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Excellent Article from a Ford Dealer regarding the Big 3

Old 12-12-2008, 10:09 PM
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Default Excellent Article from a Ford Dealer regarding the Big 3

JUST so you know I stole this from another site!


Incredible editorial from a Ford Dealer in the Pittsburgh Region…well written "Letter to the Editor" from Elkins
Fordland. Please feel free to forward.



Editor:

As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right
between the eyes. The fate of our nation's economic survival is in the hands of some congressmen who are
completely out of touch and act without knowledge of an industry that affects almost every person in our nation.
The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of
millions of viewers.



Sen. Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you are the
dinosaur, with ideas stuck in the '70s, '80s and '90s. You and the uninformed journalist and senators that hold
onto myths that are not relevant in today's world.


When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold
Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in
the U.S. GM was the world's No. 1 automaker beating Toyota by 3,000 units.



When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford
makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial
quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers.


Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that beats the Accord. And for '09 Ford
introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the
Corolla and Chevy's Cobalt beats the Civic.



When you ask how many times are we going to bail them out you must be referring to 1980. The only Big Three
bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid.


When you criticize the Big Three for building so many pickups, surely you've noticed the attempts Toyota and
Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight
years Ford's F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see
the new '09 F-150 you'll agree this won't change soon.



Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford
alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel,
clean diesel, hybrids, plug in hybrids and hydrogen cars.


It's 2008 and the quality of the vehicles coming out of Detroit are once again the best in the world.
Perhaps Sen. Shelby isn't really that blind. Maybe he realizes the quality shift to American. Maybe it's the fact
that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is
more concerned about their continued growth than he is about the people of our country. Sen. Shelby's disdain for
"government subsidies" is very hypocritical. In the early '90s he was the driving force behind a $253 million
incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge
loan the Big Three is requesting will be paid back, Alabama's $180,000-plus per job was pure incentive. Sen.
Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation
because of lack of knowledge and lack of due diligence in making your opinions and decisions.


After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus emergency vehicles to the recovery
efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip!



We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently.
While the governments of other auto producing nations subsidize their automakers, our government may be ready to
force its demise. While our automakers have paid union wages, benefits and legacy debt, our Asian competitors
employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in
2010, many lawmakers think it's not enough.


Some point the blame to corporate management. I would like to speak of Ford Motor Co. The company has streamlined
by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product
is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality
and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally
and the best auto company management team in the business.


The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700
billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions
to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole
thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the
country's largest industry, there is obviously oppositions. But does it make sense to reward the culprits of the
problem with $700 billion unconditionally, and ignore the victims?


As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently
has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business
with. A Chapter 11 bankruptcy by any manufacture would cost retirees their health care and retirements. Chances
are GM would recover from Chapter 11 with a better business plan with much less expense. So who foots the bill if
GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt
goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent
of repayment.



So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is
definitely better for the taxpayers and the economy of our country.


So I'll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to
misinform the American public and turn them against one of the great industries that helped build this nation, I
must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits
for 1 million retirees, eliminate 2.5 million of our nation's jobs, lose the technology that will lead us in the
future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not
in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately?



Jim Jackson
Elkins
Old 12-12-2008, 10:21 PM
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Great editorial!!

If only I owned my own media conglomerate. I would have this stuff running 24/7 to counter all the bs and misinformation being driven into the heads of the American public.
Old 12-13-2008, 12:34 AM
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I'm quite proud to say my family buys strickly American... cept that time my mom bought a highlander, realized it was gutless, and gave it back in exchange for a GTP Grand Prix
Old 12-13-2008, 01:56 AM
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Best thing I have read in awhile. I HATE import nameplate cars. I never said they didn't make a good one. I just have no use for them.
I wish everyone in America could read this and feel like I do. Pride in America and what we can do.
Screw the Tree hugging honda, toyota driving folks who like to bash everything American.
Old 12-13-2008, 10:26 AM
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sweet article... now if people in power would actually read it...
Most people do not realize how long the supply chain is to build ONE vehicle! If you want a depression just let the big three go under. millions of jobs lost throughout different manufacturing sectors, losing one major manufacturing contract could put commpanies under, so the company who makes plastic door panels could also be producing other durable goods but with the loss of the one contract the whole commpanny folds... this is the "domino effect"
Old 12-13-2008, 10:45 AM
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Originally Posted by PONYEATER
sweet article... now if people in power would actually read it...
Most people do not realize how long the supply chain is to build ONE vehicle! If you want a depression just let the big three go under. millions of jobs lost throughout different manufacturing sectors, losing one major manufacturing contract could put commpanies under, so the company who makes plastic door panels could also be producing other durable goods but with the loss of the one contract the whole commpanny folds... this is the "domino effect"
Most people don't realize that if the big 3 fail the effects will transcend manufacturing related jobs and reach out to sectors that directly touch their day to day lives. For example how many of us visit automotive related chat, or blog websites like oh I don't.... LS1tech? I frequent half a dozen different boards myself and on a daily basis. Does anyone know where the funding for these boards comes from? Does anyone not think they they will be affected by a collapse of the big three as the aftermarket vendors that pay their bills slowly go under one by one as the market they supply parts to slowly dries up. Look at Greddy. Big name in the import scene that has filed for bankruptcy. Modding grocery getters just doesn't have the appeal that modding real performance cars has.

