In today’s tough times, it is hard to generate an aggressive position with regard to the auto industry.  The entire global market is feeling the pain of a significant economic slowdown.  And, the devastating impact on those employed by the manufacturers and suppliers should a company like GM or Chrysler actually shut down is significant.  That said, it is very, very difficult to understand why we should be forced to bailout a business segment that is in trouble as a direct result of years and years of very poor management and bad business decisions.

The problems now facing the US based auto suppliers should not come as a big surprise.  The fact that they are in financial trouble was quite predictable and very avoidable.  The ignorance and helplessness that they are demonstrating now, as if they did not see these problems coming, is laughable.  As a lifetime Detroiter, proudly a non-automotive employee, I can tell you gross mismanagement, lack of vision, minimal risk taking, arrogance, greed, and entitlement are all core values associated with the automotive industry. This is a generational trait that goes far beyond the scope of what has happened in the past few years. Toyota, Honda, BMW and Mercedes are all experiencing sales pain solely as a result of the current economic contraction.  According to GM, Ford and Chrysler, they are in trouble because their legacy costs are high, they cannot get great ‘green’ vehicles in their pipeline in time to meet established requirements, and they do not have the money to retool their plants. While on the surface these seem to be legitimate issues, the real truth is that they have bloated payrolls, have never invested in the future, and have focused all their resources on high profit trucks and SUV’s which are now not selling.  How was this unforeseeable?  What was their long-range plan if and when it did happen?

As the auto industry is the foundation of our manufacturing sector, keeping these businesses in business is a must.  I am hoping that while we must step up and help, we do not simply write a blank check.  Ford, GM, and Chrysler must demonstrate that they recognize their accountability for this mess and make the requisite drastic changes.  After all, they have had 35 years since the Oil Embargo of 1973 to change their industry and build safe, exciting, and fuel efficient vehicles.  I am not in favor of giving them another 35 years of the same old ways with my tax bill.  It is time the auto industry got in touch with the rest of the real business world and incorporated fiscal responsibility, true innovation, and long-range vision into their business model.  Shortsighted, risk adverse and entitled behaviors got them here.  Without a significant culture change, nothing will be different.  Get busy Detroit—it is time for real change!

Editor’s Note: After I wrote this blog on Monday 11/10, I found this fantastic article by Paul Ingrassia in the Wall Street Journal.  Please read this.  I am not alone.