DETROIT RESCUE PLAN SOLUTION: Spies Tell Obama To Do A Tony Soprano And Make Americans An Offer They Can't Refuse

The Wall St. Journal headline this morning read... "Democrats Plot Detroit Rescue".

The article goes on to say that President Elect Obama has ordered his transition team to find ways to aid the car industry before his inauguration.

The aid is almost a foregone conclusion because Obama owes organized labor and the United Auto workers big time, for heavily investing in his campaign.

It goes on to say that the companies getting the aid would have to agree to strict rules aimed at building green and fuel efficient vehicles.

But it doesn't say ANYTHING about how to fix the problem, which is selling a LOT more cars and trucks.

You can give them all the money in the world but if NOBODY is buying, what good is it?

You just delay the inevitable.

Which brings me to the crux of the issue...

They NEED huge sales increases YESTERDAY.

But how do you get people in the worst financial shape in modern times, to empty what's left in their wallets and buy products that are considered average at best, by the populous?

A lot of the newer GM and Ford products are better than average but the reputation and vibe on the street, is they're building McCain's while the Japanese and Germans are building Obama's.

That's a tough sell in 2008 and beyond.

And would YOU have the warm and fuzzies buying a product from a company that has a mediocre reputation at best that maybe packed up and gone next year?

From what I can see, there is no strategy for that in the Dem's and Obama's plan.

So here comes 001 with the one billionth (might be trillionth if you count bloggers blab) opinion on how to solve the problem.

But I'm the only one who is right. ;)

The only way to fix this fast, is to get people buying the inventory on the ground in dealers RIGHT NOW.

So instead of giving all these billions to the car companies, give the billions to the people to buy up the cars.

I'm half Sicilian so let's call my plan the "Make Them An Offer They Can't Refuse"

We get James Gandolfini (Tony Soprano) do do the ads for free (A way he can share his wealth) and the theme is Mafia rescues Detroit.

Bet the agencies could do some really fun stuff with the theme (They bid it to the agencies to do for free and whoever has the best campaign gets the future ad revenue when the Big 3 recover) and YouTubes servers might blow from all the traffic they would get.

And here's the offer I would recommend...To steal a slogan from VW, I think it's what the people want!

1. Buy ANY existing American car on a dealer lot and deduct the FULL vehicle MSRP right off the top, on your taxes in 2008. The more expensive the car or truck, the bigger the deduction.

2. If you buy a Hybrid, Alternative Fuel, Diesel car or truck that gets EPA 27MPG City or higher the deduction doubles.

3. If you own a business the deduction DOUBLES. Buy a $30k Ford Escape Hybrid and own a business, get a $120k tax deduction on your 2008 taxes.

4. EVERY VEHICLE in stock gets 0% financing up to 72 months.

5. Every vehicle has GUARANTEED warranty coverage, even if the company who makes it goes out of business in the warranty period (Insured by 3rd party warranty company).

Offer is valid until 4/15/2009 and you can still deduct on 2008 taxes as long as car was purchased before 4/15/2009 but you can't get deduction in both years. You can only take in 08 or 09, one or the other.

I know I would take action and buy with an incentive like this. Would You?

And I think a lot of folks would take advantage of this because Obama shows up at the end of the Sopranos-like commercial and tells everyone he needs their help.

The inventory depletes quickly and the Big 3 gets the cash infusion in their coffers they need, to buy them precious time.

If this idea sounds crazy to you remember, desperate times require desperate measures.

The plan may be crazy but dollars to donuts my plan is better than theirs.

Mine would actually work.

Listening Barney?

Make sure you let us know what you think and how you would tweak or change the plan, to make it better.

Maybe we'll all solve the problem and become national heroes!

Lunch at the White House on the big guy! WooHoo!!!!

Agent001 - 11/13/2008 2:47:28 AM

-1 Boost

The auto companies with incentives and part of the bailout money.

001

enp83 - 11/13/2008 8:07:08 AM

+6 Boost

Is a built in Ohio Honda Civic an "American" car? Is a Hummer an American "car"?

Is a 300C an American car even though it's engine is built in Mexico, the car is assembled in Canada and lifted it's steering column, suspension, transmission, etc from a German car?

Over 27mpg EPA city means you're talking about the Escape hybrid and it's siblings along with the Aveo/"G3 wave" (???).

