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GM, Ford - Won't Pledge to Buy American
By Michael Collins (about the author) Page 1 of 3 page(s)
For OpEdNews: Michael Collins - Writer GM, Ford - Won't Pledge to Buy American
Sen. Sherrod Brown (D, OH) asking GM, Ford, and Crysler,
'Will you buy American if we give you taxpayer dollars?'
"Scoop" Independent News
(Wash. DC) The CEO's of General Motors, Ford, and Chrysler were in the Capitol Thursday asking for $34 billion dollars to stay in business for the next few months. The three companies are now at the top of the corporate "dead pool," with a bankruptcy for GM possible by the end of the year. They appeared before the Senate Committee o Banking, Housing, and Urban Affairs.
Senator Sherrod Brown (D, OH) provided one of the most telling moments when he asked the three chiefs to commit to continued purchasing from United States automotive suppliers at the same or increased levels in return for federal bailout funds.
Suppliers for GM, Ford and Chrysler are located across the country. A GM bankruptcy would resonate through the aftermarket, original equipment (for new cars), and heavy duty parts suppliers creating broad based economic hardship.
The following transcription shows clearly that both GM and Ford failed to commit in any way to Brown's goal - a firm commitment to buy American if they receive taxpayer funds.
U.S. Senate Committee on Banking, Housing, and Urban Affairs, Dec. 4, 2008 (311-313)
Sen. Brown: "Auto suppliers, of course, as auto companies, have a lot to worry about these days. One of the concerns is that tax payer dollars will go into this program and their concern is that they not be used to off shore American supplier jobs ... I'd like just a yes or no on each of the three CEOs, for you to commit and pledge to maintain or increase your US value added content ...if you receive taxpayer support both for your companies directly that you will increase to increase or keep the same on the value added content and on your suppliers that you use if you'd commit to that if you receive tax dollars."
G. Richard Wagoner (GM): "I have to look at the data. Certainly our intention ... we're finding that the U.S. suppliers are more competitive today in a lot of areas than they've been in years. I feel like that will be the direction but I'd like to look at the data and respond to you if I could."
Where's the commitment to anything other than a "look at the data" and a request to respond later on? There is no commitment to buy American. He was headed in that direction when he said, "Certainly our intention" but then he caught himself and answered with a platitude. On the verge of bankruptcy or worse, GM, the major beneficiary of the bailout, is telling the Senate and the citizens, 'Gee, I can't answer that question right now.' No promise will follow unless the data looks right. You'd think that he would know the data, particularly for this hearing.
Alan Mulally (Ford): 'The vast majority of our research and development is lead out of the United States. And we have no plans to change that.'
Ford's CEO must have been distracted when Sen. Brown asked his question.
Sen. Brown: "Not just research and development. I'm talking about more than just research & development. I'm talking about everything you do. The concern that I hear from so many people because they've watched what happened to the banks; they watched money go for all kinds of purposes, including buying other banks. Lets put that aside.
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by Henry M. Brown
$9.95
Number of pages: 19
Publisher: Florida Bar
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Mr. Collins...
They are not American companies anymore. Not for a long time. We are not a American country (economically speaking) anymore. The fact that the big three are coming to our congress for our money to protect their interests which is not in our interest, is showing us what their perspective and intent is. Corporate personhood vs. the people. We as a people are being dupped into saving something we believe in but for which, they have no interest in being a part of. I would argue the vast majority of our elected servants do not either. America is being parted out in front of our eyes. As it looks and as it is, they'll get our money. Look in the mirror. peace by mikel paul (16 articles, 1 quicklinks, 12 diaries, 639 comments [43 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 1:05:27 PM  (0+)
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Reply: mike paul, we don't disagree
They are not U.S. companies, they're poorly managed businesses that have blown every opportunity to do well with the best auto market in the world ... and they've blown it every time. These executives should be fired for pure ineptness, as the financial executives responsible for much bigger catastrophes should have been dumped. This is one instance where something can be done to punish the management team. There will be no censure and no removal, just a hand over of funds. At the same time and at this time, crashing the U.S. econonmy, which is risked by the sorry behavior of GM in particular, would hurt too many people. Interim funding will allow the new administration to start off with something other than a panic and even more massive unemployment, which is woefully understated. by Michael Collins (146 articles, 23 quicklinks, 8 diaries, 557 comments [58 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 11:06:05 PM (0+)
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GM, Ford....
