Their board rooms in my view have been devoid of vision. They have promoted and often driven the demand of inefficient, gas guzzling vehicles, and dismissed the threat of global warming. | – | Senator Christopher Dodd |
The auto industry and our governor are asking congress for $25 billion in loans to keep them from going under. I’ve read the governor’s case for making such an investment and it does seem compelling. Living in Michigan, with relatives that work for the car companies, I am deeply worried about the turn the economy might take if the big three are forced into bankruptcy. However, I haven’t heard what I need to in order to support such an investment.
First of all, the guys that have run these companies into the ground need to be gone. They’re infected with the short-term windfall virus. If they’re good and experienced at anything, it’s maximizing profits in the coming quarter. They’ve shown extremely poor performance when it comes to long-term viability, achieving energy independence and selling the American public on sustainable and conscientious modes of transportation. Unless they’re out of the picture, I am opposed to any handouts.
Secondly, I’ve heard many claims about the number of jobs that would be lost, the number of people that would be uninsured, and so on, if Ford/Chrysler/GM were to go under. This is indeed very worrisome and keeps me up at night. But surely, some of the operations would resurface somewhere. When companies go bankrupt, their assets don’t simply disappear. Much is absorbed by competitors or other industries. I haven’t heard a realistic analysis of what might occur on that front. Only the worst case scenario is presented. I’ve had more than my fill of fear-mongering from the current administration. If the governor, media and others can’t present a realistic analysis, I must withhold my support.
Finally, if I’m to support these loans, I want to know there’s a comprehensive plan in place that will do more than delay the big three’s ultimate demise. Why can’t the car companies treat the taxpayers and congress like investors? Give us an executive summary that tells us: who’s going to run the show and what their qualifications are; how operations are going to change to ensure long-term sustainability; how the big three will become competitive again with foreign automakers; and, what our return on investment will be and over what time-period. If they can’t do that, like any half-way competent banker, venture capitalist, angel investor or fund-manager, we should act wisely and direct our funds at programs that yield well-defined gains. |
