Automakers wrecked their own industry Any bailout money should come with stipulations on salary and compensations for executives.
By the EDITORIAL BOARD of the Walla Walla Union-Bulletin
It's hard to feel sorry for the top executives of Detroit's Big Three automakers who drove their companies off a cliff and now want Congress to buy them a new ride.
Few industries have been so brazen in their efforts to avoid moving ahead with the innovations that might have been their salvation.
It didn't take a gypsy fortune teller to see that smaller, more efficient vehicles -- perhaps powered by something other than gasoline -- would be needed sooner rather than later.
Instead, the companies kept cranking out SUVs and trucks, fighting every effort to increase the overall mileage of their fleets by anything other than a token amount.
Dinosaurs found out too late that you evolve or become extinct. The Big Three are going to have to force that evolution quickly or they are going to go the way of the dinosaurs.
The future doesn't look bright. Ford CEO Alan Mulally thumbed his nose at a suggestion he emulate Lee Iacocca's move to cut his salary to $1 until the company returns to profitability.
Granted that's an extremely drastic measure, but he was at the wheel when the company crashed. Why should the workers be the ones who get run over?
The three automakers employ nearly a quarter-million workers. There are more than 730,000 others who produce the materials and parts for the cars. In addition, about 1 million more people work in dealerships nationwide. The salaries of these workers help keep retailers and others in business.
"What's good for General Motors is good for America." This quote -- actually it was a misquote -- from then-General Motors President Charles Wilson in 1955 came to symbolize the industry's arrogance.
It seems not much has changed. Three separate private jets were used to ferry the CEOs to Washington so they could testify on the need for a helping hand until they could transform their businesses.
"I mean, couldn't you all have downgraded to first class or jet-pooled or something to get here? It could have at least sent a message that you do get it," said Rep. Gary Ackerman, D-N.Y.
Until they do get it, they shouldn't get it (any bailout). And the funds should come with stipulations on salary and compensations for executives who to this point have shown they know how to wreck a company not run one.
These executives have had years and years to get their industry out of neutral. If they can't jumpstart it now, then the rubber should meet the road and new leadership should be put in place.
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007 wrote on Nov 28, 2008 7:58 PM:
" Um where is the outrage on the union perks? http://www.detnews.com/2005/autosinsider/0510/17/A01-351179.htm http://www.npr.org/templates/story/story.php?storyId=5185887 "
007 wrote on Nov 28, 2008 7:58 PM:
http://www.detnews.com/2005/autosinsider/0510/17/A01-351179.htm
http://www.npr.org/templates/story/story.php?storyId=5185887 "