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Changes for the US Auto industry March 31, 2009

Posted by @Karen_Fu in change, Economy.
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Making a very quick post on the topic. I was listening to the news and this piece of news was just the one piece of news that send my head nodding. With this specific regard on the Auto Industry, I agree with President Obama hands on. But I do not think that a larger stimulus plan may be helpful. Well that is from a non-US citizen so it may be different. Here is his excerpt of his speech that has been just released. And I will append my thoughts about the Auto Industry that I replied some 4 months ago at LinkedIn.

President Obama’s speech excerpt [CNET]

I am absolutely committed to working with Congress and the auto companies to meet one goal: the United States of America will lead the world in building the next generation of clean cars,” Obama said. He noted that many American-made car companies, including GM, have made significant advances in producing fuel-efficient cars.

“Let me be clear: the United States government has no interest or intention of running GM. What we are interested in is giving GM an opportunity to finally make those much-needed changes that will let them emerge from this crisis a stronger and more competitive company,”

 

My reply to Edward Caulfield 4 months ago on LinkedIn posted 4 months ago in Change Management, Government Policy:

The concept allows for an interesting scenario. Instead of paying money to save GM, spend the same money on the GM employees (and probably those in the supply chain as well) who earn under $x00k (pick your favorite value for x) per year to retrain them in fields where the demand *currently* remains high – renewables. Key would be that the lowest paid workers would get the highest priority on retraining. I am curious to read your thoughts.

I have some questions here as an onlooker.
Under normal circumtances, I would have agreed to let these auto companies fail.But in this situation where it involves thousands of jobs at stake, would it be advisable to have a kind of contract in place like setting new guidelines for the failing companies and change the top level management people instead of allowing all of them to go bankrupt ?

I seem to see that a lot of people seem to favour either government bailout or let them fail. But why can’t it be a mix of both ?

I would have thought that keeping the auto companies are the National Pride of the Americans. To let them fail, seems to be too much especially so when it will make so many workers out of jobs. Though some of them may be taken back into the auto industry when the new Japanese firm sets a new manufacturing plant in the States, I feel that if I were an American and a policy maker, I would have gone in to revamp the management in the company to save a national brand and to save jobs.

I think its the people that needs changing.

2 cents from a foreigner.
Clarification added 4 months ago:
correction on this line where I said ‘see that a lot of people seem to favour either government bailout or let them fail. But why can’t it be a mix of both ? ‘ It should be why can’t there be a mix of government intervention and private sector management ?’

I posted the above reply 4 months ago

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Comments»

1. matt - March 31, 2009

This blog’s great!! Thanks :).

2. Karen - April 8, 2009

you’re welcome. I am still working on this site and haven’t got round to socialize online…


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