Industrial Heartland Comments on Editorial re Bailing Out GM & Ford

Friday, October 31, 2008
readers' comments
More Money for DetroitBack to Article »
Pumping billions more taxpayer dollars into Detroit’s automakers makes sense even though the companies may go bust.
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36.
EDITORS' SELECTIONS (what's this?)
October 31, 2008 7:10 am
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And then what? The airlines? The big box stores? Sears? United Artists? Where does it stop?Detroit has known for four decades that we needed gas-efficient vehicles, and it snubbed its nose at that and produced SUVs, then marketed them so aggressively that folks were practically forced at gun point to buy them when looking for a new car. It moaned and whined that Japan was taking more and more market share, even as it did everything it could to ignore the obvious truth standing in front of it.And now we're supposed to bail them out as well, with money we dont have? I'm sorry, but this is getting absurd. Who's paying for all of this, guys? And how long is it supposed to go on before we force these clowns to accept responsibility for their screwups?They made this mess. Let them figure out how to solve it. If it means closing down, well, nothing lasts forever. Good riddance; let the people who know how to build these things right take charge until we can get it back together.
— Sean Martin, Mebane, NC
Recommended by 22 Readers
40.
EDITORS' SELECTIONS (what's this?)
October 31, 2008 7:11 am
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Forcing the senior management of Ford and GM to step down is a mistake. It was the government decision to pretend SUV were truck and should count the same in mileage standards. People wanted SUV's and the car companies made what people wanted and were in fact willing to pay top dollar for. That's not the car companies fault. It's also not the car companies fault that the government allowed the commodities markets to be turned into casino's with the price of oil bid up to ridiculous levels. Neither is it the car companies fault that the government mismanaged the financial markets to the point that credit is nonexistent. Giving over a hundred billion to AIG and nothing to car companies that actually make something and employ millions directly and indirectly would be foolish beyond belief.
— Mark, New Jersey
Recommended by 7 Readers
54.
EDITORS' SELECTIONS (what's this?)
October 31, 2008 9:44 am
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Meanwhile, Cherry, a Chinese car manufacturer, is looking into replacing London's taxi fleet with inexpensive electric vehicles.What's that sound I hear? Must be the boat we missed...
— Thomas, Singapore
Recommended by 5 Readers
56.
EDITORS' SELECTIONS (what's this?)
October 31, 2008 9:47 am
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What seems to be missing in the discussion about bailing out American Automakers is the plight of the dealer body. With the exception of AutoNation, Sonic and United that are publicly traded, the vast majority of dealers are small businesses that fuel local economies. The relationship between dealers and manufacturers has grown increasingly unbalanced in recent years as dealers have sacrificed more and more of the profitability of the business to Detroit.Additionally, had our federal government held Detroit's feet to the fire and enforced CAFE (Corporate Annual Fuel Economy) Standards, GM, Ford and Chrysler would have been "forced" to design and build the sort of vehicles that make Honda and Toyota so successful. Ironically, they have been telling Congress for decades that CAFE could not be achieved without bankrupting them. Seems the opposite may have been true and their "vision" myopic.They built trucks because the Per Vehicle Profit was much greater than with less expensive cars. A very short term mentality that seems more in line with Wall Street than Main Street.Now, dealers around the country own inventories that are not energy efficient. To cap things off, GMAC now requires a 700 Beacon score should you want to finance a GM through them. Less than 10% of most dealer's customers qualify.Now, GMAC is telling their dealer body that they are also getting out of the floor planning business. Yes, that's right. After the manufacturer sells a dealer a car they finance the sale and the dealer pays interest on every car on the lot (including the rebate!) until it is sold to consumers. Now, GMAC is out of money and wants out of the business. Immediately.So, these dealers are being force to find new lenders for millions of dollars inventory in an economy where banks are tapped out or simply not lending. All in all, this means that the domestics are now at a price disadvantage that means they will continue to lose market share to the imports.So, shoring up the manufacturers is one side of the equation. But if you ignore the dealers, it will have a devastating impact on local economies as thousands of dealers face extinction. With their demise goes thousands and thousands of jobs across the country. Not just the folks working there, but the vendors who have been in business with the dealers for all these years.
— Kathy Wiley, Dade City, FL
Recommended by 5 Readers
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