President Elect Barack Obama just did his first interview since winning the election on 60 minutes and I was especially interested to hear his take on the Detroit Rescue Plan.
I will paraphrase and comment on some of the things he said:
He started by saying we have to wait to see how things play out before he finalizes a decision but he favored a plan that provided assistance to the auto companies PROVIDED it was not a blank check.
He described trying to create an assistance plan that was a bridge loan to SOMEWHERE vs. to NOWHERE.
The right plan would have to demonstrate what the auto makers, labor unions, suppliers, management and lenders saw as a sustainable auto business is going forward.
And in Obama's words is something he hasn't yet seen and THAT's what we have to come up with.*
*001 reads between the lines here (in other words EVERYBODY, especially labor is not going to like the sacrifice required to get this deal done).
It won't be pretty and in the end it may not keep them alive.
Steve Crofts then said "A lot of people think the country would be better off if we let GM be allowed to go into bankruptcy".
And the President Elect responded, "These are extraordinary circumstances and banks aren't even lending to businesses who are doing well and in this circumstance, the usual options may not be available".
Crofts also asked about gas prices dropping and does that delay the urgency of changing our habits radically.
In response, Obama said its more important than ever even though it will be politically harder.
He mentioned that we Americans are too caught up in this mode of 'Shock and Trance' where we go through a panic and then things settle down then we go back into a trance and back to our old habits.
We wish him luck and he is sure going to need it.
This wouldn't be easy for anyone elected to the office during these conditions.
So what do you read into his words?
"The right plan would have to demonstrate what the auto makers, labor unions, suppliers, management and lenders saw as a sustainable auto business is going forward."
Who has the most to lose under the final plan he will approve or reject?
Is organized labor licking their chops thinking a payback deal is coming for their support or will they get the shock of their lives and have to agree to major concessions?
Let us know what YOU think.
LA Auto Show Photo Gallery