The Autoextremist commentary on the collapse of GM

Discussion in 'OT Driven' started by Jake!, Nov 12, 2008.

  1. Jake!

    Jake! Guest

    http://www.autoextremist.com/

    THE AUTOEXTREMIST

    November 12, 2008


    Tick, tick, tick...

    By Peter M. De Lorenzo

    Detroit. So it has come down to this for General Motors: 100 years of living, breathing American industrial and social history is on the precipice of total disaster, with the once-glittering corporate icon facing certain collapse if some sort of government financial aid package is not put together in the next 60 days.

    Think about that for a moment.

    The company that basically powered this nation through a century of progress and helped this country muster the strength to fight world wars - while contributing immeasurably to the fabric of America and the development of our vast middle class - is on the verge of filing bankruptcy.

    Unbeknownst to the legions of people out there in “fractured” America, the ones who fill the Internet with bile and who project such a level of viciousness and unbridled glee at the thought of the collapse of our domestic automobile industry as if it were – amazingly enough - some warped opportunity for celebration, there are countless towns, big and small, scattered all across this nation that have grown up with GM as their main employer and the main source of income for thousands of American families.

    I am absolutely convinced that the people who hate “Detroit” and want it to implode have not even the faintest of clues as to what it really means if it were allowed to happen. To those instant experts out there who are reveling at the thought of a major part of our country’s industrial fabric collapsing, I say be careful what you wish for - because if GM is allowed to fail, it will take the entire domestic auto industry down with it - meaning thousands of suppliers and dealers in towns making up a cross-section of America will go under too.

    For the record, there are around 14,000 domestic-oriented dealers in the U.S. employing approximately 740,000 people with a payroll of around $35 billion – that’s billion with a “B.” But that’s just the dealer side of the equation. When you add in the suppliers and all of the associated businesses that either directly or indirectly depend on Detroit for their livelihoods, we’re talking almost three million people who would be out of work in a matter of just a few months, adding up to a $150 billion loss in personal income.

    Let’s take California, for instance. Judging by our reader mail, there seems to be a large contingent of people out there who adamantly believe that “Detroit deserves to die” etc., etc., and that whatever happens “won’t affect me.” But GM and the domestic auto industry’s collapse will most definitely affect Californians as well. NUMMI, a joint operation between GM and Toyota (the Toyota Corolla, Toyota Tacoma and Pontiac Vibe are built there) and the only San Francisco Bay Area car factory, is already reducing shifts and may even shut down its Tacoma pickup truck line due to the burgeoning economic slowdown. One of our readers who understands the ramifications of a domestic industry collapse passed this interesting local news report along about NUMMI, which said, "There are tens of thousands of additional jobs on the line besides the 5,000 at NUMMI. There are over 1,000 suppliers in California that provide parts. They in turn employ 50,000 people."

    That’s just one factory. Now multiply that by the staggering totals involved if GM - which has 22 stamping plants and 26 powertrain plants in North America on top of its assembly facilities - and the rest of the domestic automobile industry is allowed to fail. The tentacles of this kind of cataclysmic disaster would spread throughout the nation like a virus that could not be contained.

    I really don’t know why it’s so easy for people out there to dismiss the collapse of the domestic automobile industry as being some minor event that won’t affect them in the least, because each person who is part of that figure of three million represents a real family and real human story, all across this nation. It’s the mom and pop diners, stores and peripheral neighborhood businesses that depend on the workers who toil at these factories and plants for their livelihoods too. There are towns all across America that would simply dry up and blow away if the local GM or supplier plant shut down. That’s not an exaggeration, that’s a simple fact.

    I have been vilified of late by numerous critics for shifting my commentary to a more political tone over this election year, but I don’t offer any apologies. This country is not only in the throes of a financial crisis, it’s in the throes of a fundamental identity crisis as well. We as a nation have been lulled into thinking that things will work out and that any unpleasantness headed our way will be mere speed bumps on our journey to becoming a state of perpetual consumer bliss.

    Well, it just doesn’t work that way, folks.

    We live in a global economy that isn’t big on history or what we as a nation once did or stood for. We have to compete, or else we will arrive at a point when our national future will transition from being one of destiny to one being dictated to us by a unsavory set of circumstances and interests not in line in the least with our hopes, our dreams or our thinking.

    In order to compete in this global economy we have to get smarter in our schools and with our educational policies. A high school graduation rate of 50-60 percent should be anathema in our inner cities instead of too often the rule. Remedial classes for kids entering college (who are not able to handle freshman classes) should become a thing of the past. And our teachers need to be compensated realistically and properly so more of our brightest people can sign up to help shape our kids’ futures.

    Even though we as a nation don’t seem to have the stomach for hard work and sacrifice any longer - hell, I’m not sure those words and their meanings are even in the lexicon of vast swaths of our population - we must get tougher in the midst of this global economy, and we have to steel ourselves for the kind of battles we’ll face. And that means shoring up our manufacturing and supporting our homegrown industries that are so intertwined with communities all across this still great nation. It also means that President elect Obama will not only be President of the United States, he will have to be CEO of America, Inc. too.

    And America Inc. not only needs to be rebuilt, it needs to be fortified with new determination because there are far too many talented and creative people in this nation who can do extraordinary things and we need to make the idea – the idea that we can innovate, create, build and manufacture things that are the envy of the world - cool again, and take pride in doing so as well.

    In short, this nation needs a wake-up call.

    Anyone who thinks this country will not be thrown into a full-blown depression if the domestic automobile industry is allowed to fail is simply kidding themselves. We are facing a perfect storm of events that could spell disaster if we as a nation don’t act and act fast. And it would take years for this country to recover too.

