As a lifelong resident of Michigan, I was raised with the belief that we must purchase only those automobiles produced by an American car company (yes, even if some parts were made in foreign countries). To this day, I still hold that belief due to the fact that I find it incomprehensible to allow my own selfish desires to affect the employment outlook of my family members, friends, neighbors, acquaintances and my community as a whole.
Yes, Detroit built its share of lemons in the 70's, 80's and 90's, but quality has much improved since then. Here's an example; I am a self-described car nut, and my enthusiasm happens to get the best of me when that awesome, latest and greatest "wow" car design is introduced. As a result, I don't wait for rebates or incentives; I just go for it as soon as my dream car hits the showroom. The first time I could afford to do so was over ten years ago, when the '97 Ford F150 was introduced. I loved it, leased it and never had a single problem with it. Then came the '99 Chrysler 300M. Again, I leased this beauty and loved driving it. Unfortunately, it was not as trouble-free as my Ford, but it was okay. I figured it still looked good, was fun to drive and the lease would be up soon. So, the next best thing came out, and again it was a Chrysler product, albeit the Dodge line - the 2004 Dodge Durango. I leased this vehicle for four years and didn't want to chance a potential lemon, so I purchased the extended bumper-to-bumper warranty. Of course, I never had to use it; this vehicle was abused by my family, pushing the towing capability to the limits, and during our four-year lease we never once required service. Even at its lease end, this vehicle drove beautifully. So, it is my opinion that Detroit's automakers made a 100% improvement in quality in the short span of just five years, from the late '90's to the year 2004.
Some might wonder why I would have chosen an American car, after recently experiencing problems with a previously leased American car. Well, the answer is simple, my friend. If more people had my attitude, Michigan would not be where it is today. You see, Michigan has been in a recession for five years, and it hurts to know that my decision, combined with all of the others who might choose foreign cars, will deeply affect others.
While I agree that the business model of U.S. auto companies needs drastic change, I also have a clear understanding of what's ahead for the entire country if the government does not lend these manufacturers the necessary funds to see them through this very difficult period; we're living it already here in Michigan, and the rest of the country will experience what we've gone through for several years. Michigan lost 330,000 factory jobs since 1999, and as a result many others have been affected:
My husband is an energy center operator for a manufacturer directly tied to the auto industry. He's been laid off at least five times in as many years, and the threat is always lurking.
My dentist has lost 27% of his business due to the fact that people who don't have insurance simply do not go to the dentist.
My OB/GYN found it necessary to eliminate 20% of her staff - again, because women's "female problems" are placed on the back burner when they don't have insurance and can't afford an office visit.
A close friend has taken a 10% pay cut in order to keep his job. As a result, his home has been in a near-foreclosure status twice within the past year.
My sister, a medical biller, lost two jobs in the last five years due to our economy. She now works two part-time jobs, just trying to make the mortgage payment.
My close friend, a vice-president of the mortgage department for a local bank, lost her job when the bank was absorbed by a larger national bank.
Beautiful neighborhoods are left with abandoned homes because people have had to move just to find work. Of course, there are few people who can afford to buy homes, so these homes sit unoccupied.
Municipalities are eliminating police and fireman jobs because they're not collecting the taxes required to pay the employees' salaries.
School systems are eliminating teachers, resulting in higher class sizes.
My nephew, a packaging engineer, moved to Pennsylvania because there are no such jobs here in Michigan. The affect of our economy is also starting to hit Pennsylvania, and he's not sure if he'll have a job in six months.
The list goes on and on, and the loss of another 2.5 million jobs in this country will be absolutely devastating; entire cities will go bankrupt and recovery will take years. The government didn't waste a moment deciding the fate of AIG, who employs 100,000 people worldwide. Why are they so hesitant to save 2.5 million jobs here in the United States? Probably because they believe auto workers are overpaid - and they are. The UAW needs to voluntarily take a 20% pay cut, and the company executives need to do the same. Perks need to be eliminated, and survival has to be priority number one. Each car company should be required to produce small, fuel efficient vehicles within 18 months of obtaining government assistance, and do everything in their power to develop alternative energy for their vehicles - even if it means joint ventures. Executive greed needs to be a thing of the past; the auto company leaders could learn a thing or two from talking with Lee Iacocca, who generously offered to bring Chrysler back from the brink of bankruptcy for a yearly salary of just $1.00 back in early 1980's. Now, that's a true leader, and a man dedicated to seeing results. Perhaps Steven Feinberg, owner of Cerberus, which purchased Chrysler in 2007, should do a little something to help with the U.S. manufacturing sector, rather than just looking to make a quick profit.
If the auto industry in this country is going to survive, and ultimately keep the United States from entering a depression, everybody needs to give. Consumers need to take a second look at American cars, the UAW members need to take a 20% wage cut, as well as start paying for a portion of their health insurance, and CEOs and executives need to put an end to their greed. And most importantly - the key to the auto companies' survival - the United States government needs to lend the money these companies need so that manufacturing and its jobs remain a vital and stable factor of this nation's economy.
Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information on Marie's work, visit http://www.DonaldsonWilliams.com
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