Agent009 - 11/13/2008 9:29:16 AM

+2 Boost

I would think to be fair any company selling in the US should qualify if needed. But the plan should be geared for the Detroit three, and include companies that have assembly plants here in the US as well.

Agent004 - 11/13/2008 1:30:54 PM

+1 Boost

So I spend $30,000 on a hybrid and I get a $120,000 deduction on my taxes (hybrid + business owner).

Or, I don't buy the car and have to pay taxes on the $120,000.

In order to come out ahead, I'd have to pay more than 25% in taxes for that $120,000.

And I'd have to drive around in a Ford Escape.

Pass.

Now if it was $120,000 in tax credits, that'd I'd do.

cantaffordone - 11/13/2008 2:48:14 PM

+2 Boost

As Ross Perot would say - "they're buying your vote with your money" - and people seem happy with that.

CarANDdriver - 11/16/2008 7:40:20 PM

0 Boost

OH WOW. OBAMA WON'T DO A DAMN THING BECAUSE HE IS TO BUSY WITH IRAQ, AND POLOSI IS AN IDIOT

DieselRules - 11/13/2008 3:20:18 AM

+4 Boost

you're reposting this article:
http://www.autospies.com/news/WHO-On-Earth-REALLY-Thinks-Deep-Down-Obama-Can-Save-Detroit-37353/
What's with that?

silver1 - 11/13/2008 5:55:05 AM

0 Boost

LOL! Well that is certainly a deal I cannot pass. I just bought my first American car. Cadillac CTS

Yonder7 - 11/13/2008 6:49:12 AM

-2 Boost

I am not american but I have a british friend that was working at Detroit, he told me this: American auto industry will fail. Reasons: You start to work at 7 or 8 depending on you shift but arrond 4 PM all of them are drunked workers, do not expect anything good. I do not know Detroit or how they work, but I was upset with him. But my question is: did he tell the reality of the american industry?. If that is true, then problem is not in your product, is in your people. Most of the americans hate foreigners cause they get what the americans wish but are not willing to work for. Please remember, You are the greatest country of the world and since boy I learn from you: NO SACRIFICE, NO GLORY. This is not a problem of resources, is very likely that is a problem with the workers, The right question is what they need? and I am not talking about money cause of you have a bunch drunked workers, there is moral problem. BTW I drive a Mercedes and a Cadillac STS, I fan of MB, but actualy my favorite is the STS.

SpicyMikey - 11/13/2008 8:03:39 AM

+2 Boost

It's not only the workers. The Japs are building many of their cars here in the USA now and they are fine and they're making money. It's the a) leadership, and b) the financial structure of the corporation. Ford makes good cars now but looses about $1000 on each going out the door. You don't need to have a masters degree in business to know that doesn't work :)

Having said that, first and foremost they need to restructure how they compensate workers. I say, let the big 3 go bankrupt. That will give them more more leverage to throw out bad contracts and get profitable.

America knows how to build good cars. It's not an industry secret held by the Japs and Germans. Problem is they simply can't afford to build good cars and be price competitive. So, they scimp and cut corners to create something that looks good on the surface and has a competitive price eventhough car savy people know it's inferior.

09CTSVforMe - 11/13/2008 8:12:28 AM

+6 Boost

Great, another way for people to buy things THEY CAN'T AFFORD. America has got to get off the credit addiction, and the auto industry has got to realize that when people are driving a perfectly good vehicle that they don't need to buy another one every few years.

This coutnry NEEDS a recession to get people back to the values of

1. Saving money (you know, for emergencies or retirement or kid's college...little things like that0

2. Live within your means (you know, don't buy things you can't affrord)

3. Be responsible for your own spending (and actions in general)

If you want more, work harder to save up for it. Credit can be an inmmensely useful tool for financially smart people. Unfortunately, it is abused by people (and businesses selling to them!) to live beyond their means.

You've had your wake up call, now learn your lesson!

lexusrox123 - 11/13/2008 8:53:13 AM

+3 Boost

i wish you were president

Foreigner - 11/13/2008 10:43:33 AM

+2 Boost

Let's elect this guy.

woood - 11/13/2008 8:14:55 AM

+2 Boost

OO1,

I totally agree. Your plans is actually not so far fetched but it is what is needed. I also agree on not lending the money but give it to the buyers instead. Lets not forget that Kerkorian is in GM's board and he is probably behind this "plan" that GM is near bankruptcy so when feds lend GM the money, he and other directors he convinced, can get their share and flee. Leaving GM the company to fold.

njsidekick3 - 11/13/2008 8:44:27 AM

+3 Boost

...why not create sales tax cuts for cars that are made in the USA... for like the next 10 years or So...

