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Will America really be better off?
I am a Chevrolet dealer based in a small town outside of Saint Louis Missouri. We sell and service Chevrolet cars, trucks and SUVs. Our small business directly supports 56 families and does business with over 85 different suppliers in my local area. We no doubt have a lot at risk as our congress debates the Automotive “bail out”. Many of my counterparts have emailed, called or written to their congressmen asking them to support a comprehensive plan to help our manufacturers through this world wide financial crisis. Unfortunately, I do not think the "lame duck congress" is listening. The divisive politics of Washington are still in place and, while there is hope it will change with the new administration, GM’s loan request has drummed up a storm of past criticisms of the company. I read the blogs of Americans that say "good riddance" to GM because GM negotiated poorly with the UAW, they relied on big trucks and SUVs and they have terrible quality. Many will not even buy a GM car because they drove the 1984 Eurosport with the paint peeling off while driving down the highway. I get it. I drove one of those; I know what they are talking about.
Now is not the time to dwell on the past. Now is the time to assess (accurately) the present and plan for the future.
Five years ago I joined the family business after a successful tenure in the computer world and was surprised to see a completely different GM. Chevrolet cars have been selling well compared to the market and the quality is actually fantastic. I can barely keep the Malibu on the lot (or the Cobalt and Silverado) and needless to say, our customers that we have invited back into the Chevrolet fold are very happy. I look at the Traverse, the Malibu, the Volt , the Camaro, the Equinox and the Cruze and am excited to be a GM dealer. The future looks fantastic.
GM has transitioned itself. And while I do not always agree with GM management, they have made tremendous strides under very onerous conditions. Contracts that were negotiated years ago that pay workers even when they do not work or when the market kills a product. Because of these agreements, the closing or transition of plants are either cost prohibitive or impossible. Healthcare costs have skyrocketed in the past 5 years and how can we forget the "oil" crisis of 2008. And please do not get me started regarding our trade agreements with Japan and Korea. Yes, those agreements that allow the penetration of our market but provides a tariff barrier to enter theirs....hmmm.
Just how many bullets can get fired at a management team during a critical transition period?
Let's say GM files for protection. What happens? They spin off a few brands, millions of jobs are lost, hundreds of thousands of companies, including media outlets (and print), suppliers, NASCAR and restaurants will also file for protection or simply go out of business. Yes, GM will be free from those nasty UAW contracts and the burden of the past 100 years, but will America really be better off?
Clearly, in our society bankruptcy protection works. It gives a company time to restructure without the pressure. So, GM is reborn as a smaller leaner more competitive company in one form or another. Surely, Ford and Chrysler will follow suit; they will have to. They would not be able to compete with the legacy cost around their neck. Again, will America really be better off?
We saved Wall Street because we wanted to eliminate the chance of a financial meltdown while we pay the CEO of AIG how much? The people we vote for and put our trust in have saved the Wall Street machine, but when it comes to saving 3 million American jobs and our manufacturing infrastructure, they are debating? Who saved America during WWII with an infrastructure to manufacture the machines to win the war? Who drove wages and job opportunity for America after WWII? GM, Ford and Chrysler. Who will be there for America the next time, Kia? Toyota? Tata?
We are one of the lucky ones. We retooled our business, moved to a new location, invested in the Chevrolet image program in the past three years. We have seen our Chevrolet business grow 50% year over year in this tough environment. Will our hard work matter if GM goes bankrupt? I pray for all of us who depend on GM. I want our representatives in Congress to focus on the bright future and not be blinded by the past.
I urge you to share this information with your readers. Go to www.gmfactsandfiction.com.
Sincerely,
Brad M. Sowers
Dealer for Jim Butler Chevrolet Fenton Missouri
bradmsowers@yahoo.com
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