Romney: "Let Det. go bankrupt"

[LSFan00]

I found this take to be worth reading given his stature (within what's left of the GOP) and family background, which he even references. I was pretty disappointed at his logic/umbrella simplicity etc.

 

NY Times oped. Of course, being the Times, who knows if he even wrote it?

[MGallun]

I found this take to be worth reading given his stature (within what's left of the GOP) and family background, which he even references. I was pretty disappointed at his logic/umbrella simplicity etc.

 

NY Times oped. Of course, being the Times, who knows if he even wrote it?

 

 

they just dont get it... none of these can even file Ch 11 and live, they just wont, nobody except for a few really diehard or people well off wont buy from a bankrupt company, if the government wants them to claim bankruptcy they, afterwards need to come in a gurantee warranties amongst other things... if they just let them go and do it alone they will all die.. amazed, at how willing alot were willing to protect their money with AIG and fannnie etc, but now when it comes down to people and their jobs and healthcare they are like, meh, whatever... iam really amazed, these are not airlines, this is totally different, and a bunch of normal folks and peeps in washington are just out to lunch on this.. iam just, amanzed.. and very disturbed.

 

yes the automakers have made mistakes, guess what, everyone does, the government decided to cover its asses with the finance mistakes they made, but a ripple effect came from that and is hurting the auto companys and they dont care.. i voted for mccain, but really, now cant wait for obama to come in.

[MGallun]

they just dont get it... none of these can even file Ch 11 and live, they just wont, nobody except for a few really diehard or people well off wont buy from a bankrupt company, if the government wants them to claim bankruptcy they, afterwards need to come in a gurantee warranties amongst other things... if they just let them go and do it alone they will all die.. amazed, at how willing alot were willing to protect their money with AIG and fannnie etc, but now when it comes down to people and their jobs and healthcare they are like, meh, whatever... iam really amazed, these are not airlines, this is totally different, and a bunch of normal folks and peeps in washington are just out to lunch on this.. iam just, amanzed.. and very disturbed.

 

yes the automakers have made mistakes, guess what, everyone does, the government decided to cover its asses with the finance mistakes they made, but a ripple effect came from that and is hurting the auto companys and they dont care.. i voted for mccain, but really, now cant wait for obama to come in.

 

 

oh, and his Taurus and Avalon comparison is goofy, he obviously hasnt driven either, or maybe he just has a Avalon. lol... i think all senators - politicians should go to each auto dealers show room and drive their vehicles before making comments like that.

[RichardJensen]

I've prepared an annotated version for those of you interested in more than what a disconnected observer has to say:

 

IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

 

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.Perhaps, Mitt, you'd like to explain why the Ford hybrid sedans get dramatically (as in about 20%) better mileage than the Toyota hybrids. Perhaps you'd also like to explain how Ford's Fusion got ranked as higher quality than Toyota's Camry.

I love cars, American cars. I was born in Detroit, the son of an auto chief executive. In 1954, my dad, George Romney, was tapped to run American Motors when its president suddenly died. The company itself was on life support — banks were threatening to deal it a death blow. The stock collapsed. I watched Dad work to turn the company around — and years later at business school, they were still talking about it. From the lessons of that turnaround, and from my own experiences, I have several prescriptions for Detroit’s automakers.Nobody cares. My dad's a statistician. Does that make me qualified to talk about statistics?

 

First, their huge disadvantage in costs relative to foreign brands must be eliminated. That means new labor agreements to align pay and benefits to match those of workers at competitors like BMW, Honda, Nissan and Toyota. Furthermore, retiree benefits must be reduced so that the total burden per auto for domestic makers is not higher than that of foreign producers. Been there. Done that. Check out the press releases from last year's UAW contract.

 

That extra burden is estimated to be more than $2,000 per car. Think what that means: Ford, for example, needs to cut $2,000 worth of features and quality out of its Taurus to compete with Toyota’s Avalon. Of course the Avalon feels like a better product — it has $2,000 more put into it. Considering this disadvantage, Detroit has done a remarkable job of designing and engineering its cars. But if this cost penalty persists, any bailout will only delay the inevitable. Gee. You wouldn't happen to have a source for this, would you? Hmmm? No? Of course not. That's because this number is PURE FICTION.

 

Second, management as is must go. New faces should be recruited from unrelated industries — from companies widely respected for excellence in marketing, innovation, creativity and labor relations.You mean like Bob Nardelli from Home Depot? Besides, how many outsiders has Mulally recruited into Ford? Right. One guy running labor relations.

 

The new management must work with labor leaders to see that the enmity between labor and management comes to an end. This division is a holdover from the early years of the last century, when unions brought workers job security and better wages and benefits. But as Walter Reuther, the former head of the United Automobile Workers, said to my father, “Getting more and more pay for less and less work is a dead-end street.”Oh yeah. That's a GREAT idea. "Hi union. We're going to unilaterally cut your retiree pensions to the bone. But no hard feelings, eh? Let's work together on a brave new world, eh? Where our execs can take home multi-million dollar paychecks while you union grunts get zilch and retire with zilch. Hey. No hard feelings, eh?. Besides, Mitt obviously doesn't have clue number one about the difference between Ford's union relationship vs. GM & Chrysler.