...if u buy american u can expect to pay like 1/3rd less in taxes for it... or somethin...

veyron1001 - 11/13/2008 9:48:47 AM

+1 Boost

Since you want 33% of the current tax rate on cars what Gov't funded organization do you want to close down for it to happen as you are taking away from govt spending.

Whelan - 11/13/2008 9:25:28 AM

+2 Boost

The foreign car companies operating in the US make money because they do not have Unions. They do not have the overhang of retirement pensions and health pay. They do not have the struggle of potential walkouts and strikes over wages and coverage.

My solution would be something like this. If the US automakers want to do something right, stop making cars we don't want. Import their European models, setup their plants here to make those cars. They are more efficient, offer better engine choices (diesel, turbo 4's, etc.), and look 100% better. Take the Ford Focus for example. It is taking Ford years to realize we want the new Focus, no some retooled same platform boring looking econo car. So they finally are bringing it here, eventually. But not with all the same engine choices. We are not going to get a nice 5cyl. turbo hatch with gobs of power and good mileage. We are not getting the hot looking little convertible Focus either. Take a picture of your European models, copy, then paste on dealership lots here.

91z4me - 11/13/2008 9:32:38 AM

+3 Boost

This is a HORRIBLE idea. The problem is the volume of cars they (GM, Ford, and Chrysler) build it is a problem of profitability. With the Big 3 shouldering the huge retiree pensions and healthcare obligations they simply couldn't make ends meet (while spending more on materials, design, and transportation costs). Now that the VEBA plan is in effect the UAW will be shouldering that burden after the Big 3 pay them a large lumps sum. This means GM, Ford, and Chrysler need to get through about 1 more year before they have the ability to increase margins on each vehicle. In the mean time the drop in sales has reduced their ability to meet current obligations by reducing funding. That is why they need short term help.

While I agree that some very big strings need to be attached to this money (to restructure management in GM specifically) I don't think that just trying to increase volume in the short term will help anything.

mercuryguy - 11/13/2008 10:14:52 AM

+1 Boost

So many American Car Models. They all look alike, just jellybean shapes with different names.

Not 1 Large Diesel Sedan or Wagon. Some people want an extremely durable car that is very low maintenance and extremely efficient.

It amazes me that you ask for what you want at the American Dealers, and the sales people shrug their shoulders. Why they can't produce the obvious is a mystery. Chevy's answer for a business sedan is the Impala with a gas engine, give me a break already.

neutral - 11/13/2008 12:24:06 PM

0 Boost

MercuryGuy,

Stop blaming Detroit for the lack of diesels. It is the US government that is not allowing diesels to go through. Check out the emissions regualtions, then you'll see the meaning of B.S..

Now, diesel will be an option for heavier duty applications because at heavy loads, you will see fuel economy gain of 40-70%. At lighter loads, like a Malibu or an Impala, you typically see improvments of 25-35%. These gains are further diminished thanks to DPF's (thank your congressmen/senators/president). I consider myself an bigtime environmentalist.. but the new emission standards want emissions so clean that they weren't even measurable in a laboratory not more than a few yrs ago. This is horsesh*t.

Also, you call American cars drab? Compared to what.. the Toyota Corolla or the Honda Civic. Domestics are by far more attractive than their appliance counterparts from Japan. Chevy Cruze is going to be an attractive small car, Malibu is very attractive, and the crossovers (Acadia/Enclave) are gorgeous.

mercuryguy - 11/13/2008 10:28:15 AM

+2 Boost

Veyron1001:
I agree, Tax incentives at the consumer level is Win Win. This is better than throwing money at the big 3. Give the money to the American consumers, and let it trickle up to the car companies. This stimulates the economy, helps dealer stay in business, and saves the big 3 in one swipe.
In New York State we pay $3,000-$5,000 in Sales tax at point of sale, then a big Registration, plate and Title fee, then a Fee for Each tire on the car. This is a huge dis –incentive to buy a new auto. People avoid having to buy a new car like the plague. New Yorkers only shop for a car when their old one falls apart.

