I promise we'll post something quirky to lighten the mood later, but I feel compelled (compelled I tell you) to mention that Detroit's meltdown is finally getting the coverage it deserves. Detroit News' columnist Daniel Howes– he of the jump down turnaround better days ahead– has just used the "b" word in his latest rant, finally admitting that "Big three need cash fast" (never mind a competitive small car or ten). The Detroit Free Press is also beginning to wake up and smell the ashes. While I'm pleased that the Motown print media is finally growing a pair, I am astonished that these two august institutions have failed to fully and persistently chronicle the human cost of The Big 2.8's inexorable decline. Jim Dollinger (a.k.a. Buickman) tells me that Flint is even more like a ghost town these days, with business drying-up and blowing away. Where are the papers' reports on the lives disrupted by Detroit's downsizing? While we await these tales of woe from the sharp end– which will arrive in force the moment Chrysler files– we'd appreciate any local reports from our Best and Brightest.
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The Michigan media’s obliviousness to the possibility of bankruptcy for GM is astonishing. I don’t think a GM bankruptcy will be a cataclysm for the state (we can’t get much worse) but I don’t understand how it isn’t even being discussed. There is more talk around Flint about the 0% financing deal.
While not part of the B&B, I currently live in Flint. Many of my friends work at the Truck Plant, only 1 of them took the buyout. I mostly keep my opinions to myself because they are staunch UAW supporters. Personally I dont understand why anyone wouldn’t take the buyout, its much much better to be bought out than laid off….
There is talk about a new engine plant coming:
http://www.mlive.com/news/index.ssf/2008/06/general_motors_to_spare_flint.html
I tend to think the reason Michigan News Orgs will not report on the meltdown of the 2.8 is because most of them endorsed our Governess in the last election. Also, you can only report that things really really suck for so long before people start to tune out.
Flint is in trouble, but the real problem is going to be Saginaw, that place was a war zone already, and its only going to get worse….
Just wanted to add:
I have been coming to TTAC because the local and even national media will NOT report the truth about the condition of the 2.8. TTAC is the only place I can get a break from the constant spin and outright lies of the mainstream media.
Let’s Look @ the Stages of Change
– Denial
D2.8 – Spent decades in this stage
Detroit News – very, very long time spent in this stage
TTAC – started after this stage and from bullshit spun from D2.8 and other media for years ignoring the big picture
– Anger (very, very long time spent here too)
D2.8 – been in this stage for the past 5-6 years blaming everyone and everything for their faults. Instead of looking at themselves where the real source of failure was.
Detroit News – Along with D2.8 spent the decades blaming other countries, currency, migrant workers, partners / suppliers, other media, etc.
TTAC – Spent a lot of time here b/c of the obtuse posture the D2.8 and much of the media spent ignoring the problems. Much anger still exists.
– Bargaining
D2.8 – Spent the last couple of years selling off everything and mortgaging everything.
Detroit News – just entering this stage looking for ways out of the inevitable and that includes looking into Bankruptcy.
TTAC – not applicable as no control or insider information that the 2 primary culprits have.
– Depression (Likely they’ll spend a long time here)
D2.8 – still avoiding this at all costs but internally they are in this stage and don’t know what to do besides spin, spin, spin.
Detroit News – entering this stage now
TTAC – very short period of this as future is more important than dwelling on the past (autoextremist is still working through this stage though)
– Acceptance (TTAC has been here an extra long time)
D2.8 – not there yet
Detroit News – not there yet
TTAC – in this stage now with open and honest communication – no spin zone.
– Opportunity (TTAC is moving here looking at what opportunities are around as change brings opportunity)
D2.8 – not there yet (likely only time they will make it here is through bankruptcy and the firings of the idiots in charge and the board of bystanders – sans Mulally who just doesn’t have the time to pull off such a turnaround)
Detroit News – not there yet
TTAC – entering this stage with ideas and suggestions of where the D2.8 need to go and how to reinvent themselves.
Still the D2.8 management is the root cause of this malaise and environment of denial and lies. It won’t get better until they are shuffled off into retirement.
……..And no one saw this coming, right.
Wrong. Anyone with a TV and a brain could have seen this one a mile off.
Perhaps I’m just whistling past the graveyard but in certain areas of the country the economy is chugging right along. We have the fed here in DC keeping everybody busy and I talked to an auto dealer near Houston the other day who says they are booming from the higher fuel prices.
I’m thinking that the people who bought domestic cars in the past will keep buying them – granted the numbers are dwindling. I’m also guessing the lackluster rides we’re seeing today have been in the pipeline for years, back when gas was, um, $3 a gallon – maybe $2 even.
