Vro9m Ro9m
Friday, October 23, 2009 Good Morning!
Having opined about the BAILOUT at length, if you remember we were supporters of the bailout. At times while expressing our opinions we wished to have been a "fly on the wall" in some of the various meetings to get a feel for the mood, emotions, context.
Well here it is...from Steve Rattner
From Fortune article Auto Bailout and getting rid of the CEO take the time to read these articles, they are informative surely you can agree or disagree, and even express your opinion by leaving a comment.
Think about this: Companies need bailouts/lifelines when they are no longer in a position to meet tomorrow's challenges.
Don't forget the classic car auction at the International Centre. This year its held by Dan Spendick's Collector Car Productions, we have to add that Dan is a super person...here is the brochure.
A few weeks ago we shared our thoughts on Loyalty, interesting that a couple of days ago everyone is talking about diluted loyalty or eroding brand romance. Could it be that product is no longer 50% of the band identifier. Could it be that being disruptive can impact loyalty? Share your thoughts!
Did you miss the LF-A? How could you, in case you did...just scroll down.
Kudos to @ToyotaCanada they did a wonderful job yesterday of Twittering from the LF-A media launch in Homestead.
You might have thought that we were in the motorcycle business that past week...yes some bikes caught our attention...why not. Must have something to do that its cold out, not ideal climatic conditions to ride a bike. Can't ride might as well enjoy videos, perhaps you are in the same situation.
Is staying awake while driving the latest trend in vehicle technology. Think about this the "nudge" has been in locomotives for countless years....locomotives...is locomotive technology migrating to vehicles.
This is the product Swash and some comments on how to sell it.
An interesting opinion on GM advertising, thoughts we were expressing last year, yes last year.
Bailout, Chrysler, GM, LF-A, Steve Rattner, Swash in Dialogue...2008, Vroom Room 
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Reader Comments (2)
If a business is short-sighted to the point of failure because they aren't looking beyond the next quarter, then it stands to reason that they have never been, nor will ever be, positioned to meet the needs of the future. This is terrible management and a style which should never be rewarded or subsidized with taxpayer money.
All those banks have been quick to evict homeowners who cannot make their mortgage payments. It's the position of these banks that they have a contractual obligation to raise the payments and are due these amounts every month. When the homeowner can't make the payments, the bank takes back the house and kicks them out. Nevermind the fact that the house will likely remain empty and in disrepair for months on end in this economy, they just do it.
Yet, when they can't pay their bills, the government ought to step in and bail them out so they can stay in business? That's a double standard if ever there was one.
Suppose someone buys a car through GMAC financing and is unable to make the payments. GMAC doesn't blink twice when scheduling the repo man to come in the night to steal the car away. Yet, when GM can't pay their bills, the government ought to step in to keep them in business? Again, a definite double standard and certainly not fair to those who are scraping by trying to pay as many of their bills on time as possible.
Discussions of socialism and all that aside, these tactics only serve to further reinforce the growing trend of irresponsibility in our western society. Without the threat of failure and humiliation, there is no incentive to do what must be done in order to survive, let alone seek to excel. Such actions breed a sense of entitlement and nurture aversion to responsibility.
The banks couldn't meet their financial obligations and got a bailout so they wouldn't have to stop living their lives as they wanted. General Motors couldn't meet their obligations and got a bailout so they could keep doing what they were doing. Why should I have to get a second job to make my mortgage payment every month? Why should I have to pay back my student loans? How are the obligations of major corporations more important than my obligations to them?
This is where talk of the lending centers, manufacturing industries, and economic impact come into play, certainly, but taking money from the taxpayers to subsidize failing industries keeps the corporations in business only so long as there are still consumers with money to spend. To pay the bills of the wealthy without paying the bills of the middle and lower classes only postpones the inevitable. If there are no customers, there can be no future for bailed out firms.
A company, any company must create customers and make a profit to remain viable, and hopefully make a contribution in the society in which it evolves. Up until a company is in a position to meet its present, and perhaps more important these days, future obligations its a viable company.
I was and and still am a strong proponent of the lifeline that was extended, not so much to save the company, as to save the manufacturing base, employment, jobs, and numerous local economies.
To save the people and the employment, indirectly the company must be saved, and the company must become viable, be in a position to meet the future challenges.
If Citizen Main Street gets in trouble chances are good that he will get his behind kicked. The argument is that CSM (Citizen main Street) gets his behind kicked in, and Multi Billion Corporation gets a helping hand. It does seem very unfair, and in some areas it is unfair.
In North America the consumer functions on credit, perhaps its not right, its the reality. With GM and Chrysler in financial difficulties both GMAC, and Chrysler Financial could no longer raise money to conduct business. Its a serious problem, the decision was made to save GMAC and close down Chrysler Financial.
Now GMAC works with GM and Chrysler dealers and customers.
The decision is how much of the future does one mortgage, to save the present. From my perspective that is the real concern, and we are all walking a fine line in mortgaging our future.
There is an ashtag for #supercorp take a look, it deals with Rosabeth Moss Kanter's latest book.
As usual thank you for taking the time to make thoughtful comments, its appreciated.