GM/Chrysler And Detroit Bias

BlogHer Original Post

Wednesday "Dr. Ed Montgomery, the White House Director of Recovery for Auto Communities and Workers, will visit Michigan to discuss the President’s support of a strong American auto industry and the President’s Auto Task Force initiative to support and revitalize auto industry workers and communities." - Office of the Press Secretary, the White House

There is no laughing in Michigan this April Fools, no jokes, and no elbow-to-the-rib chuckle.

Instead the new Car Czar will head to the heart of the problem and begin his task. But where's the Bank Czar? Hmmmm.

President Obama is giving General Motors 60 days to come up with a more aggressive plan to cut costs and debt. Chrysler is only getting half that time to work out a combination with Italian automaker Fiat. If they fail, the government will force them into bankruptcy court. - CNNMoney.com

According to the same article, "Bankruptcy would not be the end of the drain on federal dollars. In fact, it could mean an even greater cost to taxpayers.

There is widespread agreement that the companies would need more financing to fund their operations during a bankruptcy than the $21.6 billion they are asking for from the government to stay out of bankruptcy court. GM has estimated that it would need $45 billion in additional federal help for even a quick trip in and out of bankruptcy."

The President's plan also came with the ousting of GM CEO Rick Wagoner.

Firedoglake's Jane Hamsher takes on the GM/Chrysler question on MSNBC, and exposes the real Detroit bias.

Michigan Gov. Jennifer Granholm is clearly wondering herself-


Visit msnbc.com for Breaking News

The word on the street is a good CEO kick in the pants is just what Americans may need to get behind the plan to save the Auto Industry. After all we hate all things that seem irresponsible, right?

For example, a recent story on "free cars and gas" for GM employees. Of course those in the trenches know better.

Sarah A. Webster at the Detroit Free Press writes,

"Sometimes what looks like a perk is just not a perk. Every corporate jet does not represent excess.

Nor does every “free” car from Detroit’s automakers.

Lots of companies provide discounts on their core product as part of their compensation for workers.

The newspaper where I work gives me “free” newspapers at work. Employees of airlines, I’m told, also get “free” flights. Toyota Motor Corp. told me that it also provides free car insurance for employees who lease one of their vehicles, at discount.

And sometimes, well, things that look like perks are just something else altogether — like a test program."

It's the Detroit Bias. People love to hate Detroit and seem to go out of their way to find fault.

And once they get past the Detroit bias, there is the large divide between progressives and conservatives to tackle. Where one side yells Bailout! While the other yells LOAN! Where one side favors helping, while the other prefers a market correction via survival of the fittest.

The mere mention of government involvement in business sends a ripple through many already paranoid conservatives and independents. The ones that prefer doing nothing while jobs, homes, and lives are ruined.

Many of us see this as priority on their part. It's more important to save their dogma than real people.

Never mind that GM and Chrysler came begging the government and agreed to terms. Never mind there needs to be accountability for those terms. Never mind these same people were calling for CEO heads to roll months ago. Never mind we don't actually function in a true free market and therefor our solutions can't be simply free market solutions...

No, they are stuck on the idea that our government can only function in one way, and any move off that path will send us right into some Marxist/Socialist/Communist hell.

Former GOP presidential candidate Mitt Romney is a bit more understanding of the Administration's decisions

Embedded video from CNN Video

So where does that leave Detroit? And the great state of Michigan?

With a President making an example of an easy-target CEO. A public beheading in the square to satisfy the chanting mob. The buying of more time for all parties involved.

With a large swath of voters angry the government is even THERE, demanding cities and counties and a state die a slow death while we all watch. Because it's the American way.

With two real options: continued government help or bankruptcy, which we now know will cost more than the help.

And, without argument from anyone, a huge mess.

Contributing Editor Erin Kotecki Vest also blogs at QueenofSpainblog

ADD A COMMENT

In order to comment on BlogHer.com, you'll need to be logged in. You'll be given the option to log in or create an account when you publish your comment. If you do not log in or create an account, your comment will not be displayed.

Menu