What Were You Thinking?

The big three automakers went to the hill this past week to ask Congress for a bridge loan of twenty-five billion dollars.  Believing that they could not be denied, these CEOs were ill-prepared to face the inquistion of lawmakers and too arrogant to be shamed by Congressional remarks and comments to show humility.  LA Times reported that the CEOs of Chrysler, GM and Ford ran into a wall of skepticism from a broad cross-section of lawmakers concerned about the environment, unions and Japanese auto plants in their home states; all topics that the Big Three seemed to dismissively sidestep with a fancy dance.   As I watched this story unfold over the last few days on television, I couldn’t help but wonder, what were they thinking?  These are very highly-paid, highly compensated  CEOs of the three major American automakers.  These are men who are responsible for making dynamic decisions that affect not just their employees, but support businesses, educators, home builders, politics, environment and the list goes on.  The tentacles of the auto industry are many and deep and they are embedded in just about everything that is American.   Yet, these Autogods were totally clueless.  In fact, I see a whole new genre of dumb jokes that has nothing to do with blondes, on the horizon.  Why did they fly in on their private jets and face Congress without a new and improved game plan?One possible answer might be that Chrysler entered the meeting with a false sense of confidence from the last government loan they borrowed back in 1979.  They paid that loan back early, the government made an additional $500 million and the nation got the minivan.  But wait a minute, now that I think about it, when Iacocca went to Congress to ask for around two million dollars to save Chrysler, he had a plan based on his strong communication and marketing skills.  EEENT!  Wrong Answer.

Another possible answer might be that they are too big to fail, but according to the Christian Science Monitor,it’s a financial scenario that sounds all to familiar to Uncle Sam.  Congress is now on its guard and is hesitant to continue to throw money at the problem without some promises.  The financial bailout attempts so far have done very little to stop the financial crisis.  In fact, instead of using the bailout money for loans, financial institutions that took the money are hoarding it or using it for daily operating costs much like the Big Three plan on doing.  That money did nothing to create healthy corporations, instead it bailed out terrible investment decisions and created an even bigger liability for the government down the line.  EENT!  Wrong Answer again.

A third possible answer might be that the Big Three are still stuck in the old Republican regime of More of the Same  They expressed that the purpose of the $25 billion  loan would be used to cover daily operating costs until the economy turns around and people start buying cars again. None of this money would be offered to finance car loans to the pubic.  Also, there is a strong possibility that these automakers might need another loan when this one runs out.  They have $25 billion available in a Retooling and Energy Efficency loan, but for some reason, parties involved seem hesitant to use it.  The people of this great nation spoke their minds on November 4th and overwhelmingly chose Change over More of the Same.  The Democratic Caucus voted to replace John Dingell, who headed up the Energy and Commerce Committee and was a strong friend and advocate to the auto industry for the past 28 years.  This is a clear signal to all concerned that the “Good Old Boys” are no longer in town.  So, guess what folks, EENT! More of the Same is also a wrong answer.

The fourth possible answer might also be the most common one heard from corporate America en masse these days.  “It’s not our fault, we didn’t see it coming.  We are victims too.”  Guess what Auto-gods.  That’s what they pay you the big bucks for.  It is your job to be looking ahead.  It is your job to look into the future.  It is your job to surround yourself with people in the know, not sicophants that kowtow to you. Back in the1950’s George Romney, CEO of now-defunct American Motors Corporation and past Governor of Michigan decried big car companies as dinosaurs headed toward extinction, but no one paid attention to the trouble ahead.  The Big Three were in competition to see who could make the biggest, most popular gas guzzler, but I remember there were also a lot of VW Beetles on the highway that met a need that the Big Three chose to ignore.    My father-in-law once said to me, “If you are not part of the solution, then you are part of the problem.”  When you blame others for you short-sightedness and greed, you join the other corporate-gods as being part of the problem.  So, EENT! Another wrong answer.

What is the correct answer?  Well, you might want to think about what our legislators talked to you about.  They  showed much concern that you don’t understand about where we as a nation are headed right now.  We all understand that business is in business to make a profit and the auto industry is no different than any other business.  But, you don’t seem to get it that you can still make a profit and be a key player in helping the environment by producing high-energy efficient cars.  You have had the technology for years, but you have dragged your feet when it comes to getting these cars into production.  Take the leadership role that you are being paid for and put the environment right up there next to profit. You don’t need just one goal to shoot for; you can make a profit and still be environmentally friendly.   You are asking this government for this loan, but ultimately it will be the taxpayer’s burden.  You can repay this loan to them in two  ways.  First get you act together, produce energy-efficient cars and offer to repay this loan quickly.  The second way you can repay American taxpayers is to guarantee that you will create jobs in this country.  You are American corporations built on the image of what is good to be an American.  You owe your allegiance to America first.  Find a way to make a profit in this country with American workers in American factories.  It is time for you to either rethink your investments in foreign countries or turn to Mexican and Asian taxpayers to loan you this money.  And finally, get out of the bubble and see what life is like in the real world.  This is not a time for excess.  Fore go the corporate jets, fancy vacations and golden parachutes until you have turned your companies around.  I know, you think that you have earned them and deserve them, but most of America does not agree with you at this time.  Try living like your factory employees until this loan is paid back.  You need to re-humanize and see the world from a different perspective.  If you don’t, all the money in the world will not fix your problems.’; //leave this line

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