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Yesterday, the CEOs of the Big Three were on Capitol Hill, again. Begging for our tax dollars. Turns out they flew in, separately, on corporate jets. The question was:
You couldn't downgrade to first class? Or jet-pool?It pretty much looks like the auto bailout is dead in the water. The CEOs were unable to answer simple questions like: How much money do you really need? What will you specifically use the money for? If we give you this money, will it be enough? How much will be?
Most damning of all was that Wagoner of GM, and Mulally of Ford refused to consider becoming $1 a year men. Nardelli of Chrysler actually earns $1 a year in SALARY, although I couldn't find any information on the other compensation he may receive. (As an aside, he started 2007 with the $210 million parachute from the harm he inflicted at Home Depot, so no worries about where his next meal is coming from.)
In 2007, Wagoner made $15.7 million. Mulally made $21.7 million. There is a level of obscenity here. If you've never seen it, it's a good time to rent Michael Moore's Roger and Me.
Some people don't own cars. Some people have never owned a car, and have no need to own one. Some people (who are generally Americans) own multiple cars, and have justifications for doing so. Here in America one's car has become a way of defining oneself. I'm not saying that's a good thing, I view a car as transportation, but I certainly know people who judge other people on the type of car one owns.
In addition to the immediate economic problems that will be caused by the failure of the US automotive industry, there is emotional pain related to what will hopefully be a temporary pause before the industry retools and begins building green cars. In general, Americans who do own cars, remember the car they learned on, the first beater they bought, the first real car they bought.
One American car company is doing okay: Tesla. They've had some financing and production problems, and at over $100,000 it's out of reach for most people. But it is electric, and people who buy them, like them. For what it's worth, there will still be a domestic producer even if the Big Three go under.
What about you? Please use the comments for your car stories. You know you have them!
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KarenAnne 67p · 854 weeks ago
It's clear Big Anything has no idea or no interest in how to save money. What is happening with the $700 billion bailout is criminal. Paulson should stop handing out that money immediately. Once again our gutless Congress wimps out.
The auto companies and big finance really do need to be turned upside down, so we come out of this with companies making responsible green cars, and we need to provide good jobs (green energy industry, infrastructure, etc.) to their former workers, but without the out of whack benefits that others don't have.
In terms of benefits the playing field has to be level - decent health care for everyone, but people (and I am thinking state workers in RI, here) don't get lifetime fat pensions so they can retire after twenty years of work, funded by astronomical property taxes.
I see a lot of complaints about deflation lately, but it has always struck me as nuts that ongoing inflation is okay. How about stability in prices? How about people living within their incomes and saving? How about little conspicuous consumption?
Janet · 854 weeks ago
Peter Zenger 62p · 854 weeks ago
I'm not sure if most folks kow this, but you can learn a lot about a car by looking at its VIN number. If the first digit is 1 = US 2 Canada J = Japan. At least this is the logic that Honda uses for their VIN, but I would imagine that methodology is fairly universal.
DocJess 71p · 854 weeks ago
I bought a Datsun B210, with 4 speeds and an FM radio. I loved that car. It went 125,000 miles, and I sold it to a friend for $1 and a Chinese dinner. He drove it for about 5 more years -- at that point, the engine still worked, but the body had rotted to the point that he described as having the kind of perforations found between postage stamps.
Since then, I've bought 3 cars for myself, and my late husband had 3 cars during the time we were together. All of those cars were Japanese. I had two company cars, both Fords. The first was a lemon, and I ended up getting the second because the first was too dangerous to drive. (Amoung other things, it had a carbon monoxide leak). Both Fords had brake problems, steering problems, body problems, window up-and-down failures, even minor annoyances like non-functional radios. Of the fleet, EVERYONE had problems with their Fords. (There were about 25 cars in the company fleet).
Bottom line, the Japanese cars, with oil changes, air filter changes and other minor maintenance went long distances and eventually died at 125,000 miles, or 175,000 miles and virtually no mechanical failures in their lifetimes.
So I guess I'd me more predisposed to the saving of the American auto industry if they could actually build cars that worked.
Chad_Nielson 57p · 854 weeks ago
Vicki 51p · 854 weeks ago
As for "Mullaly of Ford", he used to be "Mullaly of Boeing", and my dear dad (now retired from Boeing) used to work with him, and he is a Grade A bas***d. In talking to Dad this morning (he's a card-carrying Republican), we both agreed that the car companies should not be bailed out, for a couple of very good reasons: the pockets of the US government are getting down to spare change (if that), and if these guys dug their hole, then they now they need to figure their own damn way out. Anyway, we just ended the call, with "we are in agreement, there is your bipartisan support." As dad pointed out, if they declare bankruptcy, that doesn't mean that they have to stop making cars ... but they will have to restructure and figure out a plan and be accountable. They will still need workers (maybe not as many, and many they will be forced to take pay cuts at the top).