How would you save the US auto industry?

[AngryAmish]

If you favor giving the Big 3 billions, state how it would help.

If you favor not giving them anything and letting them go into bankruptcy, state how it would help.

The main problem is everyone involved in the auto industry likes things the way they are. The suits get their jobs, the unions get theirs, the suppliers get to sell what they want. However the industry does not seem to be selling things people want to buy right now.

[glowing]

1. Re-tool them #1, and increase everyone's wages.

[AngryAmish]

6. How does increasing wages help them?

[Idealism]

17. Increasing wages gives the Big 3 a market to actually SELL their cars to

[glowing]

24. Increasing American's sallaries would help them purchase the automobiles.

[AngryAmish]

36. It is hard to know where to even begin

1. Big 3 auto workers average right now about $73 an hour in total compensation (at least that is the figure I have seen). Assuming 2000 hours in a year that is about $146,000 in total compensation for a job - a damn fine wage. I don't think the automakers are failing for want of autoworkers inability to afford their vehicles.

2. Yours is an argument for inflation. If, by decree, the next administration stated that everyone's wages would be increased tenfold it would not mean people would be able to get more stuff for less labor. It would just mean inflation would increase tenfold.

[Idealism]

47. You shouldn't believe off the wall shit like that

$73 dollars an hour? cmon man learn to question things. The average wage of a UAW is $28.00 an hour, which includes benefits already. Nobody is 'getting rich' off working on an assembly line, but it would be nice to support a family off it, like you could before. if gm would cut their managements pay, they could easily increase workers wages, how the hell would that lead to inflation? GM isn't printing money man... think about it.

[glowing]

49. I don't mean auto workers.. they have been luckier than most of us for a while.

Most of us don't have money or support or anything like that... So, when the entire US of A is paid a wage that pays for the cars and has benefits, then we wouldn't be having a discussion about the future of the Big 3.

[AngryAmish]

54. Who should pay these wages?

Automatically raising the minimum wage to $30 does not mean that everyone can afford cars. Many people will get fired and things would get incredibly expensive (how much will a Big Mac cost when people at the drive-thru are paid $30 an hour?)

[glowing]

71. McDonald's is part of the problem. Why do people go to fast food?

Its fast and its cheap. Fast meaning, we don't take enough time to consume a healthy, sit down, take a few minutes to enjoy real food.. and cheap because people don't have enough money to take the time to go and eat something that is healthy and good for the body. Our entire society in America is too fast, too on the go, and unhealthy. Appreciating one's life should be a mandate in a world that goes by much too quickly. Is a deadline soooo necessary that you miss your daughter's recital or your son's football game or your anniversary? NO. This awful perception of go-go-go is destroying this country. If people don't have time to stop and smell the roses, they don't have time to realize what is important in life, and they don't have time to realize what they are missing out on. On one's deathbed, does one want to say, WOW, I made all my deadlines, was a success in my job.. but then looks around and realizes that his wife has been gone for 25 yrs and she took the kids and the dog and you have no one around to remember your successful life?

What people are realizing is that jobs that demand so much, leave us with so little. Looking into your child's eyes as they cry for you to stay at home with them for the day, and your telling them, "baby, I can't, mommy has to go to work today.. so, we can eat for the week", is very hard... AND that week is a sallary and consumes 56hrs of your life every week... AND now, because no one cared enough when things were better to preserve for even better years ahead, that you are lucky to still have a job.

[notadmblnd]

21. I wouldn't say increase wages. I would say hire people

people who have money buy things. I would love to buy a new car. Unfortunately I am unemployed so I have to keep driving the one I have paid off. If I had a job, I could maybe buy a new one. something smaller, something greener.

[Idealism]

22. Thats not a smart move

thats just perpetuating our credit frenzy excuse of an economy. We all got into this mess in part because people borrow to buy things they couldn't afford. over 60% of Americans are more than 40k in debt. We need to get off this crap and go back to the days where if you didnt have to cash on hand, you just didn't buy that new shiny object that you probably don't need.

