"Letter to the Editor" from
Elkins Fordland
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 |