Michael Moore pointed out that the first line in their plan to save the auto industry was to fire 20,000 workers. What government would buy a plan that sets out to fire 20,000 citizens? These executives are morons. Don't give them money. At its present price, GM cans be BOUGHT for $3 billion. Buy it and put some non-business school person in charge. Martha Stewart? Garrison Keilor? by Walter Ebmeyer (0 articles, 0 quicklinks, 0 diaries, 3 comments) on Friday, Dec 5, 2008 at 2:35:48 PM (0+)
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Reply: thanks Mr. Collins
and good points in Mr. Ebermyer's comment; if these overpaid corporate anti-American executives can't manage their own business (and they haven't), buy it cheap and put people in charge who will use the auto industry to serve the public interest. We need massive investment in green, renewable, sustainable infrastructure and technology by Better World Order (4 articles, 575 quicklinks, 41 diaries, 1117 comments [67 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 4:14:11 PM (0+)
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Reply: Green energy, infrastructure
You're welcome! And you're so right. The potential for quick adaptations of recent solar breakthroughs, deployment of massive wind based sources, and even geo thermal for homes is massive. It doesn't even take much imagination to figure this out. The return on investment offers a transformation from a society of waste and refuse to one of productivity and health. What a concept and think of all the jobs repair and building based on increasingly clean energy. It's about time. by Michael Collins (146 articles, 23 quicklinks, 8 diaries, 557 comments [58 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 11:10:22 PM (0+)
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Bailout...
The automakers all complain of legacy costs per vehicle. With the reduced volume that they are about to experience, that number is about to skyrocket. Bailing them out does nothing to increase sales or to rid them of the oceans of cars currently unsold. Their pension plans are all rapidly becoming underfunded and are soon to be dumped in the governments lap. Bailing them out only forestalls the inevitable. Increased American content in their cars should be a prerequisite to any help. by Matthew Peters (0 articles, 0 quicklinks, 2 diaries, 178 comments [7 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 2:44:11 PM (0+)
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Maybe They'd Agree to Buy American...
... if all of US would. (grin) by Richmond Shreve (42 articles, 103 quicklinks, 17 diaries, 209 comments [31 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 3:47:40 PM (0+)
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They WANT to fail
They will appear to be dolts and refuse to do much, in the hopes of Congress refusing.... THEY WANT TO BREAK THE UNIONS.... Once and for all. The way to do this is file bankruptcy and re-organize. There is no doubt that the car companies are really part of a larger "group"; a "faction". And this faction has been interested in doing its best to kill-off the power of Unions and workers' rights... And to seriously weaken the Middle Class. The same faction has also worked hard to insure that we burn as much gasoline as humanly possible.... One hundred years ago, the Ford Model T got 28 MPG . Today, in 2008, the average mileage of new cars is 26 MPG. GM, Ford, and Chrysler all are sitting on patents that would dramatically raise mileage. They are in bed with the oil companies, everyone knows it, and it is time that this connection be carefully investigated. Such an unholy alliance is no doubt in violation of Anti-trust laws, if not Racketeering. by Steve Windisch (jibbguy) (17 articles, 0 quicklinks, 5 diaries, 390 comments [107 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 4:03:28 PM (0+)
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Reply: That's a very reasonable inference
from the replies of GM and Ford CEO's - very casual, obviously decepetive, disrespectful of the process. They've got Chapter 11 written all over them. Breaking unions is the Holy Grail of these people. They've had their way for too long. The non union middle and upper middle class needs to learn where their benefits and retirement programs came from. by Michael Collins (146 articles, 23 quicklinks, 8 diaries, 557 comments [58 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 11:14:25 PM (0+)
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Nationalize, then sell them to China
Make China promise to build the cars here, with American labor, and existing wages. Put a tariff on all imported cars to equal the international labor playing field, to maintain our standard of living. If Toyota and Nissan and Mercedes are hurting for customers, how does GM, Ford and Chrysler "conjure up" new customers? by David Hastings (0 articles, 0 quicklinks, 0 diaries, 116 comments [5 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 5:19:17 PM (0+)
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Interesting, no?
If they won't support the US and the American worker, let them go get their money from the countries they have outsourced to. Bailing them out presupposes that the overall economy will recover and soon, that people will have disposable income to spend on vehicles right away, that the credit crunch is no longer a problem, mortgages and homes are safe, and that people actually want to buy the crap they produce. A bailout of this industry is now only throwing good money after bad. They made their bed, now let them lie in it. We can let them collapse and move in quickly and buy them out for pennies on the dollar, then spend the time and money to retool for green vehicles. We could keep workers on to retool and run the operation. Those poor downtrodden corporate execs can then fly their teeny tiny little corporate jets to Cancun and weep their little hearts out in the warm sun of retirement. by Jack Harrington (0 articles, 0 quicklinks, 0 diaries, 680 comments [72 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 6:28:12 PM (0+)
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Big three
Maybe the government should buy the big three and run a national all American auto company. Many experts will give reasons why this will not work and how private enterprise is much more creative, cost effective and able to meet consumers needs etc. etc. Are they right? I would like to see first hand. by Gary Denson (2 articles, 0 quicklinks, 1 diaries, 283 comments) on Friday, Dec 5, 2008 at 7:25:39 PM (0+)
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buy out, sell out
If American taxpayers are going to bail out the auto industry they need to nationalize the industry. Sell it to the autoworkers. Let the autoworkers build green cars according to specs established by automotive engineers and designers. Lets build a couple of real good cars. The ceo's are disgusting non productive hustlers. Lets give them a golden parachute that doesn't open. Like the "Pinto" they gave us. by robert braunstein (69 articles, 0 quicklinks, 23 diaries, 207 comments [49 recommended, 1 rejected]) on Saturday, Dec 6, 2008 at 9:45:59 AM (0+)
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