[ayeshahaqqiqa]

2. Government becomes major shareholder

and as such regulates CEO salaries to 10% more than the lowest paid worker. Union shop, of course (also wouldn't be sad if the unions took majority shareholder status). Scale down production to no more than five basic models--heavy duty truck, pickup truck, SUV type, and small sedan. Make all run as either hybrids or on compressed air. Relegate many factories in the US to retrofit existing vehicles with compressed air engines.

[Speck Tater]

3. Retool them to make windmill generators. NT

[YOY]

4. Screw them. Start a new industry or two. Same union. Streamlined management.

Progressive industrial ideas that allow them to be the first mover and sever all ties with their oil buddies.

First mover wins if done right.

[Warren Stupidity]

5. I would nationalize it and use it as the foundation

for developing a personal transport infrastructure for the future.

[ayeshahaqqiqa]

23. I second that idea

start by using existing green technology and make R&D work only on green fuels/recycling parts rather than cosmetic changes to vehicles.

[Subdivisions]

39. Thirded...

Considering that global oil production is in decline and likely to only get worse, an new transportation infrastructure designed for people (rather than the automobile) is essential to the future of civilization.

[dysfunctional press]

51. isn't the national highway system already a personal transport infrastructure?

what do you see that needs to be done differently?

[Warren Stupidity]

55. maybe we don't need highways at all?

What needs to be done differently?

I am open to suggestions as to what a sustainable personal transportation infrastructure looks like, what kind of vehicles are used, and how we people get around locally, regionally, and long distance. Think big. Think long term. Think sustainable. None of those thoughts (except the big part) went into building the interstate highway system originally, and we are now paying for that lack of vision.

[dysfunctional press]

58. personally, i see the future pretty much the same as the present...

except that the cars are driven mostly by electric motors or bio-diesel hybrids.

[alfredo]

63. Same here. I'd turn it into a sort of transportation Manhattan Project.

If we could find a Steve Jobs/Jonathan Ives type team for the auto industry, give them five years to turn the American auto/transportation industry into what it should have already been. We need a visionary and a man who can make those ideas real.

We will also have to change our cities and suburbs to be more public transportation friendly. We will also need infrastructure to support the new post petroleum vehicles.

[dsc]

7. nationalize health care

thus taking that cost off their backs. Also give them some money to retool to build more fuel efficient cars which people apparently want.

[Mz Pip]

8. There would be strings attached

The auto industry would have to produce cars that were energy efficient. No more gas guzzlers.

No one in the companies would make more than any government employee makes. So the CEO of GM would be stuck making around $400,000 a year. If they want our tax dollars then they have to agree to being paid government type salaries.

No more Golden Parachutes. When you leave the company you get a going away party put together by your co workers and a gift certicate to a nice restaurant.

[Warpy]

9. Temporarily nationalize them with a clearly stated sunset clause

in terms of profitability. Nationalize through the bailout buying a controlling interest in stock. Fire the top management and promote from within, knowing the business being more important than accident of birth. End the princely salaries for top management. Start a space program type R&D effort to develop long and short distance vehicles using renewable energy (hint: ethanol can be made from farm waste, not just corn or sugar beets, and hemp produces oil).

Consider selling the company to the employees when it's time to push the industry back to the private sector. It's worked that way before an it can work that way again.

Part of this has to include national health care. US companies can't be competitive while they're carrying such a heavy burden.

[tinrobot]

10. Do what FDR did in WWII - retool them to make more important stuff.

Back then, tanks and planes were more important than cars.

Now it's windmills, mass transit, and electric vehicles.

[angrycarpenter]

11. There is no saving it in it's current form

people no longer have the money or the credit to pay on a car that will barely last until it is paid off.

It seems that the republicans will soon get one of their fondest wishes, the end of UAW.

[juno jones]

12. Retool for mass transit

The numbers for transit use jumped when gas went thru the roof. They have remained high despite the falling prices. Get trains and buses going and expand systems. And keep going greener. It would be nice to put what's left of our industry and infrastructure towards building a future.

[hlthe2b]

13. Replace their management with that of Toyota?

not totally sure I am kidding....:shrug:

[suston96]

14. Give? Who is talking about "giving" anybody anything?

How about guaranteeing loans (as has been done before - Chrysler 1980) that must be paid back with interest within a specified time limit.

And with certain other conditions - including producing cars with alternative fuel use.

