Letter to West Virginia Newspaper Editor

[MsgMills]

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 reso rts 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. H owever, 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 q uestion. 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

[exmark]

one of the best post i have read on this site explaining our current situation thanks

[DJD]

I can't respond to every item in this post but we (company) have driven fords lately and we had to get rid of them all. The vehicles were always in the shop with tire problems, brake issues, ELECTRICAL ISSUES out the ying yang and just poor performance overall. These were minivans, and full sized vans. We went to Chevy vans and Toyota's for the sales force and the problems have all been cut by 75%. Our mechanic made a ton off of us but now rarely bills us. I know there are some good and bad in all makes but Ford is something I'll never put my money into.
You know the big three can claim all the stats they want but the fact is they have put out so much junk and duplicate auto's over the last 30 years while the Foreign auto's have been plugging along with better cars and trucks day in and day out. Americans are not stupid (well most...not so sure of some left wingers) and they have spoken their choice by going to these other makes.
Before anyone gets upset I own a 95' Chevy truck and a 02' Harley by choice but the company vehicle is a Highlander and all three run great.
JMO.

[MsgMills]

You know I've owned just about every type of auto made.... But I can honestly say that since 1993, American Major Top 3 is all I'll ever buy. Ford to me has come a long way, especially in the front ends development of it's vehicles. I own two fords now, an 05 Escape, an 04 F150 and a 05 Chrysler Crossfire. I just can't see owning anything but a product of one of the Top 3 Mfg's. I guess my dad's teachings rubbed off on me about protecting American products and keeping the money here in the US. Versus buying a product where the money will shipped back to a foreign land.

[Dave Stewart]

I remember when I was stationed in Japan back in the early 70's. Had a Mazda factory right next door to the base where I was. Got to know some of the workers there. They made the equivalent of 35 cents an hour and worked 12-14 hour days. They lived in company housing, bought their clothes and food from company stores etc.....basically, the company owned them. Kind of sounds like the old coal mining camps here in this country before the UMW doesn't it?

This was at the time of the Oil Embargo and Nixon devaluing the dollar days. The Japanese were building smaller better cars and flooding the markets here in the U.S. with them as the U.S. companies were slow in gearing up to change their technology over to more fuel efficient and longer lasting cars....of course the U.S. companies were not able to use company owned slaves to build their cars, but no matter, the U.S. government was not supporting them either. The U.S. was allowing these cars into the country with very little import taxes or fees so we could help build up the economy of their economy...while at the same time, any vehicle produced by the U.S. coming into port in Japan was taxed at 100% of the MSRP of the vehicle. Of course very few Japanese could afford to buy an American made vehicle when they had to pay twice the price that a domestically made vehicle would cost them. Hell, I sold a 5 year old Bonneville convertable I had shipped over there for more than I paid for it originally and the Japanese that bought it thought he was getting a great deal.

We are our own worst enemies when it comes to fair trade to support our American workers and our American made products.