Ultimately I think we have become a nation of ignorant sheoples. To stupid to think for oursleves and make educated decisions so we rely on our "leaders" to make those decisions in our best interests which in fact are made in their best interests for personal gain.
Old 12-13-2008, 10:59 AM
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Gen 2 gen 4 and an 03 Impala

The Kia was bought used locally from an old woman.
Old 12-13-2008, 11:26 AM
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Very good article Ellis!
Old 12-13-2008, 11:50 AM
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Very good points everyone...Not to mention the affect that it would have on parts for the defense industry.
We need these guys. People want to live with there head in the sand.
Old 12-13-2008, 01:03 PM
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Wow that is a pretty good article. I sent it on to my family. They will get a kick out of it.
Old 12-13-2008, 01:51 PM
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Very well written and the one point he made that needs to change is the cost of the work force paid by the Big 3. The UAW needs to go!! No company should have to pay out the wages the way the Big 3 pay. If that mess was cleaned up this argument would not be going on.
Old 12-13-2008, 08:19 PM
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Originally Posted by smoke20
Very well written and the one point he made that needs to change is the cost of the work force paid by the Big 3. The UAW needs to go!! No company should have to pay out the wages the way the Big 3 pay. If that mess was cleaned up this argument would not be going on.
Actually If you did a little research you would find it is more then that. DO some real research and get to the bottom of the hole

Ever wonder how much it cost to keep up with what the fed and Califonia keep stuffing down the throat of the Big three?

Let say YOU sold a product. Some of the best around. Now lets say you were told it had to be "X" amout more Efficent AND "Y" amount safer by this time next year or you could no longer sell your product with out HUGE penalty's. Now add to that the fact that there is NO avalable way to do it today or the short future so YOU have to sink huge amounts of your income into just getting ready to produce your product to meet the new standards(that there is no current technoligy for) just so you can sell your product next year.



NOW Imagine this happens to the Big three....every year......
Old 12-13-2008, 11:34 PM
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Originally Posted by TwoFast4Lv
Actually If you did a little research you would find it is more then that. DO some real research and get to the bottom of the hole

Ever wonder how much it cost to keep up with what the fed and Califonia keep stuffing down the throat of the Big three?

Let say YOU sold a product. Some of the best around. Now lets say you were told it had to be "X" amout more Efficent AND "Y" amount safer by this time next year or you could no longer sell your product with out HUGE penalty's. Now add to that the fact that there is NO avalable way to do it today or the short future so YOU have to sink huge amounts of your income into just getting ready to produce your product to meet the new standards(that there is no current technoligy for) just so you can sell your product next year.


Imagine having to pay layed off workers the same amount of money they made prior to being layed off then they get the same raise as the employees
that still have a job along with all the bennies, it adds up. no doubt the




NOW Imagine this happens to the Big three....every year......
Imagine having to pay layed off workers the same amount of money they made prior to being layed off then they get the same raise as the employees
that still have a job along with all the bennies, it adds up. no doubt the smog rules have hurt the big three but all automakers in this country have the same rules not all automakers pay employees that are layed off.. the biggest expense for the Big 3 is their workforce,,, I did my research
Old 12-14-2008, 12:50 AM
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Not very good research there is so much more. I am not denying the UAW is going to have to make consesions but they are FAR from the root of the problem.
Old 12-14-2008, 01:45 AM
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Originally Posted by smoke20
Very well written and the one point he made that needs to change is the cost of the work force paid by the Big 3. The UAW needs to go!! No company should have to pay out the wages the way the Big 3 pay. If that mess was cleaned up this argument would not be going on.
Mr Nardelli agrees with Smoke20
.http://money.cnn.com/galleries/2007/fortune/0709/gallery.women_men_highest_pay.fortune/index.html