I doubt if the car companies want a handout from the taxpayers. Not a single penny from the taxpayers has to change hands. Banks and other credit institutions will do it all. The taxpayers -the government - will simply guarantee the loans, and as Chrysler did in 1983 the auto companies will pay back the loans with interest - 335 million of which went to the US Treasury in 1983. And BTW, Chrysler paid the loan back early.

[onehandle]

15. The real question is "How would you save 3 million+ jobs?" nt

[ret5hd]

16. Make the oil companies bail them out.

[DainBramaged]

18. Place the same tariffs and restrictions on imported cars trucks and parts the Japanese and Koreans

place on us, add health taxes to their cars to offset the cost of manufacturing Domestic automobiles, limit the number of car and trucks that can bring in each year.

GM: phase out Saturn, GMC, Buick, the Bus division, the locomotive division, and heavy trucks leaving Chevy, Cadillac and Pontiac

Ford: eliminate Mercury

Chrysler: Stop building cars and trucks and build only the Jeep line

The new Enviornmental Auto Company: move the workers and production facilities under this umbrella and build/design/research alternative fuel vehicles from buses to cars.

[blue_onyx]

31. Glad you mentioned traiffs

I completely agree with your first point. During our Governor's re-election campaign in 2006, she pointed out that Korea limited the number of vehicles we could sell in their country to 4000. Yet we allowed their companies to sell as many as they want here, in the name of "free trade." Our trade policies need to do what is in the best interest of our country and our companies.

I disagree about discontinuing Saturn and Buick. I like the Saturn vehicles. Buick I think has potential. The new Buick crossover (Enclave) has been doing well. I read an article that said the average age for the Enclave was around 50, which is much lower than the average age for the Buick brand(68, I think). They also got a lot of foreign trade-ins for the Enclave. So I think Buick has potential...their problem has been the lack of models and outdated designs. If I had to get rid of any brands it would be GMC, Hummer, and Pontiac....none of these serve a purpose.

[DainBramaged]

45. Saturn not only mirrors Chevy in models it competes directly against them

Buick's demographic in this country is 64+. We sell TWICE as many Buick's in China as we do here. Chevy for the everyman (cars and trucks), Pontiac for performance, Cadillac for luxury. and that's it.

[blue_onyx]

48. I've heard that Saturns attract people who usually don't buy US cars

My cousin went from a Honda to a Saturn and the only US brand they looked at was Saturn. Pontiac is the most useless. Their cars are suppose to be "performance" but they aren't. I don't see a need for performance cars either. I think Pontiac competes more with Chevy than Saturn does.

Yes, Buick's demographic is older but with the large number of baby boomer entering that age bracket, Buick's target market is growing. Also, I don't think the number of vehicles sold is the most important thing....it's profitability. Buick won't be a mass market brand like Chevy but I do see more potential for this brand than some of GMs other brands. Although, I'm not sure of the financial situation of the individuals brands because that would be important in deciding which brands to discontinue.

[tammywammy]

50. Buick does have potential

And I agree, the Enclave is a very nice vehicle. I was very impressed with the Enclave and if I had a family or needed to drive around more than just me, I would definitely look into one.

[AngryAmish]

38. Mr. Smoot, may I introduce you to Mr. Hawley

[MindPilot]

19. Build thundering ground-shaking V8 muscle cars that do the 1/4 in 12 seconds

At least then they would have a product I'd like to buy.

Seriously, why does economy and style have to be diametrically opposed? Please, give me something that's clean, quick, fast and doesn't make the person sitting in it look like dork.

[DainBramaged]

20. We have those

ask me again

[MindPilot]

26. Yeah I know, the retros are pretty cool

I particularly like the Mustang and the Challenger and even though I've always been a ford guy the Impala SS is not bad either. (I saw the new Camaro at SEMA--not real sure what to think yet) But they are just not the same as the originals. I just can't bring myself to spend upward of 100k on a restored GTO.

What I really want is for vans to be cool again. My dad bought a 1966 Dodge van brand new when I was 12. I learned to drive in it; my son learned to drive in it and I drove that thing until it finally tossed a rod sometime in early 2000.

