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The dinosaurs of the auto industry fought and delayed every single auto safety feature.
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The dinosaurs of the auto industry fought increased CAFE (Corporate Average Fuel Economy) standards.
.The dinosaurs of the auto industry invest heavily in attorneys to postpone and delay recalling vehicles for product defects by forcing Class Action Lawsuits and court delays.
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By the time a ruling is attained, the majority of the specific vehicle are off the road, frequently due to the defect addressed in the suit or some having killed vehicle occupants in accidents caused by the defect.
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Ford has been at the top of its class in continuing to produce defective engines, seat belts, airbags, police cruisers with explosive gas tanks and much else. And they continue doing so instead of correcting the known manufacturing defects.
Ford has been at the top of its class in continuing to produce defective engines, seat belts, airbags, police cruisers with explosive gas tanks and much else. And they continue doing so instead of correcting the known manufacturing defects.
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The US Auto Giants focused on the next quarter's profits to the exclusion of long term planning and the need for producing a safe, reliable, fuel efficient or alternative fuel vehicle. And in the Bush/Cheney Administration, they found friends who protected their poor business practices, shoddy products and defended their lobbying efforts. They thwarted efforts to produce more efficient vehicles and behaved like the bullies of the market they are and now want loans because of their own arrogance, incorrect market projections and mismanagement.
.The US Auto Giants focused on the next quarter's profits to the exclusion of long term planning and the need for producing a safe, reliable, fuel efficient or alternative fuel vehicle. And in the Bush/Cheney Administration, they found friends who protected their poor business practices, shoddy products and defended their lobbying efforts. They thwarted efforts to produce more efficient vehicles and behaved like the bullies of the market they are and now want loans because of their own arrogance, incorrect market projections and mismanagement.
Efforts to increase CAFE were met with not so veiled threats of contentious elections. in spite of widespread knowledge of Peak World Oil and Global Warming.
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The Auto Industry Giants could have chosen to lead the pack, but chose instead to fly their corporate jets, oblivious to the world and future market projections. The case might be made that money invested in lobbyists and attorneys might have funded the technology and engineering to innovate products for the post oil economy.
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The Center for Auto Safety offered (LINK). You can enter your vehicle and find out what complaints have been filed.
The Center for Auto Safety offered (LINK). You can enter your vehicle and find out what complaints have been filed.
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WIRED offered this as an out of touch Administration that failed to address the appropriate issues -
WIRED offered this as an out of touch Administration that failed to address the appropriate issues -
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President Bush and the heads of GM, Ford, and Chrysler pushed ethanol and flex-fuel vehicles as the best way to cut U.S. fuel consumption in a meeting at the White House. Ignoring his own call for higher fuel-efficiency standards, Bush praised the automakers for ramping up production on flex-fuel cars and trucks:
"That's a major technological breakthrough for the country," Bush said. "If you want to reduce gasoline usage like I believe we need to do so for national security reasons as well as for environmental concerns, the consumer has got to be in a position to make a rational choice."
.President Bush and the heads of GM, Ford, and Chrysler pushed ethanol and flex-fuel vehicles as the best way to cut U.S. fuel consumption in a meeting at the White House. Ignoring his own call for higher fuel-efficiency standards, Bush praised the automakers for ramping up production on flex-fuel cars and trucks:
"That's a major technological breakthrough for the country," Bush said. "If you want to reduce gasoline usage like I believe we need to do so for national security reasons as well as for environmental concerns, the consumer has got to be in a position to make a rational choice."
MSNBC
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At one time, Chevy sold a 3 cylinder Geo Metro that got 60 MPG, but they stopped because they weren't making enough profit on the vehicle that sold for ~ $5,000. The industry marketed, promoted and solely made available gas guzzlers in the US market, even as they made more fuel efficient vehicles overseas.
At one time, Chevy sold a 3 cylinder Geo Metro that got 60 MPG, but they stopped because they weren't making enough profit on the vehicle that sold for ~ $5,000. The industry marketed, promoted and solely made available gas guzzlers in the US market, even as they made more fuel efficient vehicles overseas.
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And now, in death throes, they need a bailout (in terms of loan guarantees) for their management failures.
.And now, in death throes, they need a bailout (in terms of loan guarantees) for their management failures.
Here and Now offered a discussion - Auto Industry Bailout
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This week, Congress began hearings on the Bailout. Maybe we need to preserve the industry because of the number of jobs it provides in a withering economy, but can we at least attach enough conditions so it doesn't become like Paulson's Piggy Bank? Can we ensure that management needs to change to produce vehicles that make sense?
Chrysler leaders get millions Automaker defends payouts amid looming bailout talks
As Detroit's crumbling auto industry asks Congress for a bailout, Chrysler is in the awkward position of paying about $30 million in retention bonuses to keep top executives while the company cuts thousands of jobs.
As Detroit's crumbling auto industry asks Congress for a bailout, Chrysler is in the awkward position of paying about $30 million in retention bonuses to keep top executives while the company cuts thousands of jobs.
