The Auto Companies Bailout

RIDICULOUS!! Just like the AIG and Wall Street, this is crazy. LET THEM FAIL or go into Bankruptcy. That is what it is for.....REORGANIZATION. Now for those of you who think that I just do not understand how the big guys work since most of my career has been helping the little guys, the principles are the same. They are out of touch with reality, they are in cahoots with the UAW and they think they are above the law (law of supply and demand). Rubbish. The principles of honesty, integrity, less is better and a living wage still apply.

Here is what should happen:

1. The regular, hourly employees make too much. Their wages are far higher than average America. Do not cut their wages but FREEZE them for at least three years. If the UAW won't go along, let the workers vote to keep their jobs or not.
2. Simultaneously, stop making cars so fast. Either slow the line down and/or work less hours. Keeping their jobs and benefits would be better than no job at all.
3. Reduce finished product inventories. Move cars around the dealers rather than continuing production. Make what sells. If people want particular cars or really big ones, get in line. Remember when you "ordered" a car and it was a big deal to order it and wait. It was fun. If someone does not want what is in inventory, order it OR find it at another place.
4. Eliminate about 5 layers of management, especially top management. Really. It appears that the guys at the top have forgotten who they work for. Because shareholders are so diluted today because of millions and millions of shares outstanding, the guys at the top do not have to really face the shareholders so they say "screw them". We will use their money to pay for our corporate jet.
5. For the next 3 to 5 years set the maximum pay for the top guy at say $1,000,000. Now, even if your house payment if $25,000 per month, you should be able to live on a million. Then set the maximum for any other officer at half that. Reduce Directors fees to say $5000 per meeting, etc.
6. Virtually eliminate perquisites. Come on. These are tough times. Perks are supposed to be for when things are great. No planes, trains and only cheap automobiles. No Chauffeurs UNLESS they are used to car pool I am serious. Figure out ways of doing ONLY the essentials.

Remember when Lee Iaccoca went to Congress for money? A whopping $1 Billion at the time. He took no salary, lived and acted frugally and made money after Chrysler became wildly profitable, had great new ideas and everyone in the company had learned to live on what the company could make. Eventually, everyone did fine and he paid back the money not on time, ahead of time. Now I know that the CEO"s of GM and Chrysler have both agreed to be paid $1 this year. However the CEO of Ford said his $9 million was "where is should be". Maybe but I doubt it. Remember, Ford went through tough times before GM and Chrysler (because Chrysler was being propped up by Daimler Benz).

Remember it is not $25 Billion they want. It is $50 Billion. They already have $25 Billion from the Department of Energy for re-tooling to Hybrids. They want ANOTHER $25 Billion. No way. Let them file for bankruptcy protection and see what the court requires them to do in order to reorganize. Just what we need is for government to determine how they succeed. Let me go up there and run Chrysler, they will be profitable next year!!!

What do you think?