Dear Mr. Walikainen:
I understand that, politically, Dr. Mroz must support
Michigan industry but I believe that GM needs more drastic
surgery than the article implied. My first job (for 3 years) starting
1977 was with GM. I was disappointed with GM then and now.
I heard Mr. Honda spoke at a MTU graduation ceremony. Raffling the Honda
350 motorcycle created quite a memory. I still remember Mr. Honda's humility
and his speech about car design. As an engineer I was impressed then (enough
to start my career in the car industry).
I'm even more impressed with Honda engineering now. I've driven my last
2 Civic's have a total of 543,000 breakdown-free miles, averaged 37 MPG,
and performed no major repairs.
I believe there is a place for a reborn GM. The following article presents
a "major surgery" viewpoint that utilizes existing business models
and laws (no legislation required).
GM: The Case Against a Bailout
I was pleased to meet Dr. Mroz at a summer alumni reunion. I realize that
you and Dr. Mroz are busy but would be thrilled to hear a response. Thanks
for your attention.
Bryan Lundgren
EE Class of 1977
***
Hi, Glenn:
Your plea to "Help the Automakers: Michigan's Future Depends on It"
isn't falling on deaf ears. Far from it. You're absolutely right that
we do need to support our local car makers--but we also must make
certain, if Congress is to do the job, that the money isn't going down
a dark, bottomless rathole.
The output of the Big 3 (with some exceptions) has been the
ever
larger SUVs or trucks that not only have an insatiable appetite
for
petroleum product, but at the same time pollute the atmosphere.
Yes,
they're working on getting us more fuel efficient and less
polluting
cars, but they've had some fits and bumps in getting the product
on
the salesroom floor. The EV1 introduction as leased vehicles
then
sudden pullback and destruction of that fleet comes to mind.
Ford is
doing OK, I think, with its hybrid SUV but it should and must
do
better across its product line.
There's been talk about joint battery development efforts by
the
Big 3, but I've not yet seen any results there.
I do think they've seen the message sent by the consuming public,
but with the hue and cry brought forth by the ungodly increase
in gasoline prices simply caught them flatfooted. Of course,
they have
expenses in building their product, too, that other automakers
don't
have that contribute to the less than favorable price of the
cars on
the showroom floor.
So, let's hope the Congress does come through with an assist
program for the Big 3, but it simply can't be to keep the
workforce
working for another three to six months producing the same
non-salable
product and we have to go through the same saving exercise
next year.
It won't be a pretty exercise, I don't think, in Congress determining
what the "bailout" should be. But whatever it is, there will
have to be attainable goals set into that stick that must accompany
the carrot
that also must be given.
Best wishes,
Howard Barikmo
***
Hello Dennis:
After reading the article, "Help the Automakers: Michigan's
Future Depends on It", I can't help but to wonder if giving
the automakers a 'bailout' would be analogous to giving that
man a fish so he can eat for a day. The big three have had
deep seeded troubles for decades: Not addressing the rising
threat of Japanese competition, operating inefficient plants
and supply chains, Union influences that breed inherent inefficiency,
and entitlement programs that, in some cases, force the companies
to pay laid-off employees full wages for years after plants
are closed.
The constituents of Congressmen who don't have a stake in the
auto industry won't have much sympathy for such an article
until the auto industry demonstrates change. With the UAW lurking
in the background, like a computer virus, the machine cannot
run efficiently. Take time to dig up the Detroit News video
of a Ford plant that is state of the art: Suppliers on-site
feeding parts on a just-in-time basis. Reporters conclusion:
Such a plant could never exist in the USA. Why? Unions. Where
is this plant? Brazil. Question - How does Honda, Toyota and
Nissan produce efficiently in the USA? My guess is that one
of the 'big three' will have to fall into bankruptcy, then
rise from the ashes as a lean and non-union company. Have your
future grads get their passports ready.
Best regards,
Jerry Pellette '84