Being organized and focused in your approach to presentations will help you get your point across much more effectively. The automakers request for an immediate $25 billion loan from the $700 billion financial bailout money isn't going well. Why? They don't appear to have their act together. Yes, GM took out a full-page ad in the Detroit dailies – and possibly other papers — detailing cost-cutting actions and including a Web site (gmfactsandfiction.com). That was a good move.
Yet, after reading today's Detroit News, it looks like they all have egg on their face. The CEOs are raking in millions in pay and bonuses, and took their private jets to Washington D.C.. Couldn't they have at least rode together in one private jet? This is not really the point though. My boyfriend works at a GM transmission plant. To his credit, he could articulate why GM needed a bridge loan far better than the head of the company.
My boyfriend rattled off all the jobs that would be affected. He noted that well-paid workers buy decent houses, send their kids to college, go out to eat, go on vacations and spend their money in ways that help other sectors of the economy. They are good consumers. Also, their solid health care benefits have helped southeast Michigan's health care system grow bigger and stronger. By paying autoworkers decent wages: $26 or more an hour vs. $15 an hour, it also brings up the pay of other non-union workers. Without an industrial base in the U.S., who will make the tanks if we need to go to war with a bigger power? Should we outsource that job to China? Perhaps the auto execs should have brought some of the autoworkers to D.C. with them to explain the need.
Interestingly, Maryann Keller, an auto analyst, noted that when lee Iacocca went to Washington D.C. in 1979 to save Chrysler from bankruptcy, he had a plan. He described how the loan would work for the company and how it would be paid back.
While I believe there is definitely a need for a bridge loan to the Big 3, the CEOs should have done their homework in articulating their plan. It starts with organization and focus. Leave out the arrogance.
Liz, I don't agree with all of your points but you are right-on with the fact that the CEOs didn't appear to have a plan for their Washington visit. If you don't have a plan for how to present your request for such a huge sum of money, it does not build confidence that you have a plan for how to spend it. My question is, who is advising these people? Any decent PR person would have advised against taking a corporate jet, just for starters. They also would have suggested taking "real" employees, not only those who make $21 million a year.
ReplyDeleteLiz,
ReplyDeleteOver the last few days I have been
appalled at the hatred directed towards the Big 3 and more so at the union. I am also amazed at the distortion of facts being spread by the media. Some of these "facts" could have easily been lifted from a newspaper written in 1970 but are hardly pertain to the auto industry today. Quality at the Big three is as good or better than most of the implants. Sure we read about every recall done by American car companies on the front page, but I scarcely heard mention of the Toyota recall that is largest ever in the auto business.
That $70 per hour cost per worker that the news agency loves to talk about includes legacy costs for every retiree and their family that are alive today. The auto industry and the UAW have been around for a long long time and there are a lot of retirees. The transplants haven't been around long enough to have these costs. Is it fair to berate the industry for taking care of their elderly?
One in ten US jobs are auto-related. The industry is asking for $25 billion dollars or 3.5% of
what was loaned to Wall Street with no strings attached...730 billion dollars loaned to bank to free up credit. Isn't credit exactly what the auto industry is asking for?
Bankruptcy is not an option. Would you buy a car with a 5 year
100,000 mile warranty from a company that is in bankruptcy? Not knowing if they will be there a year from now?
The UAW and the big 3 agreed to a historic contract that has already begun to save the companies money.
By 2010 those savings will surely help the industry show profits. But it won't be realized unless they get some help short term.
I would like to see some tax incentives to the public to encourage the purchase of American made cars. Give Americans incentive to drive our product, experience our quality, and help them realize there is a slew of vehicles that can save them money on gas.
Please get to know the facts.
Your family, friends, and neighbors
are counting on it.