| At 62 years old and as a former corporate executive | | | | inventory. The answer is no, the auto companies set |
| and consultant, I look at the demise of the auto industry | | | | exactly how much inventory they must hold and |
| full of emotion. Let's take General Motors for instance. | | | | they've been pushing it down their throats for years. |
| They once employed nearly 400,000 auto workers in | | | | Remember, it is always a leadership problem. |
| this country. When the latest round of leadership and | | | | The fourth problem is that you have to face your |
| the vaunted government 'auto task force' gets done, | | | | problems to change them. As a recovering alcoholic, I |
| they'll be employing less than 40,000 auto workers. | | | | learned I couldn't stop drinking and destroying my life |
| How could this be? Let's take a look and see what it | | | | until I looked in the mirror and said 'I am a drunk'. The |
| means to America. | | | | leaders of our once great industries in Detroit and |
| The first problem is leadership arrogance. I remember | | | | Akron have failed to do that to this day. They don't get |
| back in the seventies, under the leadership of Roger | | | | it. Flying to DC for Congressional hearings during an |
| Smith, GM suffered from an arrogance that was | | | | economic meltdown the likes of which we haven't |
| unequaled at the time. They were on top, led the world | | | | seen since the Great Depression on private jets. Why |
| with a market share over 50% and were convinced | | | | are we surprised at our current problems? They still |
| they were invincible. The Japanese made junk and | | | | think it is all about them, those few at the top. |
| were not a problem. | | | | I once heard Dr. Stephen Covey say, "You cannot talk |
| At the time, my wife and I were living in Akron, Ohio. | | | | yourself out of a problem you behaved your way into." |
| We'd get up every morning and walk out of the | | | | The leaders in the auto industry have been trying to |
| apartment to the aroma of fresh rubber, the smell of | | | | use smoke and mirrors to fix this problem for the past |
| jobs for most of Akron. They too suffered from the | | | | few decades. That leadership includes the unions too. |
| same leadership arrogance that has led us to our | | | | And who suffers? All of us really, but especially |
| current state of demise in this country. Here we have | | | | workers who are now entrenched in behaviors and |
| a problem of the leaders own arrogance blinding them | | | | lifestyles leaders gave them and now want to take |
| to the reality of the marketplace. The auto industry and | | | | away. It is sad we live in the greatest nation the world |
| the rubber industry are two peas in a bad pod. And | | | | has ever seen and we're saddled with leaders who |
| always remember, the problems we see here, in | | | | have forgotten what got us here, blinded by their |
| Congress and the White House are all leadership | | | | arrogance and success which has fueled their |
| problems. | | | | destructive greed. |
| The second problem is the unions. Detroit was fat | | | | The fifth problem we have is our government. And this |
| dumb and happy and since they were riding on top of | | | | isn't a problem of Republicans or Democrats; they're |
| the world, when all was well and everyone was | | | | both equally inept at this point. It is a problem of leaders |
| happy, they made deals no one could be expected to | | | | suffering from the same disease they blame on the |
| deliver on long term. In Akron, a guy I knew who | | | | unions ... the disease of me. We are led today by a |
| worked for Goodyear, a once proud company like | | | | group of people who are so far removed from the |
| GM, was twenty-five years old and worked in the | | | | everyday, up and down the street American, they |
| factory since high school. He used to take six months | | | | don't have a clue how we live or what we are going |
| off every year, a 'voluntary layoff' they called it, and | | | | through every day. |
| receive 90% of his pay for that time of 'not working'. It | | | | There is no possible way our founding fathers intended |
| doesn't take a rocket scientist to figure out that rocket | | | | for us to have professional politicians. There is no way |
| is going to run out of fuel. Here we have a leadership | | | | they intended our Congressional leadership to have |
| problem in the unions ... they priced themselves out of | | | | separate retirement programs from the rest of us, to |
| the market. | | | | vote in their own pay raises and sit in judgment of |
| The third problem is that over time, as corporate | | | | others while leading morally bankrupt lives and keep |
| America in the late eighties and nineties became | | | | their seat as public servants. Yet we are led by these |
| enamored with education over experience, Detroit lost | | | | people who are taking us down a rat hole our once |
| touch with the fact that, dealerships, the feet on the | | | | great nation will not return from. |
| street, sell cars. Fancy brochures, car shows and | | | | The last problem I will mention is a current one as well. |
| goony advertisements don't do it. To the average car | | | | The Auto Task Force established by our new leader |
| buyer, you and me, who is General Motors or Chrysler | | | | in DC to fix this mess. The task force itself deserves |
| or Ford? GM to me is my local dealer who talks to me | | | | its own diatribe but for now understand it is chaired by |
| when I stop by, who takes care of problems when | | | | Timothy Geithner, the Treasury Secretary who was |
| they happen, and who makes the donations to the | | | | unable by his own admission to operate Turbo Tax, |
| Little League my kid plays on. It is not Roger Smith, | | | | and, who is a known tax evader who was somehow |
| Rick Waggoner or the Auto Czar now chairing a | | | | approved for office anyway. The co-chair with him is |
| committee in Washington. | | | | Lawrence Summers, an economic advisor ... and what |
| As I write this Chrysler announced the massive closing | | | | does any of this have to do with turning around an |
| of dealerships and GM is expected to do the same | | | | auto company? |
| and for what? Dealerships sell cars and that is | | | | If you think that this is only impacting the auto industry, |
| Detroit's problem selling cars. Are the dealerships | | | | think again. The same leadership has infected all of |
| actually a cash drain on corporate? No! They are | | | | corporate America today. It is sad indeed that we sit |
| independently owned businesses making their own | | | | here in the rubble of what was once America. It will be |
| payroll, paying all the floor plan interest to the finance | | | | even sadder if we continue to play in the rubble and |
| companies that gouge them and they are being shut | | | | do nothing as every day Americans to get ourselves |
| down. I've heard it said to reduce inventory of | | | | out of it and stop the nonsense that is literally |
| automobiles. Well ask a dealer if they 'order' the cars in | | | | destroying our way of life ... for our children. |