I’d like to see a Federal Tax Deduction for the purchase price of a Big-3 Car. Write the entire purchase off like business owners have the right to do.

mercuryguy - 11/13/2008 10:44:20 AM

+3 Boost

09CTSVforMe:

I totally agree, buying a car only when it is needed is more prudent. We need to get back to saving money.
The problem in America, is that the idea of Saving Money seems to be reserved for American Companies.

Among the Fortune 500 companies I’ve worked for, every third word out of their moth was “we need to save money and reduce costs”

The problem with this idea is these same companies expect their employees to deficit spend to enhance the company’s image.

They expect the employee to provide a new company car and maintain it. They expect you to buy new Laptops, and new suits and so on. They wasn’t you driving something impressive and late model and they certainly don’t wasn’t you coming to work looking like a miser. And they don’t want you showing up for work driving a Chevy Cobalt. They instill in you that spending money is the responsible thing to do, while they turn down the thermostat, shut off office lights and cut jobs when no one is looking.

09CTSVforMe - 11/13/2008 10:59:09 AM

+1 Boost

What company of that size monitors their employees parking in the lot or deck? My wife works for one of the largest banks in the world, and they have no idea what she drives or where she parks, because the facility is huge.

And also, if you work for someone who rquires you to buy a new car or laptop out of your own pocket, I'd suggest looking for a different employer. I can understand the suit part, if that is the dress code. How you carry yourself while conducting business is their business, but if what you drive is part of that image, then you should try to negotiate or factor that into your compensation plan.

Additionally, would they really frown upon driving a 5-6 year old 5 Series or E Class vs. a 1 year old one?

jgf330xi - 11/13/2008 11:05:46 AM

+2 Boost

Also make the DONATION of a used Vehicle to a charity deductible at 3 times the value of the car as set on a certain day.. eg NADA value as on Sept. 1, 2008.

BUYING sounds good, but most will need to trade or sell their current car. The dealers will not be able to offer anything for them, and the used car market will crash. Used cars will be worthless..

You cannot allow deduction for buying used, because that does not help the Manufactures, only used car dealers.

Charities can use the cars or they can sell the unneeded for profit to them.

EL34 - 11/13/2008 11:06:06 AM

-4 Boost

Obama will create a planned society with no winners or losers.

It didn't work for the Soviet Union and it won't work for the USA.

neutral - 11/13/2008 4:08:12 PM

+7 Boost

Bimmerfan25 is right... sorry pal, you loose. Pure capitalism isnt the way to go either.

A happy mix of mostly capitalism with control to prevent the greedy criminals from taking advantage is what I support.

gkearns56 - 11/13/2008 11:21:08 AM

+2 Boost

To 1UAW: I presume based on your posting that you work for one of the Big 3 or are a UAW member. My brother just retired from Ford's in August after 32 years there. He even said to me that the Big 3 are at a disadvantage of almost $3000 per car because of the huge pension plans for retired workers, and the COLA (cost of living allowances) given to the auto workers. Why do you think many of these auto companies are moving out of Michigan. Because of the ridiculous demands the UAW leaders places on the companies. Now management is not without fault, but the UAW leaders have always wanted to strike when they don't get everything their asking for. It's only been recently that the UAW has seen how dire the situation is.

Based on a story on CNN this Thursday, the American auto workers hourly rate per unit is about $74 dollars (which includes all their benefits and pension) compared to a non-union shop of auto workers of $42 dollars per unit. Right off the bat you're at a disadvantage; nobody wants to have an auto bailout if the money from this bailout is just going go to pay for the pensions and health insurance (as part of the CNN story noted) for retired employees.

Personally I never would have given into some of the unions silly demands. I would have moved the auto company out-of-state and said find another job where you THINK you can make the kind of money that I'm willing to pay you now ($74 dollars an hour). No the UAW would always have to strike one of the Big 3. Seems to me the union workers got greedy. You can't move a pile "gadgets" on the factory floor without having to call the guy next to you whose job that was. My brother told me the parts he needed could be 10 yards away and he'd have to call that person whose job specialty it was. That just crazy stupid stuff the union imposed.