    As I’ve said repeatedly the time for all of the idyllic, “let the free market run its course” hand-wringing is over. It’s far too late for that. This country’s leadership needs to get these loans to GM and the rest of the domestic automobile industry in the next 60 days, or life as we’ve come to know it in this country – and I mean every part of this country – not just here in the Motor City, will be severely and unequivocally altered.

    That tick, tick, tick you hear?

    It's the time running out on the future of America.

    Let’s hope that what needs to get done will in fact get done, before it's too late.

    Thanks for listening.
     
  2. Traitor

    Traitor New Member

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    cliffs?

    bold the important parts?
     
  3. hash browns

    hash browns lolcathlon champion OT Supporter

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  4. Buzz Killington

    Buzz Killington nunc fortunatus sum

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    Cliffs: too big to fail.
     
  5. JP

    JP Active Member

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    I read all that shit by you :eek3:
     
  6. Dave

    Dave This is no motherfucking game OT Supporter

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    Its an ideal situation for the big 3. No matter how shitty they run their companies and no matter how much money they fuck off, they have the assurance that their government will not let them fail. America... FUCK YEAH
     
  7. sailingtothemoon

    sailingtothemoon OT Supporter

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    Yea they're all probably on break right now dicking around :o
     
  8. Operator7G

    Operator7G Active Member

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    FUCK, that couldn't have been any more well put. :bowdown:
     
  9. CitznFish

    CitznFish Don't live life by a single sentence OT Supporter

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    yeah, import loving idiots :rofl:

    Fucking americans should buy american. Traitors! All of you!@
     
  10. EverGreen

    EverGreen New Member

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    Why do these articles assume if one of the big three go under that everything that supports them will be bankrupt too?

    As if there is no need for cars/ As if there will not be a group of investors salivating at the thought of buying up one of the big three and running it like it should be run

    Lets not forget that the big three let themselves get fucked. They ignored the american consumer, they ignored labor practices, they are the ones that let the union run the goddam thing into the ground
     
  11. kaldurak

    kaldurak Gimme some sugar baby.

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    :werd:


    I like how the article simply states - throw the money at them, they need it.

    Without taking into account that they are just going to blow it all in a few months just like they do every time we throw money at them.
     
  12. EverGreen

    EverGreen New Member

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    Oh and :mb: :mb: :mb:

    Fat Lazy America saying help us we fucked up.

    How can we ignore the last 10+ years of inept managment, high prices, poor quality, and of course the air on entitlement.
     
  13. EverGreen

    EverGreen New Member

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    WE NEED FUCKING CARS.

    Market economics.. If someone isn't making cars... Someone will step up and start doing it. Its not like its going to be 2 years of people not being able to buy new cars or something...
     
  14. TriShield

    TriShield Super Moderator® Super Moderator

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    One of the best automotive sites even if I don't always agree with him.
     
  15. kaldurak

    kaldurak Gimme some sugar baby.

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    I know we need cars, I agree that someone would step in and buy one/all of them if the opportunity arose.


    I am just saying, the article is agree with throwing money into what exists now as a money pit.
     
  16. Formula-95

    Formula-95 2:32 PM 5-13-09 Never Forget, Hamburglar OT Supporter

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    I completely agree...im a huge believer and supporter in the big 3...even though i have a hatred for fords...i would not want to see them go down the tubes. They are America. If they fail, we fail. I don't see them pissing away all the money they have like AIG or any of the banks out there that have been in major trouble as of late...its just been a slump. when i get payed at the beginning of next month, im going to be putting some money down on GM and Ford stocks.
     
  17. AlkyHauler

    AlkyHauler Do you feel lucky punk? OT Supporter

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    article is correct that the shit storm that follows the collapse (if allowed) will be huge
     
  18. kaldurak

    kaldurak Gimme some sugar baby.

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    You mean not pissing it away again like last time, or the time before?
     
  19. TriShield

    TriShield Super Moderator® Super Moderator

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    This seems to be lost on practically everyone.
     
  20. TriShield

    TriShield Super Moderator® Super Moderator

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    But also, throwing money at the status quo can't happen.

    Letting the company completely evaporate would be disasterous, throwing money at it the way it is would put off the inevitable, loaning the company money after it has completely restructured would make the most sense.

    And we all know how the government always does what makes the most sense.
     
  21. AlkyHauler

    AlkyHauler Do you feel lucky punk? OT Supporter

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    the experts on OT think private investors will just "buy them up" and right the ship overnight :uh:
     
  22. Bad Karma

    Bad Karma Active Member

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    I find it funny how alot of people on OT are terrified of Obama's "socialism", but want to throw money at failing businesses.
     
  23. EverGreen

    EverGreen New Member

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    Ohhh no it will be not so good for awhile. Waa fucking waa. DONT RUN YOUR MEGACORPS INTO THE GROUND

    Fuck them. FUCK EM! Destroy and rebuild. You can't put bandages on a severed, diseased leg. CUT THAT BITCH OFF>
     
  24. kaldurak

    kaldurak Gimme some sugar baby.

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    and from your own thread, Gov't. oversight of automobiles scares the willies out of me.
     
  25. EverGreen

    EverGreen New Member

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    They will.

    If those companies are let to fail, they will be cheap. The unions will be dissolved. All of the fixed assets will not go anywhere. The plants will still be stocked with machines, there will be billions in inventory and parts to be used.

    All the hard shit is done. You just have to manage it.
     

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