It is in the national interest of the United States to preserve what is left of our manufacturing capacity. Accordingly, it is a proper use of the public purse to help save our automakers from dissolution. They are not beyond redemption; however a few key steps need to be taken for the infusion of public funds to make these companies viable in the long run.
Our politicians say as much, however there has been a lack of understanding of the root cause of Detroit’s problems as well as a lack of a comprehensive plan to turn the Big Three around. Below is a brief outline on how this can be achieved.
Above all, the Big 3 have a perception problem. American cars are now excellent, however they remain haunted by blunders made in decades past. Admittedly, current perception has been shaped over decades during which Detroit’s products looked bland and were of generally inferior quality to foreign competition. The second of these considerations was more important in the seventies and eighties, however by the nineties quality had largely caught, but then design stayed poor. Someone who bought an expensive Cadillac or a Buick, for example, in the early ’80’s was bound to be highly disappointed to the point that they might never have gone domestic again. However, today, Buick, and to some extent Cadillac, has a wonderful lineup of vehicles, but almost no one under sixty would consider buying a one. American car brands too frequently have as much sex appeal as an overweight accountant.The past cannot be undone, so we must focus on what can be done now to save the Big Three from their self inflicted state of near-ruin.So, here’s an outline of a plan that would comprehensively save Detroit: 1) Establish a National Automotive Task Force. America can once again dominate the world’s roads with our cars if we put our minds to it. Clearly current management of these companies has been uninspired at best; we need to bring in our best and brightest to help build cars for the coming generations. Young people today do not dream of owning a Pontiac or a Ford or a Chrysler. This can be change. How? Lets gets our best creative business minds, Steve Jobs of Apple, the founders of Google and Facebook for example, people who understand what consumers are going to want in their products, to help fashion a product and marketing plan to make these companies sexy again. Detroit knows how to make great cars, they are just boring to most young consumers. We need to people who “get it” in guiding long term policy otherwise these companies will go broke in the end. For that matter, the master of reinvention herself, Madonna, should be brought in to help advise the bean counters on how to remake themselves to appeal to another generation. The Task Force should function as the Board of the Big Three. 2) File for Bankruptcy with a government guarantee for car warranties of all cars sold for the next few years. By guaranteeing the warranties, the biggest stated concern of Detroit that people will not buy from companies in bankruptcy is removed. As long as the cars are backed by a solid and generous warranty - people will buy. Why Bankruptcy? Detroit has too much baggage, accumulated during times when they were much bigger, healthier companies. Pension and healthcare liabilities, union contracts which place them at a considerable disadvantage to foreign car companies manufacturing in the United States, and a dealer network that is far too large and costly to administer and supply, need to be renegotiated. This needs to be remedied and any commitment of public funds needs to be contingent on establishing the Big Three up as entities with competitive cost structures to their foreign rivals.3) Get Hollywood and the Media Engaged. Our President elect has a lot of clout here, and Unites States government should use its growing power to push those who help shape popular culture to help give a boost to public perception of American cars. On this matter, Hollywood and the media already try plenty hard already to shape public opinion; and saving our manufacturing base is surely of greater importance for the future of this country than, say, gay marriage - an issue that they their influence mightily to support. In conclusion, we need comprehensive out-of-the-box solutions to save our automotive industry. America is the country of ingenuity. It is what made Detroit, and the lack thereof has led to its sad state today. We can do this, and, if the money is well spent and properly deployed, GM, Ford and Chrysler can once again rule the roads, but anything less than a meaningful deployment of the great creative genius of this country will not work.For those concerned that this is not the place of government: that bell has already been rung. Furthermore, our government has traditionally been an active participant in the creation of our industrial might - from Alexander Hamiliton’s trade and economic policies in the 18th century, to the railroads which girded our country in the 19th century and of the superhighways of the 20th century. The key now is for the money to be well spent and contingent on a change in the way Detroit has been doing business. This is a great challenge to any government, but we the people must demand that our money be invested well. We should establish a properly grand vision befitting this great country for the future of the American automobile - That American cars once again be the envy of the world!
