Big Three Bailout
I'm for a Big Three Bailout. I'm a true believer in American ingenuity and technological prowess, and I truly feel that having the Big Three domestic automakers as viable, going interests is important to the United States. Moreover, they've made too much progress recently to let them completely fail.
Reading some of the comments about this debacle on websites like CNN and the NY Times makes me want to drink myself into a puking mess though. So many people out there ranting about how the Big 3 produce junk and how they need to just go bankrupt, etc, etc...is quite frankly, a little disturbing to me. I knew that in a lot of circles, the opinion on our own domestic car makers was bad, but I didn't really think it would be as bad and as misinformed as it is.
Of course, my guess is that it's probably the same people posting similar comments on multiple message boards. I'm sure that at the end of the day, most Americans simply don't care, and probably don't post anything (and/or don't have a real opinion either way), but to read comments like "let em die" and "they don't make cars people want" either makes me wonder if these same people are actually employees of their competitors, or simply just haven't stepped inside a Big Three showroom in 20 years. There's no doubt though that this is a growing, popular sentiment - GM, Ford and Chrysler now command less than half of the US market, something that has only just recently happened.
The way I look at this mess, is that even if I wasn't a car nut, and even if I drove an import (well, my wife does), I still would want to give these companies a chance - (we're giving companies like AIG an opportunity, and over the last 8 years we've let Halliburton essentially get all the business it wants thanks to the Iraq War), why not let three of the largest manufacturing companies in the country, who actually employ a shitload of people, that actually produce tangible products from parts that are made right here in the United States, have a chance too? Common sense would tell me that the Big 3 spend untold billions of dollars on engineering and technology, IT products, parts, people, etc, etc. to make it worth at least trying to prop them up (financially) so that they can make it through the recession and pop out on the other side. Wouldn't it be cheaper on society, given the size and complexity of these companies, to let them keep going as operating interests, as opposed to having thousands upon thousands of people suddenly on unemployment? Having followed this industry for a while now, I know they've made some major improvements not only on the product side, but on the business side as well, slashing costs and reducing their work force to keep up with their import competition. One of the smartest moves that these companies made was restructuring how they pay their workers health care costs when they renegotiated their UAW labor contracts in 2007 (putting the onus on the union to pay for health care). I'm convinced that if the economy weren't so weak, and credit weren't so tight, that they'd probably be able to shore up the financing they need to sustain these efforts and keep going until 2010, when their new labor contracts take hold.
Moreover, I think anyone half paying attention, even outside of being a car industry nut, would at least notice that the Big 3 are starting to produce viable, competitive products? I mean, don't people drive around and see the cars around them in traffic? Lets face it, what's the real honest to God difference between a Honda, a Hyundai, a Chevy Malibu and a Ford Fusion?? That's right - as Andrew Dice Clay would say, "what's the fucking difference?" - because there really isn't any! But ask the common Joe on the street these days, and you'd think the Asians are building their cars out of gold or something. If you really poke and prod around any of these products nowadays, you'll see that the Big Three are not just competitive, but in some regards, ahead of the curve. The recent Cadillac CTS is proof positive that these companies know how to make an awesome car - just like they did in the 1960s.
Like we've all mentioned before, it's a gigantic perception problem that the Big 3 face, and it's absolutely awful when I see it manifest itself on the comment boards by the general populace. In a strange sort of way, I see simply writing off the Big 3 car makers, their history, and their recent accomplishments almost as a slap in the face for the United States.
What's amazing to me is a lot of the "let em die" crowd probably tends to feel the way they do because they've either been burned by a Big 3 product from 20 years ago, or maybe feel that the Big 3 don't produce fuel efficient cars, or that the quality of the Big 3 sucks. However, every single one of these mantra's can be countered by facts that actually support the Big 3 and their message.
On quality, viability and simply having appealing products - just picking up a magazine or searching out information on Ford and GM's recent product hits and quality improvements brings up loads of good information, from publications like Consumer Reports and auto rags like Car and Driver and Motor Trend. The information is out there.
On fuel efficiency - Cobalt, Focus, Aveo, 4-cylinder Malibu and Aura, 4 cylinder Fusion, new Ford hybrid models - even GM has hybrid models out there. GM and Ford will soon have plug in hybrid cars (in 2009) and GM is introducing the Volt Electric Car in 2010. Sadly, Chrysler is still behind in this category I think. The last fuel efficient car they sold was the Neon, and the killed it. I think that was a big mistake. The Sebring is an okay car, but unfortunately I don't think it stands a chance these days in this crowded marketplace.
If these companies die, then so goes an entire large chunk of the American middle class, and an industry that helped that middle class, and our entire country become what it is today. Think of the how many different people were effected positively over the last 100 years through their "car" experiences? This is an industry that has inspired songs, books, poetry, art, whose products have even taken on the roles as key parts of movies (the movie "Bullitt" comes to mind)- these companies are deeply woven into the fabric of our Nation. We see their products in Norman Rockwell paintings and we read about them in Keroauc novels. Christ, Bruce Springsteen sang about 396s and drag racing, he sure as shit never wrote a song about Credit Default Swaps. Their factories were utilized during WWII to help build tanks and planes. Throughout the backdrop of 20th (and now 21st) Century American history, the Big Three have been there - sometimes in the background, and sometimes at the forefront, but there nonetheless. See the USA in your Hyundai just doesn't make as much as sense as in your Chevrolet, now does it?
But even if there wasn't such an emotional attachment to their products or their history for some people, wouldn't it be healthier as a country to figure out exactly what the real problems are that these companies face, and then embrace some sort of cohesive plan to help them fix it? (Simply considering how much R&D, purchasing, finance, HR and engineering $$$ is involved with these companies)? I would think this would be a much more noble and worthy cause than say, giving AIG $250 billion to do absolutely nothing, or giving Halliburton contracts to essentially run the War in Iraq (which does nothing to help our own country's infrastructure).
Lastly, helping out the auto industry is another way to help feed the economy from the bottom up, which in some academic circles, is considered paramount to a successful economic recovery for the United States. Former President Bill Clinton's Labor Secretary Robert Reich says it best when it comes to ensuring that our country remains economically strong moving forward in his commentary from November 19th on NPR's "Marketplace".
It's essential that these companies get the financial support they need to make it through this recession. This is a loan, which will be paid back (with interest). Without a viable, domestically owned and controlled auto industry, I feel that we can almost essentially take ourselves down a couple of rungs on the world ladder. Despite what many feel, this is an important business, that too many people rely on. If Congress does nothing, or comes up with more political excuses as to why this would be the wrong way to use taxpayer money, I think the consequences, especially over the short term, would be absolutely devastating for our economy.