I guess I'm just getting old...maybe time for me to buy a Cadillac. :)

[DainBramaged]

35. You got to go to SEMA

I am not worthy

[flvegan]

32. Better yet, slick looking 300 hp turbo 4-cyl cars doing 13 sec 1/4 and

getting 30 mpg. Oh, and do it for under $25k.

Hell, 20 years ago, GM mass produced a good mpg 13 second Buick friggin Regal forchristsakes. Don't tell me they can't do better now.

[IDemo]

40. Too many wheels

http://www.youtube.com/watch?v=BcZ6r1Vq9Qg&feature=related

[LiberalFighter]

25. First, fire Rick Waggoner!

Cut upper management's salary, benefits, bonuses and stock options.

Require that any bonuses be stock in the company and they cannot cash out for 5 years.

Unpaid oversight board for the bailout money.

[taught_me_patience]

27. Let bankruptcy happen

Allow GM and F to restructure debts, shed their pension obligations, and renegotiate union contracts. Then the gov't could buy preferred shares at 10% in order to provide increased liquidity. This would allow GM and F to reemerge as stronger companies and they will be competitive again. If they continue on as business as usual, any money lent to them will be money thrown down a black hole.

[smuvop]

34. We have to put tariffs back on all imports!

First US has to protect its own industry, Japan, Korea, China all protect themselves but we let the Republicans and big corporations since early 80's come in and get rid of the 35 percent tariffs we used to have, now we have less than 3 percent tariffs on imports.

2nd we have say to all auto makers foreign and domestic that 50 percent of all parts are made in the USA, this will create manufacturing jobs here in the USA. We need a whole new free trade agreement that benefits us.

[LWolf]

28. Since you asked:

1. Raise standards on fuel efficiency, safety, and reliability. NOW. Not someday, not in a few years, but NOW. Money available to support the retooling, etc. that would require.

2. Fix prices and profits, with help, to make the product affordable.

3. Require that all manufacturing, including all parts, be done in the U.S. with union workers.

4. Provide huge $$ incentives for buyers to trade in old gas guzzlers for new fuel and cost-efficient american models.

That's not "giving them billions." It might cost that much, but it's not free. There are requirements to be met.

[Swamp Rat]

74. I like those choices

I would also include wage caps on CEOs (and eliminate many upper management positions all together), making them comparable to workers wages, as well as giving the workers more control and ownership.

[LWolf]

77. Yours are good ideas, as well.

:hi:

[Vinca]

29. Let them reorganize through Chapter 11 in order to purge the failed

management. Give them funds already appropriated for retooling for cars people actually want to buy. Institute UNIVERSAL, SINGLE-PAYER HEALTHCARE immediately which would eliminate one of their greatest expenses, employee and legacy health benefits. Offer taxpayers a giant deduction or rebate for purchasing an American made car and guarantee that existing pensions of auto workers won't go down the black hole. Lastly, make any assistance on the condition new jobs are created and existing jobs stay within the boundaries of the continental United States. No Guam, no American Samoa weasel loopholes. Another issue is the auto workers union. A car company can't be expected to be nanny for life. My dad worked on the line at General Motors and, after he retired, GM was still the major provider for him. They even provided an attorney to attend to his estate after his death. That's crazy.

[AngryAmish]

41. Would you support increasing the compensation of upper management?

Obviously there are people out there that can manage companies. But it appears that they don't work for the large domestic auto companies.

So one has to poach talent from other industries. Upper management pay across industries is pretty consistent. HOWEVER, to get good talent to work for these companies you will have to convince them to move to Detroit. That will require a large wage premium. How do you think it will go down to have taxpayer money going to increasing executive compensation at the Big 3? Nightmare.

[Fiendish Thingy]

30. minimum mileage of 30 mpg- not average, minimum for all vehicles n/t

[TexasObserver]

33. Make loans available ONLY if they meet certain standards.

Such as standards for emissions and gas mileage.

Likewise for officer compensation.

[NashVegas]

37. First: Go Private

Buy back all the stock while it's cheap.

Next: start building good, attractive cars for people who make an average salary, at a price that costs no more than 1/3 their annual.

Stop chasing the high end consumer with vehicles of ugly and/or design. If I have $30k to pop down on a vehicle, I'm not buying an ugly car!