But. The big 2.8 do need to get their collective heads out of their collective butts and invent themselves some answers. Anybody remember the K car? There was a time when VW Rabbits were battled back by front wheel drive Horizons and diesel powered Buicks. Well – all of it didn’t work. The point is, have we all lost faith in American ingenuity? I believe that’s Necessity knocking at the front door…
Flint is in trouble, but the real problem is going to be Saginaw, that place was a war zone already, and its only going to get worse….
That’s funny. I live in Saginaw and work in Flint and I have the opposite impression. I readily admit Saginaw isn’t a paradise, but Flint scares the hell out of me. I guess it’s all perspective.
[$ub$cription Link] “Chrysler Taps $2 Billion Line of Credit: Daimler, Cerberus Help To Bolster Its Liquidity Amid Downturn in Sales” by Josée Valcourt in the Wall Street Journal on June 25, 2008 at Page B3.
Chrysler LLC tapped a $2 billion credit line from its owners, Cerberus Capital Management LP and Daimler AG, to bolster the auto maker’s liquidity amid a painful downturn in U.S. sales that is stretching its resources. The move, which had been expected, comes as Chrysler enters perhaps its toughest stretch since Cerberus bought a majority stake in August 2007. U.S. vehicle sales are in a deep trough. Chrysler’s market share is falling and could plunge deeper because it has few highly fuel-efficient cars to offer.
* * *
The drawing of the $2 billion loan was required as part of the agreement Cerberus and Daimler signed when Cerberus bought its stake a year ago, said a Chrysler spokeswoman. Daimler will provide $1.5 billion, with the rest coming from Cerberus. The loan is due in 2014.
* * *
“While I’m pleased that the Motown print media is finally growing a pair, I am astonished that these two august institutions have failed to fully and persistently chronicle the human cost of The Big 2.8’s inexorable decline.”
True, there was no criticism of the 2.8 management, but there has been plenty of ink on the human toll of the 2.8’s declining fortunes. While I was consulting in Detroit for the better part of 2006-07, the papers seemed to chronicle on a daily basis someone’s or some town’s plight. Everyone you talked to knew that the situation was dire and worsening, but in the same day’s issue you would have the story of UAW veterans rethinking their futures and another article cheerleading [fill in the blank’s] new turnaround plan. Quite the depressing morning read.
@craigefa:
Hmm maybe you’re right:
http://www.areaconnect.com/crime/compare.htm?c1=Flint&s1=MI&c2=Saginaw&s2=MI
I guess it is all about perspective, although its a bit like comparing Beirut to Fallujah….
The loan is due in 2014.
ha ha.
please keep the schatenfrude(sic) to a minimum. There is no joy in these revelations. The malaise of the 2.8 is present in other facets of our society and in the remains of what once was the greatest industrial power in history.
The attitude of the American people toward both their country and icons such as their automobile companies just plain sucks. There is no such thing as patriotism anymore. It is sad.
Of course they’re not going to care, it’s not their jobs going bye-bye.
quasimondo :
June 25th, 2008 at 7:04 pm
Of course they’re not going to care, it’s not their jobs going bye-bye
In other industries during my blue collar career. It has happened to me twice. My current job is based on fear and is recession proof. The worse things get, the more the haves want to protect them and theirs. It pays the bills, but is joyless. If people treated people better, they wouldn’t need the service I provide.
Skooter : “The attitude of the American people toward both their country and icons such as their automobile companies just plain sucks. There is no such thing as patriotism anymore. It is sad.”
I have been hearing that lament from employees of the Detroit automakers for years. You are wrong, patriotism and love of country is alive and well in the US but no one out here outside of Detroit equates the USA with GM. They are not synonymous.
As for people lamenting the loss of an icon, that is true but the goodwill was lost by years of poor products
maybe the press is finally worried about their jobs. instead of bad mouthing the workers at the auto plants, they have seen the light and realize it is the boys at the top. and if the 2.8 or majority of go belly up, whose ad revenue is going to replace it. maybe some of the press will be in line for those $14.00 dollar an hour jobs too. if there are any. then they can really write a story about life on the line. of course it might just be the un-employment line.
@skooter:
Well, GM’s sucked for 30 years, so that’s no surprise. I don’t care about “icons”, either. I care about what works. I’m from Flint, as well. My mom moved us out of there as soon as she was able. My uncle will retire from GM this weekend after 35 years. I don’t know what’s going to happen to him. I presume he’s going to work somewhere more stable. Part of me wants to stay because I have roots here, but an ever increasing part of me wants to stay for one more year, then take my degree in psychology as far away from the state as possible.