Here's the $64K question that was posted on the CNN story. Why not let the Big 3 file Chapter 11 - reorganization (not Chapter 13 Bankruptcy) and let them get their act together. You think that stupidity should be rewarded (Making all those Gas Guzzlers like Ford and Chrysler have done). Let's see: Ford had always relied on their trucks, specifically F150 to make them their big profits.

I don't want anyone to lose their job, but it seems to me those fat cat UAW leaders have much of the blame to shoulder on this one.

neutral - 11/13/2008 12:15:41 PM

+1 Boost

gkearns56,

STOP BLAMING DETROIT FOR SUVS!!!!


Consumers wanted SUV's so Detroit made them. It's not complicated. Also, people need trucks for work and hauling. Everyone, stop blaming detroit for supplying America with an essential tool (trucks).

chewy - 11/13/2008 12:12:20 PM

+1 Boost

If you own a business the deduction DOUBLES. Buy a $30k Ford Escape Hybrid and own a business, get a $120k tax deduction on your 2008 taxes.

That sounds like an excellent plan ready for abuse.

And Agent 1, your plan will cost over 200 billion in tax write offs. Based on about 30,000 average car price and about 7.5 million cars sold. That is a fat loss of revenue, in a time when the country has too much debt.

chewy - 11/13/2008 12:34:12 PM

+1 Boost

ok, the tax write off costs would be lower as your offer is only good for about half a year, so possibly about 100 billion less in tax returns.

Your solution gives Detroit (how about American made Toyotas?) a chance to move some inventory, but it doesn't solve the internal problems.

mini22 - 11/13/2008 12:38:14 PM

+2 Boost

You know what it is a cultural problem. What I mean is unlike many foreign car makers the American car companies have been cowering to union power for ever.One major reason American car makers have not been profitable is as been mentioned the union health and pension plans. Because of this American car makers have been unable to make a profit on building small cars. The reality is it can cost just as much to make a small car as it does a large car. This is even more prevelant now due to the fuel economy issues and the luxury that the general public expects to be built into all vehicles today.001's idea is not bad but in reality it is a band aid on a enormous wound. Fundamantal changes have to take place all the way down to the cost of building a car today.
1)The cost of building a car must be the same for American car makers as it is for Foreign carmakers. That even playing ground MUST happen. If that means that congress must put a tariff on any foreign car maker building cars in the US so be it.
2)Congress must force banks who traditionally loan money to people to finance cars to actually start lending again.**This needs to specifically be geared to the amount of bail out money they would receive.
3)People should be able to deduct the entire cost of the vehicle but they only qualify if they buy a new vehicle from GM,Ford,or Chrysler.** Regarding lending-None of this GMAC crap of only lending to people with a score of 720 or above. Reasonable interest rates must be available for scores 600 or above.Further an across the board cap on all auto loan interest rates at 18%.In return no personal use trucks over a half ton be allowed on public roads and All trucks must come either in hybrid/gas,diesel or hybrid diesel applications.All diesel produced cars get a further $1000 tax credit.Last all union members have their health benefits and pension plans be 50% owned by the government.

chewy - 11/13/2008 12:40:19 PM

+2 Boost

and apperantly some senators are pushing your plan

http://blogs.cars.com/kickingtires/2008/11/new-car-tax-cre.html

Agent001 - 11/13/2008 12:52:40 PM

+1 Boost

1500 bucks?

That's nothing.

You won't get masses to take action with lame ideas like that.

You need to play off people's greed.

001

Agent001 - 11/13/2008 12:48:29 PM

-1 Boost

Looks like people dig it...I'm more popular than Pelosi

Google search for Detroit Rescue

Google search for Detroit Rescue

001

91z4me - 11/13/2008 10:59:37 PM

+2 Boost

If Google search hits are how you measure popularity then Britney Spears is more popular than you too.

09CTSVforMe - 11/14/2008 7:53:44 AM

+2 Boost

Not to burst your little ego post bubble, but Nancy Pelosi is not a high bar to beat in the popularity contest... : )

Designer1 - 11/13/2008 1:00:19 PM

-1 Boost

Well, if the money is given to me so I would give it back to the garbage 3, then we haven't solved anything, I'll be stuck with a horrible car and the rich is richer. But, I like the tax break part.

