Write Off

Here's a letter on the bailout that's causing a stir:

Editor:

As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right between the eyes. The fate of our nation's economic survival is in the hands of some congressmen who are completely out of touch and act without knowledge of an industry that affects almost every person in our nation. The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of millions of viewers.

Sen. Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you are the dinosaur, with ideas stuck in the '70s, '80s and '90s. You and the uninformed journalist and senators that hold onto myths that are not relevant in today's world.

When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S. GM was the world's No. 1 automaker beating Toyota by 3,000 units.

When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers.

Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the Corolla and Chevy's Cobalt beats the Civic.

When you ask how many times are we going to bail them out you must be referring to 1980. The only Big Three bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid.

When you criticize the Big Three for building so many pickups, surely you've noticed the attempts Toyota and Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight years Ford's F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see the new '09 F-150 you'll agree this won't change soon.

Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.

It's 2008 and the quality of the vehicles coming out of Detroit are once again the best in the world.

Perhaps Sen. Shelby isn't really that blind. Maybe he realizes the quality shift to American. Maybe it's the fact that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is more concerned about their continued growth than he is about the people of our country. Sen. Shelby's disdain for "government subsidies" is very hypocritical. In the early '90s he was the driving force behind a $253 million incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge loan the Big Three is requesting will be paid back, Alabama's $180,000-plus per job was pure incentive. Sen. Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation because of lack of knowledge and lack of due diligence in making your opinions and decisions.

After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus emergency vehicles to the recovery efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip!

We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently. While the governments of other auto producing nations subsidize their automakers, our government may be ready to force its demise. While our automakers have paid union wages, benefits and legacy debt, our Asian competitors employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in 2010, many lawmakers think it's not enough.

Some point the blame to corporate management. I would like to speak of Ford Motor Co. The company has streamlined by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally and the best auto company management team in the business.

The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700 billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the country's largest industry, there is obviously oppositions. But does it make sense to reward the culprits of the problem with $700 billion unconditionally, and ignore the victims?

As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business with. A Chapter 11 bankruptcy by any manufacture would cost retirees their health care and retirements. Chances are GM would recover from Chapter 11 with a better business plan with much less expense. So who foots the bill if GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent of repayment.

So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is definitely better for the taxpayers and the economy of our country.

So I'll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to misinform the American public and turn them against one of the great industries that helped build this nation, I must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits for 1 million retirees, eliminate 2.5 million of our nation's jobs, lose the technology that will lead us in the future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately?

Jim Jackson
Elkins

A Divine Bridge Loan

In Detroit, it appears that God favors a bailout for the Big Three.

Revolving Riviera

It's no secret that I love Rivieras. I've already posted a endearingly corny commercial linking the Riviera to la dolce vita, as well as photos of my old neighbor Richard's amazing 1963 model. Now my friend Keith has alerted me to a short video by his friend Kyle Knobel that features another vintage Riviera.


LUNCHBREAK 1: Riviera Spin from kyle knobel on Vimeo.

Here's Kyle's write-up on the project:

"This is the first video in a series of projects completed on my lunch breaks. I wanted to do some projects that were experiment based, that could be made quickly, and could work out some ideas that had been floating around in my head for a while. This piece was made using a simple point-and-shoot still camera.

"The car itself is gorgeous, and so much so of another era, especially given the prices of gas these days. I see the guy who diligently moves it each week when the street is cleaned. Long hair, beard. He looks like Greg Allman.

"I have a friend who owned a Riviera while in his early 20's. Champagne exterior with white interior. It was before I knew him. But I have heard the story where he stole away the girlfriend of a now famous musician, and drove her from LA up to the Sierras for sex in the backseat. And also of a midweek joyride from San Francisco to Yosemite Park and back in a single day. Those times too are of another era.

"Music by Thee Oh Sees. "

As American as Baseball, Apple Pie and Chevrolet

Is the United States about to nationalize the auto industry?

Wagoner might need to get out for G.M. to get bailout

G.M.'s gain may be Chief Executive Rick Wagoner's loss.

The Wall Street Journal reports: "On Sunday, Sen. Christopher Dodd (D., Conn.), a supporter of emergency loans for Detroit, suggested Mr. Wagoner should go if the government follows through and provides billions of dollars to help the auto giant restructure and return to profitability."

Disorganized

Jonathan Cutler says the U.A.W. is partly to blame for the Big Three's problems, but not for the reason you might think. The union's mistake? The failure to organize workers at the non-union foreign auto factories in the U.S.

"And yet there is nothing inherently unsustainable about employing a high-priced, unionized workforce. The crisis of Detroit's wage bill is entirely relative. Specifically, their labor costs far exceed the low-cost, nonunion American workforce at the U.S.-based, foreign-owned plants of competitors Toyota, Honda, Nissan and Subaru.

"If the UAW really is to blame at all, then, it is because of the union's utter failure to unionize any of the transplants. What has the UAW been doing all these years? Isn't it the responsibility of any good union to protect union employers from competitive labor disadvantages by organizing wall to wall, throughout the industry? How could it have left these transplants unorganized?

"As is now clear, when the UAW exposed the Big Three to insurmountable competitive disadvantages, it cut its own throat."

Thanks to Jim Holbel for passing this along.

Nice Work If You Can Get It

The much-maligned U.A.W. job bank may finally be on the way out as the union makes concessions.

Slim Chiply Couture

Just in time for the holidays, Slim Chiply t-shirts and other paraphernalia are now available online. Allan Dranberg, the man behind the Chiply product line, told me he has a good friend from Flint who urged him to create something using the potato chip "flavor deputy." You can order shirts, hoodies, boxer shorts, magnets and other stuff here and here.

Now everybody sing along...

"I'm Slim Chiply, the guy you see on the Paramount Potato Chips bright red pack/I'm the flavor deputy, protecting crispness in every pack/They're delicious, and so nutritious, yes sir'ee, they're pips! Paramount Potato chips."

Layed Off But Not Leaving

There's a sit-down strike, of sorts, taking place in Chicago, except this time the workers have already lost their jobs.

Monica Davey of The New York Times reports:

"Scores of workers laid off from a factory here that makes windows and doors have refused to leave, deciding to stage a “peaceful occupation” of the plant around the clock this weekend as they demand pay they say is owed them.

"Workers at Republic Windows and Doors, which laid off about 250 people, said they were notified Tuesday that the plant, more than four decades old, would close Friday. They said they were given insufficient notice and were never paid for vacation days or severance.

"The workers, many of whom were sitting on fold-up chairs on the factory floor Saturday afternoon, said they would not leave.

"'They’re staying because the fact is that these workers feel they have nothing to lose at this point,' said Leah Fried, an organizer for the United Electrical, Radio and Machine Workers of America Local 1110, who said groups of 30 were occupying the plant in shifts. 'Telling them they have three days before they are out on the street, penniless, is outrageous.'"

Flint Postcards: Stone's Theatre

I found this postcard, but I have no idea when and where this building existed in Flint. Any architectural historians out there?

UPDATE:

Würstside Warlørd said:

Message indicates the writer, from Root St in Flint was going to see Mary Mannering, an actress born Florence Friend in London,England, perform in "A Man's World" at this theatre. Located on Harrison and 1st Streets it was also known as the Music Hall Theater, the Majestic and also the Stone's Opera House and owned by Oren Stone. It was subsequently razed and The Flint Journal structure was built at that site.

J.L. said:
The Flint Journal bought the building in the early twenties and demolished it so they could build their current building, which was completed in 1924 (southeast corner of First Street and Harrison).