The recent trip by the executives of the Big Three automakers to Washington to try to artificially prop up their businesses, to me was a disgrace and extremely poor decisions by their leadership.
Some economists blasted the move saying that the problems of the companies are self-inflicted.
Peter Morici, professor at the University of Maryland and former chief economist at the U.S. International Trade Commission, said: "The automakers spoke with President Bush about energy, healthcare, foreign exchange and material costs. In doing so, they demonstrated 
the cognitive dissonance of an alcoholic arguing his high blood pressure is caused by his wife's cooking." He added that "Responding to their pleadings, President Bush gave the automakers a sympathetic ear and a polite no. He should have given them what I offer my adolescent son when he is unreasonable: A figurative boot in the rear."
He's right in this case. With a 25% tarriff on trucks imported from a number of their competitors, which is valued at around $5,000 a vehicle, they still couldn't compete with their well-managed rivals.
The market has told them that they are outrageously high on wages and healthcare, and have been managing like they could go to the government and get bailed out.
All the subsidization of the companies needs to stop they need to be forced to operate in the competitive marketplace with costs that reflect that reality. In other words, they need some great leadership to step up and get the job done.
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The Japanese auto companies pay competitive wages and also have to absorb health care costs. Could the fact that they produce cars that people want and produce them much more efficiently than their American counterparts have anything to do with their success? American auto executives pay themselves exorbitant salaries as their market share continues to decline. What the hell is wrong with the Boards of Directors. It's time to fire these imposters and bring in some Japanese managers, who work for lees and produce more.
Posted by: Thomas Molloy | November 19, 2006 12:36 AM | Permalink to Comment