[Township75]

42. They can sink or swim. Their choice.

How will this help? Not sure it would help them much short term, but it would kill off 3 companies that aren't very good at what they do. They are struggling while Honda America and Toyota America are doing OK in this environment, and their workers get payed comparably to those of the big 3 (maybe not management).

It doesn't help the big 3 short term, but my argument is that all of the small business in the US is struggling too and may not last, yet there is no bail out for them. The message will be clear: make sure your planning can adapt quickly and make sure you manufacturing and adapt quickly to changing environments. That will help all of us.

[safeinOhio]

43. 50% tariff on all imports.

National health care. Tax breaks for union shops. Now that would be an even playing field. Oh, and $1.00 compensation to management, like Iacoca got, until they become profitable again.

[Oregone]

53. Have you heard of the Smoot-Hawley Tariff Act?

Im all for tariffs. BUT...they do have consequences. 50% will have impacts.

[Township75]

59. Those 50% tariffs won't do squat for the big 3, because...

toyota, honda and the others already have plants in the US. Those companies are doing OK.

The reason people are not buying the big 3's products isn't because there isn't national heath care, they hate unions, or management makes more than $1. People aren't buying their cars because they don't want them.

[dhpgetsit]

44. Bottom up.

Retool US plants for hybrid and plugin electric and other alternative vehicles.
Demand higher mileage standards.
Protect american labor through tariffs.
Make sure there is no advantage for auto manufacturers to use cheap off-shore labor.
Pass universal health care to even up the playing field for start-up manufacturers.

[Greyhound]

46. Take them over. Fire upper management. Maintain wages and hire

more workers. Raise the safety and emissions standards for trucks. Re-tool the factories for production of smart vehicles. Create partnerships between automotive and technology industries.

...and the two biggest moves;

20% - 25% tariffs on any cars or parts imported from any country that imposes the same on us.

Universal Single Payer Health Care.

[Oregone]

52. Nationalize facilities & create a socialized "Affordable Green Volkswagen" type project

Offer benefits for purchasing, as well as payment plans (like Germany did), advertise buying them being patriotic, make them incredible....pump them out. Create moderate TARIFFS on international auto-imports, and reinvest tariffs into worker training and factory improvement.

Reinvest partial profits of sales into the plants & worker pay, and the rest into Universal Healthcare

[leftofthedial]

56. crash job-creation programs;

tax and other incentives for companies that provide long-term, good-paying work for Americans, building job security;

fix the health care mess (using a not-for-profit, single-payer system like Kucinich proposed, not an insurance-company-based, corporate program like Obama)

provide funding for entrepreneurial start-ups and programs within the Big 3 that will produce a high quality, super-high-mileage, small car ("green car") ASAP;

provide government funds to provide purchase incentives for those who buy the new green car(s);

tie any government assistance to any private sector either to public ownership (nationalization or partial nationalization) or to strict management controls (strict "maximum wage" requirements tied to worker pay, replacement of incompetent management, etc.);

implement strict, high tariffs on imported goods, including cars.



The car companies are failing for three main reasons:

1. hardly anyone in this country can afford to buy a car and many of those who can are not confident they'll have a job six months from now;

2. imports are, in effect, subsidized by US trade policy, in order to drive down prices and destroy organized labor in the US; our absurd and completely broken health care system also has saddled domestic manufacturers with extremely high costs;

3. management of the Big 3 has been criminally greedy and incompetent (taking their cue from repuke leadership).

[Kahuna]

57. Tax incentives to consumers to buy the cars. nt

[LuckyTheDog]

60. Nationalize them

And change them from top to bottom.

[AngryAmish]

64. With thinking like that we have British Leyland making wonderful cars to this day!

[LuckyTheDog]

69. This is not the UK and not the 70s

GM, Ford and Chrysler are not Rover or Jaguar.

[mwooldri]

75. There are some similarities and differences.

In the 1970's economically the UK had an oil crisis, the IMF bailed out the UK economy, labour relations were at an all time low (lots of strikes), and manufacturing was definitely on the decline. British Leyland was in effect almost a forced marriage between a failing company and a successful one. Problem is that these two companies competed on too many lines that rationalization was needed and fast, and they couldn't cut costs fast enough to stay afloat, or generate nice new car models that people would buy whilst generating money for BL. BL got nationalized, basically to save jobs.