But seriously, the government WILL bail out every company that comes out and say I'm broke, and we the citizens WILL get screwed big time, so it will show that the Democrats truly do not pay any crap about the people. So my suggestion is this, do not ruin the peoples' credit line when they're foreclosing their homes or unable to make car payments anymore, after all no money will come to us, at least don't ruin our records too, and still pay the companies our billions of tax money, we’ll accept that.

neutral - 11/13/2008 4:05:05 PM

+1 Boost

Well, since you seem like such a smart guy... here's your choices:

A) $50 billion loan to automakers to allow them to withstand this mess we & our "responsible" Government got us into

B) Hundreds of billions in lost tax revenue and millions of people out of work. No real industrial base, massive brain drain... ie America becomes weak.

Since you seem to know everything (which I can tell since you label them the "garbage 3") I'm sure you can make the correct decision (but if you can't, I'd love to help).

skippee - 11/13/2008 2:22:32 PM

+2 Boost

gkearns56...kudos to you for telling it how it is. i think you plan is the best...reorganizing sounds like the best way out...will this affect how the golden parachutes are treated???? ie does this mean cutting off the benefits of all these fat cats laughing all the way to the bank because they retired some time ago and contributed to the mess the big 3 are in currently?

gkearns56 - 11/13/2008 2:23:01 PM

-1 Boost

Neutral: One of my vehicles I own is a truck. Let's take Ford as an example, you don't need to build all these trucks & SUVs: Ford Excursion, Ford Expedition, Ford Explorer, Ford Escape, Ford Ranger plus variances; F150, F250, F350, then a variation of these too such as Dulleys, Step-side, Extended Cabs, 4-dr cabs, no cabs, Ford Vans, Ford custom vans, Ford work van. Too many products that are the same line.

We then have many of these SAME gas hog vehicles for the Lincoln or Mercury side. All auto makers need to stop this crap of merely rebadging and SAVE some money.

Why do I have to have GMAC truck AND Chevy. Some of the crazy fools swear by GMAC or Chevy; they are built alongside each other. Save the money and offer just a GMAC or Chevy truck

And what about the real reasons I noted why these auto companies are failing. The coost of the UAW pensions and health insurance causing US automakers almost a $3000 difference in the per unit that they must makeup on the price of each car to pay the retired automakers or UAW benefits.

Having a brother who worked on the line in their Warren, Michigan plant, tells me that the US Automakers tried to have their cake and ice cream too. They should have been building products in line with what more people wanted. They obviously didn't want all those low mileage SUV/trucks. The UAW owns part of this blame too.

neutral - 11/13/2008 3:45:57 PM

0 Boost

I know GM better than Ford, so for the purpose of this post I will base it mostly off GM.

For example... Chevy1500 - Everyday use, towing boats, construction, hauling, etc.

Chevy 2500 - heavier usage, heavy construction & contracting

Chevy 3500 - Almost always commercial use (hauling chemicals, cherrypickers, etc)

ALl of you above-mentioned truck/van variations are built because there is a specific market out there.

As for "badge engineering", it has its ups and downs. As a brand (within GM), I want to be common with all other GM vehicles (same parts wherever possible). its cheaper and less complicated.

Let's say you are making light bulbs. Wouldn't you want your Green, Red and Clear bulbs to have everything the same except for the colors?

Also, here's another twist in the mess... Lets say GM shuttered sells 100,000 GMC1500's and 100,000 Chevy 1500's. If GM shuts down GMC, what are the overall sales going to be? Assuming a constant market (not growing or receding), the answer is most likely No. Chevy1500 wouldn't automatically sell 200,000, it just wouldnt happen.

neutral - 11/13/2008 4:12:16 PM

+1 Boost

Cmon now.. you make it seem like Tony is a bad guy... he just had a bad childhood. thats all.......

However, tony did drive a Chevy or Cadillac... so he'd a good guy in my book.

