There’s talk tonight that the auto deal or bailout or bridge loan has fallen apart. Nuts.
I never quite understood that going into a restructured bankruptcy was good for the airlines but not for autos. Did you?
Plus, I do know that smart lenders are always concerned that their bridge loans are used to build a bridge to somewhere. Better a bridge than a pier, they like to say. We were about to buy a $14 billion pier.
Still, I was kinda hoping Congress would find a creative way to save thousands of jobs. I really got excited when I saw Ross Perot’s name being floated as CAR CZAR. Mr. Perot is the businessman and ex-presidential candidate who, after his sold his company to GM, got on their Board back in the 80′s, and started talking “obnoxiously” about their bureaucracy, about their need to listen better to customers, build more fuel efficient cars, and so on. They got rid of him but fast, those private-jet-flying, out-of-touch, overpaid CEO’s….they hated him.
Mr. Perot as Car Czar—-we’d be driving electric cars by next summer. Nuts. Perot is 78.
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The big problem I see, bigger even than mismanagement and UAW issues, is the perception that Big Three wheels are inferior. I’m no fan of bailouts, but if keeping the Big Three on life support buys them time, maybe that’s better than risking a sudden collapse in Chapter 11. Eventually these companies are either going to stage the biggest turnaround in the history of business or just wither away.
Exactly right, Brad. It really shows you how long negative PR or market acceptance can last, doesn’t it. I have no doubt that their cars are vastly superior to years-past, but the perception lingers. Still, Seth Godin has some basic re structuring ideas around their out dated delivery systems, etc. Big hurdles to overcome ahead, which might take longer and more money than they will get. Then…what about all the other businesses…hospitality companies, motel owners, small biz owners…I am glad I am on the outside looking in on this one.