a great time to buy some of our stock."
Well it happened that this year I have not had any spare cash laying around. As a matter of fact, most people I know do not have any spare cash laying around and earlier this year, when Hank Paulson took a hefty chunk of our tax dollars and started to spread it around financial institutions in a haphazard and mysterious fashion, it inspired some of the most frugal thinking I and my fellow countrymen have expressed in about 75 or 80 years.
The bravado I heard in Detroit of February was gone. Now, Detroit's management and union leadership was in a panic. Suddenly, we were told, the end was near. If they could not get $15, billion--aw Hell, make that $35 billion, we are going to tank and millions of people in the world will be out of work.
All this tended to piss me and a lot of other people off, but that did not get me to oppose the package. When the head of the UAW termed a temporary pay reduction to $49 an hour "unacceptable," I wondered just who that was unacceptable and if he really did prefer the $0 an hour that the other side of his mouth said was coming. But that also did not stop me from opposing the bailout.
What got me to oppose it was that these guys, sitting before our Congress were the very guys who got us into this mess and they were proposing to be the guys we financed to get us out of it. They had no plan, displayed no vision and demonstrated the same lack of leadership that are at the nexus of the problem we are in.
Let's talk about that issue as well. My last American car was a 1974 Ford Mustang, a beautiful little car whose gear shift came off in my hand at about 42000 miles. My dealer's response was that I should buy a new car. He was right. I have been driving Japanese cars ever since. Most older Americans I know who drive foreign cars have some story of what an American manufacturer or dealer did at some point in the past 40 years to put them into other cars. We raised our children to believe that value and safety could be found more easily in cars made elsewhere. There is a mountain of data to back that up.
Not only did Detroit make the mess they are in, but they have had more than four decades to turn it around. They have an awful record in safety, value, environmental responsibility, credibility and more.
Still, I would have supported the bail out. What stopped me is that I saw and heard no evidence that the people glaring at Congress had any sense of their enormous contribution to the mess we are in and I had no sense that they would step aside and let newer, fresher thinkers replace them to drive our failing auto industry in a new direction.



