Posts Tagged ‘GM’

Keep It Made In America!

October 27th, 2011

Keep It Made In America is a rallying cry being heard across 34 cities as the Alliance for American Manufacturing kicks off a tour across the country promoting Made In America and especially the impact of auto manufacturers going bankrupt.

A staggering 7.2 million paychecks rely on the American car manufacturers alone – more than many countries pay their entire population and the knock on effect on local economies of even small scale lay offs is highly significant. Bowling Green, KY and 200 workers at a local Corvette location are waiting to hear if GM will file for bankruptcy – the effect on the families involved is bad enough but the effect on the local economy of another 200 pay checks not being spent in grocery stores, malls, home improvements and the rest is just another hard nail being driven into smaller, localized economies already struggling with their own issues.

We have to keep positive – Chrysler has already filed for bankruptcy and if GM does, another wave of lay offs are going to happen BUT, and it is a HUGE BUT – perhaps this is what we need to do to get ourselves out of the mess and back on track fast!

The takeover of Chrysler by Fiat will introduce US manufacturers and suppliers to the small car technology that has made Fiat into such a giant around the world with a range of vehicles which are, well to be blunt, very small. Certainly very small compared to the US market!

Small may not suit the US consumer so well, but the technology which produces extremely high gas mileage certainly will and with the economies of scale such a merger is going to produce, prices for greener vehicles will fall (Japan indicates this right now with the new Prius hybrid enjoying 40,000 advance orders for this month alone) and the sooner we get American workers back on the production lines and putting their pay checks back into local economies.

March 30th – President Obama Makes Announcement on GM/Chrysler

September 15th, 2011

President Obama made a much awaited announcement yesterday on the Hill regarding the future of GM and Chrysler.

GM has had its plans and strategies thrown back with the government initiating much greater concessions from the company including the current CEO, Rick Wagoner, to step aside in favor of Frederick “Fritz” Henderson. In a move designed to allay the fears of potential buyers the US government will also from Monday back the manufacturers warranties on the vehicles it sells but it is clear the US government feels GM has something worth salvaging and has agreed another 60 days of working capital financing will be made available.

Chrysler is a much more troubled child with serious financial entanglements, however the US government is again stepping to help with the potential sale of the company to Fiat, the Italian car giant. President Obama announced the provision of another $6 billion to the car giant which is contingent on finding a buyer whether it be Fiat or another potential partner.

The announcement yesterday is very interesting for the comments made by the President on the issues not directly at hand with the survival of these two giants – GM in particular came in for serious mention when President Obama said,

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.

Now if the administration is as serious as it sounds on delivering fuel efficient green car technology to the mass market then someone, somewhere will have to be around to produce the technology and manufacture the cars. The scale of the market in green cars is simply enormous and it makes a great deal of sense for USA, Inc to have a share in manufacturing these vehicles for the future instead of allowing the country to slip further into debt down the road by importing cars we could be making right here at home – but first we have to deal with the financial issues surrounding our automobile industry.

A serious reminder that green issues are just like any other – the money issue must be resolved first for everything else to follow on.