Let me re-introduce the three stooges of Detroit: Richard Wagoner (CEO, GM), Alan Mulally (CEO, Ford), Robert Nardelli (CEO, Chrysler). You’ve met them on a previous post.
They came back to Washington DC last Thursday in hybrid cars, rather than private jets, asking again for a government bailout. They prepared a more detailed plan for how such a bailout loan would be used to help the three struggling US automakers get through their financial difficulties.
While the public sentiment has not showered them with a lot of smypathy, it appears that the US auto makers will get some sort of a bailout loan, most likely money from a fuel efficiency research program. It’s funny how the government can find billions of dollars in their programs. The recent report that showed some 500,000 Americans have lost their jobs has definitely softened the resolve of some unsympathic politicans.
After watching Curly, Larry and Moe during the saga, I still think a change in leadership should be mandatory as part of the bailout package. These three men are embedded in a system that has taken the once most powerful auto makers into near obsecurity. Their first trip in private jets is an example of how out of touch they are with reality. They have a sense of entitlement that is worse than that of UAW. We need fresh perspectives, real change in the industry.
Let me state for the record that I’m not very optimistic about the bailout. Any bailout now would not be a result of a compelling business plan that outlines a likely turnaround for these companies. Rather, any bailout would be approved only because politicans are fixated on the declining job market.
While we do need to keep America working, the fundamental issues behind the US auto makers’ plight must be fixed first and foremost. That means having labor agreements that are competitive with their competitors. That means having dealer structures that are competitive. That means having a vision for the future. That means having “Apple -like” understanding of consumers. Why would any of us think that this leadership, with its track record, be capable of accomplishing such changes?
Despite the cumbersome process of a bankruptcy, it would allow for a clean slate to come up with new ways of thinking. Filing for Chapter 11 does not mean all workers will lose their jobs. The companies will continue to operate.
Regardless of my opinion, the government will pass some sort of a bailout plan. The three stooges then will have a slightly longer lease to fail again. I hope I’m wrong.
The leadership should perhaps sit down with their respective boards and ask, “what kind of leader would you replace me with?” and then decide if they can become that person. If they cannot, send them home. By the way, what does their severance package look like? This is going to be ugly…
I don’t know what the severance agreement with the current CEO’s look like. But others are starting to call for their ouster as well, including Senate Banking Committee Chairman Chris Dodd. http://www.bloomberg.com/apps/news?pid=20601087&sid=al3FJ0.QT5yI&refer=home
I saw on TV a major news channel interviewing 3 generations of GM workers “suffering” the consequences of poor management however, they are a great part of the problem or at least the union they belong to, the UAW.
It is not right that for everyone else in America, if you want to prosper?, you need to apply yourself, go to college, earn your pay grade conmesurate with your education and effort. However, with UAW there another side, you have these families thinking they are entitled to ever increasing salaries and perpetual health benefit coverage without investing in their futures and passing the buck to their employer under the umbrella of their union.
I think that by the third generation of the family on TV and others alike, the dependence on the union and the big 3 should have been broken and the newer family member become a professional engineer, doctor or other.
Unions such as the UAW are just a competitive burden on american business. They need to be restructured or disolved as part of the “bailout”… along with Big 3 management, whom also share the blame for letting UAW squeeze them for so long.
Hoping for a better future, one where all of us take care of ourselves without expecting government or big business to take care of us.