Road Blogs by On Wheels Media

by Valerie Menard

After the public flogging that the Big 3, or rather, their CEOs received last week, one does have to wonder;

“What were they thinking?”

Clearly out of touch with the workers they professed to want to protect, the three appeared before Congress with one goal in mind, to bring back approval of a bridge loan of $25 billion to tide the companies through the current financial disaster that has put GM, and probably Chrysler too, on the brink of bankruptcy.

In all fairness, the gentlemen did not arrive at the table solely by their own hands. Yes, basing the profitability of their  business models on trucks and SUVs was clearly a flawed strategy, but let’s not forget the price gouging we’ve all received over the last few years from the petroleum industry that contributed to sagging SUV sales and left domestic automakers particularly vulnerable.

Watching their testimony on C-Span, each spoke earnestly about the impact the collapse of the auto industry would have, and the fact that an estimated three million jobs would be threatened should any of the three file for bankruptcy. They were not without attitudes, however. Alan Mullaly of Ford made it clear that his organization was not in desperate shape and had the liquidity to last through 2009, possibly 2010. He was there in a supportive role, mainly, but he did admit that $7-8 billion of the $25 billion was earmarked for Ford.

Bob Nardelli of Chrysler reiterated that Chrysler was not in a position to be precocious and would, agree to most any conditions, in order to secure the loan. When asked which of the three would adopt Lee Iacocca’s pledge  of taking $1 dollar for a salary until the company was profitable (when Chrysler secured its last government loan in 1979), only Nardelli said he would.

Ironically, possibly the most ill favored presentation was Wagoner’s. GM, perhaps in the worst position of the three, was represented by a boss who clearly felt demeaned by the nature of the task he was engaged to do. Wagoner, rather than demonstrating contrition,  seemed determined to maintain his posture (and GM’s) as the powerhouse of the industry. When one lawmaker pressed the three gentlemen to admit the $25 billion was only the first of more requests to come and to promise not to return with future requests, Wagoner snapped he’d be happy to if Congress could promise the economy would never reach this level again.

And while the drama may be entertaining, it detracts from the bigger issue. We need our domestic automakers to survive, but we also need them to recognize they have failed, in critical ways, and that a new, greener day has come.

President-elect Obama has already signaled his willingness to help and many Democratic congressmen also seemed amenable, but there will be no blank checks issued. However, when Citi Group can collect $20 billion over the weekend, without so much as a hearing, the perception of a double standard has grown stronger.

Do we really just care about white-collar workers in this country? Do we really want to build an underpaid, unprotected, lower class in order to destroy unions? How quickly we forget that without unions, workers today would still suffer injuries and inhumane working conditions. What’s so offensive about getting a decent paycheck, without having gone to college, so that you might at least be able to afford to send your children there?

The double standard given the financial industry, guilty of the same critically bad decision making, and (arguably singularly responsible for the entire situation in the first place) also needs to be addressed, but first, let’s save our auto industry.

As a person of color, I can appreciate the outreach efforts these companies have made into my community. Ford, in particular, has supported the arts at a level that’s unprecedented in the industry. The Alameda Museum in San Antonio, for example, bears the Ford logo thanks to the $6.9 million the company contributed for bricks and mortar to build it.

Yes, arriving at the hearings in private jets was a boneheaded move, and yes, regular folks who had failed so miserably at such a critical juncture might be asked to resign, but this discussion won’t resolve the crisis. The integrity or common sense of these CEOs should not be the focus of this debate. Saving the last vital manufacturing jobs in this country is much more important, with or without the current CEOs.

The U.S. cannot allow the American auto industry to close, nor allow it to fall into Chapter 11 bankruptcy as so many Republican lawmakers have cavalierly suggested. At the hearings, Wagoner quoted a study that said that 85 percent of consumers surveyed said they would not purchase a vehicle from a company in bankruptcy.

Unfortunately, the big three CEOs will have to return to ask again. This time, they better show up with a solid plan, and it might not hurt to get in their most fuel efficient vehicles and drive to D.C. if for no ther reason to score some good PR, OK?