What... like you have no skeletons in your closet?

gkearns56 - 11/13/2008 4:10:57 PM

+1 Boost

For someone who is "neutral" you sure miss the point in all your discussions. We're NOT talking light bulbs; those are parts. We talking about having to bailout - WITH TAX PAYER'S MONEY again, for the Big 3. To do exactly what: pay retirees pensions and health insurance cost. That's what part of it will be used for according to GM and them since they will have trouble make those payments. Just on CNN as I watch Rick Sanchez, Congressman Sandy Levin (brother of Carl Levin - Senator) tells us that the Big 3 are learning from their past mistakes. I'm from Detroit; grew up there all my life. You mean they are just NOW learning from their mistakes. Congressman Levin said Detroit didn't give the people the products they wanted and didn't bring them to the public quick enough; didn't make fuel efficient cars likt the foreign auto makers did. There are simply too many vehicles like SUVs/Trucks that have hurt the domestic brands because they relied on those TOO MUCH. Now as the market is changing again, the Big 3 aare not prepared (as usual). If you are so correct about let's keep producing ALL these truck SUVs, then why isn't EVERY Joe the Public not buying these vehicles. Partially because of the banking problem but well before that Ford, GM and Chrysler had a 104, 98, 129 day supply of vehicles sitting on lots.

People are feed up of bailing out the FAT CAT losers. My brother who worked for Ford was making $85 dollars an hour. He put nuts and bolts on a car. When he'd work on a Friday or Monday that was a holiday, he'd get double time. Gee I think the UAW should have given him triple time - NOT. With that kinda of analogy heck why not produce more vehicles like that work of art and gas mizzer GM's Hummer - not. Scale back your product to be efficient first; make quality products and cars people really enjoy. GM has been talking about this Camero since the Detroit Auto in 2004. Why has it taken them so long to get this car out. Bottom line on this issue is the UAW has created as much or more havoc for the Big 3. A recent story on CNN said that the Honda, Toyota and Nissan factories in America do NOT want or support the UAW. Reason: if they can keep the price of their vehicles competitive, build quality cars they know they will have the advantage ($74 per hourly unit rate vs $42 per hourly unit rate, including benefits). That's a big difference right out of the gates and hard to justify in any business.

skippee - 11/13/2008 5:19:21 PM

0 Boost

halle freakin lujah gkears56!!! it doesn't take brain surgery to figure this all out! People will argue "but what about the CTS and what about the Corvette and the Malibu?" Three desireable cars out of, i dont know....a product line of 50 does not a good car company make!!! SO....after all these years in business, what have Ford, GM, and Chrysler learned (Im talking management here).....not much i say.

91z4me - 11/13/2008 10:58:44 PM

+1 Boost

I will add some other high demand domestics to the list: Buick Enclave, Ford Mustang, Chevy Tahoe and siblings (which OWN the fullsize SUV segment), F150 (best selling vehicle overall for what 25+ years!), Chrysler 300 (which set the RWD car wars into over drive).

They problem isn't that they don't make top notch cars it is that every car isn't top notch. The management let stuff rot on the vine and didn't re-invest, they cost cut to increase profit margins which were instantly eaten away by healthcare and retiree costs.

But things have at least changed at Ford who is committing to 3 year product cycles and will replace or update EVERYTHING in North America by 2012!

mercuryguy - 11/13/2008 5:21:59 PM

+1 Boost

Someone mentioned gas hog Mercurys. Those who assume that V8 cars are guzzlers are stating false facts.

I get 25MPG on a plain 2 wheel drive Grand Marquis on the interstate.

I didn't buy a gas hog SUV, because I can tow and move the same amount of cargo with a plain 4 door sedan with a big trunk.

I didn't go extreme SUV or extreme Miser econo-box, I stayed in the middle with a sensible car that I can do far more with than just commuting round trip to the office.

Everyone bought into the wacky idea that everyone needed to have a big gas 4x4, and burned huge amounts of needless gas which drove us into a shortage. Now these same people want to go electric and attack people with multi-purpose cars.

Fact is, My job requires me to pick my colleagues up at the airport. These guys have big waistlines, and they bring along luggage and laptops with them for business meetings. An econo-box is simply insufficient for my needs.

Truth be told, I really don't want to sit in an econo-box with 4 large men,where some part of my body is in contact with the person next to me, even if gas were $10.00 a gallon.

beetee - 11/13/2008 8:01:26 PM

+3 Boost

The culture has to be changed. This will require a CTRL-ALT-DEL of the entire American auto industry. Here's my package:

1. Government buys out existing pensions. Obviously, no more pensions for current auto workers. Why? No one ELSE in America has them. GM provides standard 401(k) for current workers along with matching program and financial education (on-site or via partnerships).