Chrysler reported a $2bn operating loss in the first quarter and is set to demand significant concessions from its workers. Mr Nardelli said he had met Ron Gettelfinger, the UAW president, for two hours and “had a great exchange with one another”.
Chrysler said it would stick to its recovery plan, including the pursuit of overseas carmaking partnerships and alliances. “We’re going to have laser focus on the execution of this strategy,” Mr Nardelli said at ceremonies to unveil the “new” Chrysler, now controlled by Cerberus Capital Management, the US private equity group
Old 12-14-2008, 09:12 AM
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That is a very good article!!! What i am getting sick and tired of is this. There is a good portion of people out there. (You know who you are!!!!) that want to point the entire blame at one sector. This problem has NOT been created overnight, Nor has it been created by just the UAW, or the BIG 3. The blame needs to be shared!!!! What needs to happen NOW, Is to move forward and fix the problem!!!!! Whether it be in the form of a Bailout, or Bancruptcy(Restructuring). Conncessions NEED to come from the UAW, As well as a new business model from the Big3. The only way for this to be successful, Is for both of these groups to work together and find common ground. This being, where the companies can be profitable, And the workers can have a decent wage and benefit package.
Old 12-14-2008, 10:33 AM
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Originally Posted by 99LSS1
That is a very good article!!! What i am getting sick and tired of is this. There is a good portion of people out there. (You know who you are!!!!) that want to point the entire blame at one sector. This problem has NOT been created overnight, Nor has it been created by just the UAW, or the BIG 3. The blame needs to be shared!!!! What needs to happen NOW, Is to move forward and fix the problem!!!!! Whether it be in the form of a Bailout, or Bancruptcy(Restructuring). Conncessions NEED to come from the UAW, As well as a new business model from the Big3. The only way for this to be successful, Is for both of these groups to work together and find common ground. This being, where the companies can be profitable, And the workers can have a decent wage and benefit package.

Couldnt have said it better. However when you encounter a problem you have to look at the issues that have the greatest impact. The Big 3 have over the last 3 years started restructuring and closing dealerships and plants in an attempt to controll cost. The one cost that has not been touched due to the UAW is workforce cost. Each time a plant is closed the Big 3 still pay wages to the layed off workers. That is dead money that could go into R&D or passed onto the buyer. Its why the Japanese makers in this country have lower overhead than the Big 3. I just brought up the biggest issue, I did not mean to come across that this is the only solution. However it is the biggest problem. Filing for bankrupcty would allow the Big 3 to get out from under the UAW and start a new workforce with workforce costs. Unfortunatley there are going to be cuts in the workforce and wages lost but it is better than losing the entire company due to strong arm tactics the UAW has used for years. Workers need protection from the company and that was the primary reason for union in the beginning. But now they are useless and take advantage of the company and are unwilling to bend to help resolve the issue.
Old 12-14-2008, 10:39 AM
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Yes indeed Doug.

But what scares me is that many in congress & sadly our country want to do NOTHING! Evidently we forgot our history lesson from 1930. This whole scenario is almost a carbon copy of "The Great Depression". No controls of Wall St, low interest loans, etc & the government decided to sit back & let capitalism take care of the problem. The result of course was not very pleasant.

You can blame Reagan, Clinton, Bush, Greenspan, the UAW.....it doesn't matter. We gotta fix it. Or go back to Hooverville & Soup Lines. The choices are clear, even GW gets it now.
Old 12-14-2008, 12:28 PM
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Originally Posted by WAHUSKER
Yes indeed Doug.

But what scares me is that many in congress & sadly our country want to do NOTHING! Evidently we forgot our history lesson from 1930. This whole scenario is almost a carbon copy of "The Great Depression". No controls of Wall St, low interest loans, etc & the government decided to sit back & let capitalism take care of the problem. The result of course was not very pleasant.

You can blame Reagan, Clinton, Bush, Greenspan, the UAW.....it doesn't matter. We gotta fix it. Or go back to Hooverville & Soup Lines. The choices are clear, even GW gets it now.
Right, blame whoever, but we need to get past that. Now we need to focus on solutions. I seem to remeber the auto industry being there for us during WWII, everyone is always like big deal and that was years ago.
Don't kid yourself, without them we are very vunerable.
We should be there for them now. We helped put them in this mess.
Time to get back out on top!
Old 12-14-2008, 12:31 PM
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No doubt the Unions have been a great part of the problem!!!! Being a Union member and a Non-Unoin member in the past I can see both sides. I can tell you this, My Local is not very strong. We have taken consessions over the last 8 years because of soaring health-care costs. But I can tell you we have in no way kept up with the Cost of Living. I don't know why GM or other Companies would be paying for layed off workers for more than a couple of months. Usually there is a clause in any Union Contract that will pay Severance to Employees who are layed off because af a Plant Closure. If the Automakers are paying for any more than this it is of no fault but their own. It is very clear that these companies would be better off without the Unions, But could the workersw say the same thing. I do believe that if the UAW was to be faced with taking consessions or have no jobs at all they would pick the former. I just hope everyone realizes, before it is to late, That losing all those jobs would mean complete DEVASTATION for the American, not to mention the Global Economy.

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