far been unable to reach a consensus on the proposed $25 billion bailout program to help the big 3 U.S. automakers: Ford, GM, and Chrysler (see image, right). While Democrats are currently pushing for immediate relief, Republicans on the hill want to see funds loaned to automakers dedicated to the re-tooling of the industry. As President-elect Obama is shaping his staff, agenda, and administration in the days before he assumes office, I chose two blogs that offer solutions an Obama administration may want to consider, if they are not already doing so. The first blog is located on the Huffington Post and authored by Raymond J. Learsy. It contains his most recent post entitled "Detroit's Rebirth as the 'Arsenal for America's Future'" in which he advocates the revival of the auto industry through thorough governmental reorganization not unlike what was needed during World War II. This time however, instead of building tanks and aiding the military industrial complex, Detroit could harness electricity and reduce our dependence on foreign oil. The second blog post I chose to comment on is entitled "Is the American auto industry worth saving?" This article is part 2 in author Robert Farago's posts on the subject at thetruthaboutcars blog. In his article he takes the position that the automakers are in the position that they are in due to poor upper management and business practices. I have left my comments on each post at each blog, but have also reprinted them below. I encourage reading both articles as each offers a substantially different viewpoint on the subject of the auto industry bailout proposal.Detroit's Rebirth as the "Arsenal for America's Future" comment:
I am glad to see someone writing who does more than lambaste either lawmakers, the auto industry, or our dependence on foreign oil. This problem is a complex one, and it is even further compounded by our current economic situation. However, I couldn't agree more with your position that instead of running around as if the sky is falling, why can't we as a nation work towards an auto industry that is at the forefront of manufacturing clean, green, and energy efficient vehicles? As FDR stated, and as you quote in your post, now is the time for America to once again "become t
he spearhead against world conquest". Although, in today's terms, I would argue as you have that 'world conquest' should be replaced with conquest by OPEC (see image, left). Nations like Saudi Arabia, Dubai, Iran, and Venezuela are acutely aware of the dependence America has on "black gold" and even go so far as to set their yearly budgets pegged on the price of oil! Granted, this substance is their chief export, so this is somewhat understandable. However, when the consortium of OPEC countries holds emergency meetings to determine how to get the price of oil back up in order to make a larger profit, we as a nation need to pay much closer attention.
You also point out, rightly in my opinion, that the cars currently being produced are not conducive to an American landscape. For example, just this past weekend I made the drive to San Francisco from Los Angeles. This drive would require at least three full charges of an electric battery powered vehicle. However, you point out that these cars should not be looked at as reasons not to go ahead with production. After all, it is a starting point from which our auto industries can build upon.
This is a problem with a definite solution. I only hope that Detroit comes to its senses before it's too late.
Thank you for your insightful post. I welcome your feedback- http://www.blemmon.blogspot.com
"Is the Ameican auto industry worth saving?" Pt. 2, comment:
Your take on this "crisis" is very interesting. I agree with you that this proposed infusion of cash is infuriating, considering that the big three: GM, Chrysler, and Ford are doing exactly what you point out in your post- shipping jobs overseas to stretch their dollar. Does saving the 3 automakers insure jobs here? Yes. Of course it does. But does it also ensure that these companies, in order to cut costs and stay afloat will cut their highest paid workers? Of course it does. Where do those highest paid workers reside? Right here in the good ol' US of A as members of the UAW making union pay at $74 an hour. This money from the government is necessary- these companies employ hundreds of thousands of people and not just at company owned plants. Think of all the laborers and employees that have positions at subsidiaries of these companies. What will they do if the automaker suddenly stops ordering windows or windshield wiper blades? However, the bailout money should come with a very clear caveat- re-structure your business to compete with the other auto makers or we, the taxpayer, will not prop you up. One merely has to look at Toyota to see how a company should treat its workers. During this economic crisis, when American companies are shedding jobs, Toyota has not fired ONE person. See this courier press article for what they are doing for their employees- http://www.courierpress.com/news/2008/nov/01/making-the-most-of-down-time-toyota-uses-for/.
In your opinion, what do you see as the best solution to the problem? Do you think that breaking up vehicle conglomerates like Ford (who owns Ford, Lincoln, Mercury, Mazda, and Volvo) should be broken up into single entities to foster competition in the marketplace?
This much is clear- changes need to happen, and fast. Otherwise, we may see the end of vehicle manufacturing by American automakers. How strange would it be for the world to exist without Ford, the company started by the inventor of the machine that has changed the world?
I thank you for your insightful and informed post. I also welcome your comments and can be reached here- http://www.blemmon.blogspot.com