 

You don’t have to look far for industries with unions that went down that road. Companies in the 21st century cannot perpetuate the destructive labor relations of the 20th. This will mean a new direction for the U.A.W., profit sharing or stock grants to all employees and a change in Big Three management culture.

 

The need for collaboration will mean accepting sanity in salaries and perks. At American Motors, my dad cut his pay and that of his executive team, he bought stock in the company, and he went out to factories to talk to workers directly. Get rid of the planes, the executive dining rooms — all the symbols that breed resentment among the hundreds of thousands who will also be sacrificing to keep the companies afloat. Uh, Gee, Mitt. Must've missed this one. As far as planes go, you tell me how YOU got around on your campaign trail? Right. And your reason for doing that? Right. Now go stuff your advice up your own corn chute.

 

Investments must be made for the future. No more focus on quarterly earnings or the kind of short-term stock appreciation that means quick riches for executives with options. Manage with an eye on cash flow, balance sheets and long-term appreciation. Invest in truly competitive products and innovative technologies — especially fuel-saving designs — that may not arrive for years. Starving research and development is like eating the seed corn.WHAT THE ?????? HOLY SMOKE MITT!!!! GET AN EVER LOVING CLUE. Thank you oh great Mitt, for coming down from the mountain and dispensing such priceless advice. TOO BAD IT'S ALREADY BEING DONE.

 

Just as important to the future of American carmakers is the sales force. When sales are down, you don’t want to lose the only people who can get them to grow. So don’t fire the best dealers, and don’t crush them with new financial or performance demands they can’t meet.Once again, Mitt, your grasp of the obvious is sufficient to astound even the most jaded observer. Why the very idea that a car company would use PERFORMANCE metrics in deciding which dealers to buy out? You truly are a king among men.

 

It is not wrong to ask for government help, but the automakers should come up with a win-win proposition. I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today. The research could be done at universities, at research labs and even through public-private collaboration. The federal government should also rectify the imbedded tax penalties that favor foreign carmakers. Oh, thanks for the tip. Your idea is that the GOVERNMENT should give UNIVERSITIES money to develop fuel efficient technology so that a company like Ford has to PAY royalties instead of RECEIVING royalties for INNOVATION. GEEEE. Thanks MITT.

 

But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost.

 

The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.OHHHHH YEAH. Great suggestion, Mitt, according to you the ONLY way to restructure is through BANKRUPTCY. Gee. Why don't you wire that tidbit to Alan Mulally, who's presiding over a pretty significant restructuring WITHOUT filing Ch. 11.

 

In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check.Oh. SO it's your idea that the best way for the Feds to help Detroit is by doing as little as possible? Gee. What a surprise.

[lfeg]

And this man wanted to be president. Only the dumb and dumbest for public office in the good old US of A.

[MTPwife]

So Mitt when you coming back home to Michigan for a visit? :gang: Sorry guys, I could'nt resist saying it. LOL

[Michael Reynolds]

And this man wanted to be president. Only the dumb and dumbest for public office in the good old US of A.

 

That's why folks barely voted for him.

 

For the life of me I can not understand how high profile individuals (with a staff none the less) ramble on without first doing a little bit of their homework, ensuring their familiarity with the issues at hand. Then again that's what American society has come to, no one stops to think.

[LSFan00]

When I read that earlier I had to repent for having held him out as the second best candidate this year.

 

"Better to remain silent and be thought a fool than to open your mouth and remove all doubt."

[Fordowner]

Thank you for the annotations. It was painful to read Mitt's op-ed. And your notes were on the money, plus since I know from this website that you have more knowledge of how the Big 3 operate and their history its good to know I'm not crazy for thinking some of this stuff.

[Sixt9coug]

I did support Romney for a while. He just lost every shred of my respect with that article. Screw him. Ask his dad about the good he did for AMC. How'd that work out?

 

What a dip.

[mlhm5]

I found this take to be worth reading given his stature (within what's left of the GOP) and family background, which he even references. I was pretty disappointed at his logic/umbrella simplicity etc.

 

NY Times oped. Of course, being the Times, who knows if he even wrote it?

 

Biggest flip flopper of all time. MI voted for Romney in the MI primary and then he said he would do everything to protect jobs.

 

""I hear people say, 'It's gone, those jobs are gone, transportation's gone, it's not coming back'... I'm going to fight for every single job," he told attendees. "I'm going to rebuild the industry. I'm going to take burdens off the back of the auto industry."

[RichardJensen]

(with a staff none the less)

He doesn't have staff. He has paid lackeys, yes-men, brown-nosers, sycophants, bootlicks, butt-kissers and apple polishers.

 

They ain't gonna correct a thing.

 

 

 

 

 

But what I love best is his justification for pontificating: "My dad ran AMC".

 

 

Gee. Maybe I'll go try and get a paper published on applied statistics because my dad does that for a living. Seriously. I have all the same qualifications Mitt does.

