Flint: Detroit, Heal Thy Self

[tama z71]

Detroit: Heal Thy Self
Jerry Flint, 01.05.06, 11:50 AM ET

The strangest thing about the crisis in the American auto industry is this: Nobody outside of Detroit seems to care.

General Motors (nyse: GM - news - people ) could go down. Ford Motor (nyse: F - news - people ) could go down. If either company fails, hundreds of thousands of workers could lose their jobs and health benefits. I'm not saying that this is going to happen. I'm just saying that the American people and the leaders in Washington don't seem particularly concerned about the traditional U.S. auto industry.

I remember when we used to say that one in six jobs in America was connected to the automobile industry.

I remember in 1953 when the head of General Motors, Charles E. Wilson, said, "What is good for the country is good for General Motors and vice versa."

I remember when the folding of a small automaker, little Studebaker, was a big story on the Dow Jones ticker, the front page column of the Wall Street Journal and got the journalist who broke the story promoted to executive editor...

article continues at link

http://www.forbes.com/home/columnist...0105flint.html

[chad4835]

Makes you think. Hopefully the strategy of "sink or swim" will work or a lot of people will be out of work.

[yassir(snowman)]

ya its terrible. these companies dont sell alot out side North america while european and japanese compete with ford and Gm on their turf.

[mgescuro]

Gotta love this quote...

The United Auto Workers union and its members have an image problem, too. Sure, in recent years GM and Ford have made progress in working with unions and in achieving improvements in quality. However, for far too long UAW workers laughed at complaints about quality, and the union did nothing to punish workers who failed to perform. In terms of pay, pensions and health care, UAW workers are better off than most Americans in private industry.

[Globalist]

Very nostalgic piece. Sad but true!

[give_it_all_]

Originally Posted by yassir(snowman)

ya its terrible. these companies dont sell alot out side North america while european and japanese compete with ford and Gm on their turf.

They're doing really good everywhere except North America. Opel/Vauxhal are doing great, Chevy in China is picking up quickly....
They are just losing in their own turf, and it's not right.

[BigAls87Z28]

It is a shame that not many people care about the plight, but I cant honestly say that Idont see why. GM has done a lot for this country, and this country doesnt give much back. GM as well as Ford and Chrysler have jaded there customers and the public, and the media helps it along with everyone ready to see them fall. Its almost embarasing to see one of the largest industries in the US, soemthing that is near all American, and no one cares what is going on. Working in the auto service business, I understand 100%. People dont care about things unless its broken already and they have to fix it.

[Cortazzo]

It is absurd that honda and toyota make almost all of their profits in the US while our homeboys lose money here, it doesn't make any sense.

[LAMRONH]

The president is out to lunch, congress is after a free lunch, and the talking heads are so infatuated with their own visage on the toob/voice on the radio that minor issues like another Great Depression are beyond where their minds can and will go.

[yassir(snowman)]

there is gm in china

[CarShark]

It just makes me laugh. I don't want to see any one fail, but it seems like they are destined to. Every time people here laud a decision, there's one right around the corner that make us wonder if anyone has a brain. And it's just the U.S. We hear plenty of positive news about GM and Ford's gains in Europe and Asia and Australia, but in the biggest car market...the one that they should know better than anyone else...their home court, if you will...they blow it. Monstrously. I just can't bring myself to feel sorry about them, since it seems like everyone there is out for themselves. There doesn't seem to be much loyalty there.

[Mikkoo]

Originally Posted by CarShark

It just makes me laugh. I don't want to see any one fail, but it seems like they are destined to. Every time people here laud a decision, there's one right around the corner that make us wonder if anyone has a brain. And it's just the U.S. We hear plenty of positive news about GM and Ford's gains in Europe and Asia and Australia, but in the biggest car market...the one that they should know better than anyone else...their home court, if you will...they blow it. Monstrously. I just can't bring myself to feel sorry about them, since it seems like everyone there is out for themselves. There doesn't seem to be much loyalty there.

I personally don't find this a laughing matter. Yes, there is plenty of blame to go around, however if any domestic mfg's fail, it's the taxpayers that pick up the tab for the bailout.

[MrMax]

Great article. Everything is put in its proper perspective. Everyone within these companies is partly responsible for their troubles. Now is the time to take that knowledge and correct the problems. There is no one to lean on. No one to complain to. Handle it yourselves.

[ByTheLake]

Each of those states has two Senators and House members interested in protecting the foreign factories in their states, not doing favors for Michigan.

Excellent point. Time have changed since Chrysler's bail-out!

Hey, if people are unemployed, maybe it will be easier to fill the army's ranks.

Yeah, so let's send all the inactive JOBS BANK people into the armed services TODAY!

Face up to it Detroit: America doesn't care. You have to save yourselves.

That sounds terrible, but he's probably correct.

[quickrick]

Once again, Jerry Flint takes a situation that can be difficult to understand because of it's broad scope and complexity - and distills it down into simple language that explains it perfectly. It also explains why raging self interest amongst too many individuals bent on empire building and turf wars within the auto industry and government are sinking a great enterprise because they refuse to look at the big picture and work for the common good - something that the Japanese manufacturers are very adept at - even here. GM management and the UAW beat each other bloody with their tools while Toyota takes Washington out for dinner and drinks.