Thomas Friedman wrote an interesting Op-Ed about the car industry bailout in the New York Times. http://www.nytimes.com/2008/11/12/opinion/12friedman.html?_r=1&hp&oref=slogin.
Particularly interesting is Friedman's reaction to Chrysler CEO Bob Nardelli's assertion that the proposed government loan is not a bailout, but " a retooling for innovation". Friedman's response: “We have to subsidize Detroit so that it will innovate? What business were you people in other than innovation? If we give you another $25 billion, will you also do accounting?".
While the bailout might address the car companies' financial constraints, do we really think that the companies will be able to address any of the other constraints to innovation? Friedman has a proposal for that to- enlisting Steve Jobs to take over the industry!
Any other thoughts (I'm confident that Bryan will address the Unions!)?
Innovate? Not with Nardelli at the helm. One only has to look at his tenure at Home Depot where the only thing he taught his employees to say was "Have you tried Loews?" Pretty soon all the Chrysler employees will be saying "have you tried Toyota?" I think the individual members of the union could do some really great things but their hands will be tied by their organization structure, past attitudes and beliefs, and internal and external leadership. iChrysler-- Bring it on! I'd love to see it. We'd have touch screen driving and no more steering wheel or pedals! (although- I'd really miss shifting gears)
ReplyDeleteI think something like 97% of employment in this country comes from small businesses yet we want to bailout relics like the car industry. I say let them fail. Big Steel was the same way. We should learn from our mistakes.
ReplyDeleteLet's dump billions into helping small businesses and see the result.