[Michael Reynolds]

He doesn't have staff. He has paid lackeys, yes-men, brown-nosers, sycophants, bootlicks, butt-kissers and apple polishers.

 

They ain't gonna correct a thing.

 

 

 

 

 

But what I love best is his justification for pontificating: "My dad ran AMC".

 

 

Gee. Maybe I'll go try and get a paper published on applied statistics because my dad does that for a living. Seriously. I have all the same qualifications Mitt does.

 

That's exactly what I'm getting at.

 

Anyhow it's funny how he speaks as if he is so informed and has been briefed on the issue in detail. Talk about grandstanding. I all but forgot about the useless schmuck.

[Joe771476]

Hypothetical question: If you were a Congressman and Japan/Japanese carmakers cartel told you to vote against the bailout and they'd send you a check for $1 million, what would YOU do? Just curious.

[papilgee4evaeva]

Biggest flip flopper of all time. MI voted for Romney in the MI primary and then he said he would do everything to protect jobs.

 

""I hear people say, 'It's gone, those jobs are gone, transportation's gone, it's not coming back'... I'm going to fight for every single job," he told attendees. "I'm going to rebuild the industry. I'm going to take burdens off the back of the auto industry."

 

I don't doubt you ( ), but... source?

[papilgee4evaeva]

Hypothetical question: If you were a Congressman and Japan/Japanese carmakers cartel told you to vote against the bailout and they'd send you a check for $1 million, what would YOU do? Just curious.

 

Would I have to vote first?

[calypsocoral]

I like this quote:

 

"Second, management as is must go. New faces should be recruited from unrelated industries — from companies widely respected for excellence in marketing, innovation, creativity and labor relations."

 

Ford has already done this with their hire of Alan Mullaly. And it seems to be working out fairly well, all things considered.

[jpd80]

Mitt likes the sound of his own voice and pretends to be an insider by association (his dad).

His Captain Obvious suggestions are full of uninformed criticisms based on zero access to

financial working of the big three.

 

The worst thing is we had to sift through this wind bag of an article to find nothing new.

[630land]

Alabama gave 'socialist' incentives to get foreign car plants, so yeah they get bribes.

[SVT_MAN]

I like this quote:

 

"Second, management as is must go. New faces should be recruited from unrelated industries — from companies widely respected for excellence in marketing, innovation, creativity and labor relations."

 

Ford has already done this with their hire of Alan Mullaly. And it seems to be working out fairly well, all things considered.

 

I think his point was that management's changes need to be more than just Mullaly. I actually disagree. I think Mulally has circled the wagons and righted Ford's ship in an amazingly short amount of time.

[630land]

I remeber all the Panther Mafia were saying "Vote for Bush" in 2004, and stuff like 'solid citizens drive Panthers' blah blah blah.... Careful what you wish for....

Edited November 21, 2008 by 630land

[papilgee4evaeva]

I like this quote:

 

"Second, management as is must go. New faces should be recruited from unrelated industries — from companies widely respected for excellence in marketing, innovation, creativity and labor relations."

 

Ford has already done this with their hire of Alan Mullaly. And it seems to be working out fairly well, all things considered.

 

... and on the other hand, we have Nardelli.

[jafo]

Mitt is right for the most part.

 

GM needs to reorganize to become a competitive company again.

 

Without bankruptcy

They cant effectively reduce excess brands and dealships

They cant get rid of the jobs bank

They cant get rid of bad work rules.

They cant start the new contract a year sooner

 

 

Without bankruptcy they are stuck in the same box, no matter who management. New management will be just as constrained on decision making as current management is.

 

 

GM makes good cars that people will want to buy, they just have far to much overhead to be profitable.

[RichardJensen]

Without bankruptcy

They cant effectively reduce excess brands and dealships

They cant get rid of the jobs bank

They cant get rid of bad work rules.

They cant start the new contract a year sooner

Oh really? Look at what Ford has done WITHOUT filing Ch. 11:

 

* Helped dealers consolidate: http://www.silive.com/news/index.ssf/2008/...rs_work_on.html

* Bought out workers: http://blog.mlive.com/annarbornews/2008/01...early_reti.html

* Negotiated new work rules: http://www.cleanmpg.com/forums/showthread.php?t=811

* Got the UAW to authorize mid-contract concessions: http://www.factoryrat.com/factoryrat/modul...topic&t=599

 

So but me no buts about what can and can't be done outside of bankruptcy.

 

Bankruptcy is the coward's way out.

[Versa-Tech]

Oh really? Look at what Ford has done WITHOUT filing Ch. 11:

 

* Helped dealers consolidate: http://www.silive.com/news/index.ssf/2008/...rs_work_on.html

* Bought out workers: http://blog.mlive.com/annarbornews/2008/01...early_reti.html

* Negotiated new work rules: http://www.cleanmpg.com/forums/showthread.php?t=811

* Got the UAW to authorize mid-contract concessions: http://www.factoryrat.com/factoryrat/modul...topic&t=599

 

So but me no buts about what can and can't be done outside of bankruptcy.

 

Bankruptcy is the coward's way out.

Word.