RE: Loans to GM, Chrysler etc. before Chapter 11 Reorganization

To: Wallstreet Journal Editor

Dear Editor,

In my view, loans now would be a band aid for an Amputation.

For 30 years the US automobile industry has been like a child slowly poisoned by the Father management and the Mother labor. Studebaker redux. While US Toyota and Honda where workers make a good living sold cars consumers wanted, stayed ahead of emissions curb, GM Ford did not as well. Habits build. People are reluctant to buy GM once having bought Honda or BMW. Management took out perhaps higher compensation, labor asked for ridiculous benefits such as “smoking in assembly line”. Detroit kept Japanese cars out of parking lots, ostrich businessmen decision making.

The fact is in the US, starting in California, consumers have been conditioned to expect more interesting autos like minis, Mercedes, Honda Civic, Prius, BMW, Lexus. Only CTS and a few US cars hold interest to many consumers so Detroit has had to use credit gimmicks. (Trucks were competitive).

This issue is not about helping a Union or Senior Management. Its about workers and taxpayers and common sense.

Solution, Chapter 11, break Union, bring in top US Honda and Toyota management to run the companies, drop wasteful contracts, replicate US Honda Toyota hiring and operations models. Not all workers but many will be saved. Do this before new technology at GM stops and the gap increases. Names like Buick will be sold to Chinese where respected.

Tata in India and other aspects of the market will then provide capital. Especially if Maserati designers, Honda efficiency experts, BMW handling are brought in and our habits are redirected to these new cars.

Further, parts dealers if decently run will supply new companies in South Carolina etc.

If the government is to do anything, let it be to guarantee a future of a reorganized GM etc. so consumers will continue to buy.

Vote against bail out and implement a non Union, retooled, remade modeling based on US Honda and Toyota. Hold hearings not just with failed management but with the head people of Porsche, Honda of US, Toyota of US to find out what they have done right. Their workers perhaps non Union are not squawking.