AJSTC SPLIT ON AUTOMAKER BAILOUT
The Annapolis Junction Sports and Touring Club voted today on the automaker bailout and much like Congress and the rest of the Nation seem to be voting – it was a split decision. Lest you be unimpressed by AJSTC’s views, the combined automotive experience of those present and voting totals at least seven hundred years. Clearly not a bunch of car buying novices! The vote was: 4 in favor, 5 opposed, 4 undecided (one particularly shy member present managed to avoid the vote – texting their broker to sell the GM stock, I think).
As car buffs, those present would have to agree that the Big Three has not brought much to the table of interest to an enthusiast, but none would deny the utility, value, and usefulness of the many Big Three cars we have owned among us. So why weren’t this bunch of car fans screaming to save GM, Ford, and Chrysler; or alternately voting to throw them to the Toyota lion?
My theory is that we don’t understand what a bailout means; and for that matter what a non-bailout means. And I don’t think all those supposedly super smart people in Congress have a clue either. For that matter, I’ll add those really well paid auto executives to that group.
So, maybe we should think about solving the problem a different way. Let’s try coming at this from the bottom up vice the top down. The reason the carmakers are desperate right now is that they are not selling cars. Yes they have too high labor costs, expensive legacy retirement packages, and breathtaking health plan costs; but those problems have been around a long time and throwing a bailout at them won’t solve those problems anyway. But, get those sales back up and car makers and unions will solve those other problems without government help or deservedly go out of business.
Congress, I’ll make it easy to understand; give me (and all of my car loving friends, about a million of us at $35K per car) that bailout money to buy a car (I guess we have to make a rule here – no BMW, Honda, or Tata here, gotta buy a Big Three) and we will empty those dealer lots and factory fields of cars, the Big Three execs can keep their corporate jets, and workers keep their jobs. No complicated oversight or regulation required here. Give me money, I buy car. I’m even willing to report it on my income tax (and not bury the expenses in some un-understandable corporate annual report write-off).
I think it’s only fair, given their enthusiastic participation in this Garage Envy survey, that my friends in AJSTC are placed at the front of the line, behind me of course. I’m ready to start shopping tomorrow.