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Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell the Chrysler unit. Nancy Rae, Chrysler executive vice president for human resources and communications, said the move made sense at the time to ensure potential buyers that key Chrysler executives would remain in place after a sale. She acknowledged that the bonuses could be seen as controversial now. "We all would be smarter if we knew what we know now back in February of '07," she said. "Probably a lot of different decisions would be made." Chief executives of Chrysler LLC, General Motors Corp. and Ford Motor Co. are expected to testify next week before a House committee on a proposal for $25 billion in low-cost government loans to help keep the companies afloat. Any aid is expected to come with limits on executive pay and bonuses. It is unclear whether those conditions would affect existing bonus plans -- Chrysler's was hatched around April 2007 -- or merely limit future bonuses and golden parachutes. Retention bonus plans are fairly common in volatile times and at troubled companies that are straining to attract and retain top talent. But they have been controversial in recent automotive industry bankruptcy cases involving suppliers Delphi Corp. of Troy and Toledo-based Dana Holding Corp. A 2005 change in U.S. bankruptcy laws forbade the payment of retention bonuses to executives just for staying at a company while it's in bankruptcy proceedings. Documents obtained by the Free Press show that at least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary mark of when private equity firm Cerberus Capital Management bought an 80.1% stake in Chrysler. Those promised the largest retention bonuses:
Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell the Chrysler unit. Nancy Rae, Chrysler executive vice president for human resources and communications, said the move made sense at the time to ensure potential buyers that key Chrysler executives would remain in place after a sale. She acknowledged that the bonuses could be seen as controversial now. "We all would be smarter if we knew what we know now back in February of '07," she said. "Probably a lot of different decisions would be made." Chief executives of Chrysler LLC, General Motors Corp. and Ford Motor Co. are expected to testify next week before a House committee on a proposal for $25 billion in low-cost government loans to help keep the companies afloat. Any aid is expected to come with limits on executive pay and bonuses. It is unclear whether those conditions would affect existing bonus plans -- Chrysler's was hatched around April 2007 -- or merely limit future bonuses and golden parachutes. Retention bonus plans are fairly common in volatile times and at troubled companies that are straining to attract and retain top talent. But they have been controversial in recent automotive industry bankruptcy cases involving suppliers Delphi Corp. of Troy and Toledo-based Dana Holding Corp. A 2005 change in U.S. bankruptcy laws forbade the payment of retention bonuses to executives just for staying at a company while it's in bankruptcy proceedings. Documents obtained by the Free Press show that at least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary mark of when private equity firm Cerberus Capital Management bought an 80.1% stake in Chrysler. Those promised the largest retention bonuses:
• Frank Ewasyshyn, executive vice president, manufacturing, $1.89 million.
• Frank Klegon, executive vice president, product development, $1.8 million.
• Rae, $1.66 million.
• Simon Boag, president, Mopar/global service and parts, $1.65 million.
• Steven Landry, executive vice president, North American sales, $1.63 million.
• Michael Manley, executive vice president, international sales, marketing and business development, $1.53 million.
The bonus sizes ranged from a high of Ewasyshyn's $1.89 million down to $200,000. The agreements provided for payments of 25% of the bonuses in February 2008 -- which were made on schedule -- and for the remaining 75% to be paid in August 2009. Promise of a smooth transition "Who are they going to work for?" he asked. "My feeling is they've run the companies into the ground."
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U.S. House Speaker Nancy Pelosi, D-Calif., said Congress will push next week to expand the nation's $700-billion bailout of the financial industry, called the Troubled Asset Relief Program, or TARP, to include automakers. The auto companies would face limits on executive pay and bans on so-called golden parachutes, which enrich departing executives, said Pelosi and U.S. Rep. Sander Levin, D-Mich. "We're very much interested in making sure there is shared effort and shared sacrifice," Levin told the Free Press.
U.S. House Speaker Nancy Pelosi, D-Calif., said Congress will push next week to expand the nation's $700-billion bailout of the financial industry, called the Troubled Asset Relief Program, or TARP, to include automakers. The auto companies would face limits on executive pay and bans on so-called golden parachutes, which enrich departing executives, said Pelosi and U.S. Rep. Sander Levin, D-Mich. "We're very much interested in making sure there is shared effort and shared sacrifice," Levin told the Free Press.
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Since February 2007, the automaker has announced the elimination of 34,000 jobs, including salaried, hourly and contract positions.
Since February 2007, the automaker has announced the elimination of 34,000 jobs, including salaried, hourly and contract positions.
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GM Collapse at $200 Billion May Exceed Bailout Plan
GM Collapse at $200 Billion May Exceed Bailout Plan
(Bloomberg) -- General Motors Corp., seeking a federal bailout as its cash dwindles, would cost the government as much as $200 billion should the biggest U.S. automaker be forced to liquidate, a forecasting firm estimated. A GM collapse would mean ``more aid to specific states like Michigan, Ohio, and Indiana, and more money into unemployment and extended benefits,''
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Rep. Frank suggested the need for the Auto Giants to return with a PLAN that might include eliminating the Corporate Jets.
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Congress rushed to pass legislation entrusting Treasury Secretary Paulson to follow the direction of Congress in stopping home foreclosures and watched as Paulson followed his own misguided plan that solved nothing.
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One public speaker suggested that if the automakers filed for bankruptcy, the courts would ensure that NEW management was installed and eliminate the excessive bonuses and contract buyouts.
1 comment:
My last new car was a lemon and I fought, wrote letters and invested too much time and energy getting my problems addresed. GM made no friend with me. I didn't get what I wanted which would have been greater mpg's. The car is too big and has more "performence" than I need. Zero to 60 doesnt do it. No blank checks for corporate jet flyers!
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