2. To reduce medical benefit costs, existing employee health care will be serviced by on/near-campus health care centers whenever possible. Anything requiring after-hour, specialized or extensive care is covered at normal hospitals/doctors by GM group insurance plan. Retirees are also covered at GM health care centers. If you live more than xxx miles away from a GM Healthcare Center (tm), you can have a supplementary plan for normal health care. You can opt-out if you want, but since the government will subsidize it as part of the bailout (as well as the first feather in Obama's Healthcare cap), it should make it a pretty good alternative to what the rest of us stiffs have to endure.

3. All jobs from janitor to CEO will pay competitive salaries (read: somewhere around whatever Honda and Toyota pay). Employees who do not like this will be offered a buyout. Employees who do not like either option are out of luck.

4. All processes will be streamlined to remove any inefficiency due to union politics. It takes Honda or Toyota around 4-7 steps for a design change. Due to UAW nonsense, the process at the Big 3 can take triple that (or more). This will obviously mean that the UAW will have a severely diminished role--unless they can put their heads together and find a way to truly add value to the American automotive industry AND the worker. This inefficiency also includes the layers upon layers of useless middle and upper management. Again, following best practices from the Japanese, German and Korean models. Exec pay will be curtailed, but an incentive package will dwarf the Japanese competitors' offerings--provided goals on sales, improvement, efficiency, innovation, etc. are met or exceeded.

I LOVE the tax-credit idea and would apply it LIBERALLY to green vehicles--especially if someone can make a green CTS-V for under 67k.

I mention Toyota and Honda merely because they are the most direct competition and frankly, the most successful model. FWIW, I am from Michigan and hate Honda and Toyota from my DNA. However, I am also a realist. :-)

weaponX - 11/13/2008 10:44:48 PM

0 Boost

“…the Big 3 gets the cash infusion in their coffers they need, to buy them precious time”

Precious time to do what? Delay the inevitable? Like trying to revive a corpse.

Even if they get the cash, they’d still have to pay back tons of corporate debt, which leaves very little to invest in new products.

Without new products they wouldn’t be able to compete with Japanese and European manufacturers.

91z4me - 11/13/2008 11:03:03 PM

+2 Boost

Corporate debt isn't something that has to be paid back rapidly, in fact most large scale corporations have some debt out there. The precious time mentioned is until new products hit the shelves and the VEBA is completed and they don't have to shoulder the burden for retiree benefits. That would be obvious if you would have read the replies instead of just adding your own comment immediately.

mercuryguy - 11/13/2008 11:42:09 PM

+1 Boost

beetee:
"no more pensions for current auto workers. Why? No one ELSE in America has them."

What about the State going broke with the State Pensions for Teachers, Road crews, Prison guards, Law enforcement and so on?

Seems like we can no longer afford these liabilities as well.

Lets face it, so much of our money has left this country to be deposited into forien banks that we are losing our standard of living.

Money for consumer goods going to Asia, money for oil to the middle east, Money to fund wars and finally What we can't afford, we barrow funds from Asia.

Now it bankrupts us all.

mercuryguy - 11/13/2008 11:59:19 PM

+1 Boost

To buy a new car at my local dealer=$3,000-$5,000 in Sales tax. A major disincentive to want to buy a car.

The state is desperate for this Tax revenue to fund State Pension liabilities.

A Federal Tax Rebate is the only way to offset these State Tax liabilities.

Lets Face it, America has basically priced itself out of the Global Market in pursuit of the lifestyle we want.

weaponX - 11/14/2008 8:57:42 AM

0 Boost

No one is gonna buy a car from a near-bankrupt company, no matter how good the rebate.

And, how exactly is it gonna look if an environmentally conscious Obama administration starts giving tax credits if you purchase a gas-guzzling Suburban?

mercuryguy - 11/14/2008 11:45:42 AM

0 Boost

Those who are required to provide and drive a car for thier employer will.

I'm in sales. I drive about 25,000 miles per year. If I can get a huge discount, that is all that really matters.

I don't care if the Auto maker is bankrupt in a few years, by then the car will be ready for the boneyard. Drive the car into the ground, and get another one for the lowest price possible.

My service team is required to provide a late model car as well, the discount would help them as well.

We currently don't get any tax write-off for providing work vehicles.

But Business owners do get huge Tax write-offs plus depreciation.