Now we've had an oil price crisis, the US economy is 10 trillion dollars in debt, and manufacturing is on the decline here like it or not. The difference here is that GM, Ford and Chrysler are all experiencing difficulties and if any two (or if all three) merged there would have to be quick rapid fire rationalization with lots of job losses period to realise any cost savings. Otherwise they'd be competing with itself and losing money still for no reason.

Nationalization of a sort may be the only saving grace for these car manufacturers, IMO.

[GrizzlyMan]

61. Fire the management, re-tool and SIMPLIFY the product lines

Get the unions to give a little ground on their wages and compensation to help fund the pensions for the retired folks at the levels they were promised.

Unions are important, but paying workers $70 an hour when your in deep red ink is not sustainable and a bail out won't fix that.

[Ozma]

65. Amen to firing the management, without any pensions or golden parachutes! n/t

[Initech]

62. Shift focus away from gas guzzlers and toward hybrids, bio diesel, and fuel cell powered vehicles.

Also make the three companies open more American-made plants. There's a reason why Toyota, Honda, and Nissan are kicking the American car companies' asses right now.

[JVS]

66. Have them switch to Monorails!

[McCamy Taylor]

76. Good idea. Have them go to work building mass transit system cars.

[csziggy]

67. Contract with government agencies for alternative fuel, energy efficient vehicles

That would give them working capital to continue operations and employment for their workers. And it would establish standards for vehicles that would be efficient and encourage practical technology for those vehicles. This would get government and public agencies using efficient vehicles. It would also produce distribution points for alternative fuels.

Once the car companies have to produce real numbers of these vehicles, it would then pay for them to sell them to the public - unlike the token numbers of alternative energy vehicles that have been introduced as teasers but not produced in numbers sufficient to meet the demand for them.

If the big car companies cannot meet these requirements, they will not be able to meet the needs of the country and the world in the future and do not deserve to stay in business. I believe they have enough technological capability in existence now to meet these requirements but simply have not had the motivation to do it. That is why any assistance to them needs to be tied to production of energy efficient cars - and why shouldn't the American people get the benefit in the form of making our government more efficient and at the same time spurring the companies into making that technology available to all?

[Lydia Leftcoast]

68. I'd give them the money on the following conditions:

1. Replace any executives who advocated selling gas guzzlers. No golden parachutes. Just out the door.
2. Retool to produce only fuel-efficient cars and mass transit vehicles
3. Set up a corporate tax exemption for each car produced with 100% US-made parts and 100% US-based workers.

[javadu]

70. Bail Them Out With This Condition

This MUST be the first step to the NEW GREEN ECONOMY!!!! The Big 3 have a great opportunity to lead the world in developing new clean and green cars, but they won't do it without motivation. So, here is a great opportunity. Save American business, American jobs, and set the industry on a path toward efficient vehicles.

I know the proposal of vague --- but the details can be worked out by the wonks. At the end of the day, I just want this thing to lead to the new green economy.

[JackRiddler]

72. I would rebuild the railways and add 20,000 miles...

reopen the Erie Canal, build mass transport systems, create large pedestrian zones and covered streets in the cities, encourage conversion of streets to gardens, subsidize local organic farming, put up wind turbines, solar-panels the roofs, create town centers with light industry in the suburban sprawl zones.

One day we might have this:

http://carfree.com

As for the car companies, I see a rational use for electric and hybrid vehicles, as small and cheap as can be managed.

[dugaresa]

73. Bail them out on condition

1. The current management would be removed.
2. Focus on fuel efficiency and safety.
3. Produce products that people can afford. The fact that even small cars cost some 20K is just unreasonable to me.


There is nothing that says fuel efficiency can't be good looking....

I think that Ford's biggest crime was making the Jag look like a Taurus and the Volvo seems to be morphing into an Escort...those are bad design decisions...perhaps they should talk to more consumers and gear heads about their preliminary designs.

[Kalyke]

78. Single-payer health care, tariffs and restrictions on foreign-owned

automobiles, fair wage for more people to purchase the automobiles and re-tool the factories to make cheaper and, let's face it, more attractive, eco-autos.