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Home > Blogs > Ohio politics > Archives > 2008 > November > 13 > Entry
GM asks employees to lobby lawmakers
This from Cox Washington bureau colleague Chris Megerian:
General Motors is marshaling its dwindling number of employees to lobby their congressional representatives for government support to keep the company running.
“Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis,” General Motors North America President Troy Clarke wrote in an email dated Nov. 12.
Congress is expected to return for a lame duck session next week, and top Democratic lawmakers have already expressed their support for more aid. Additional support could include more additional government loans or access to funding through the Treasury’s $700 billion financial industry bailout.
The e-mail includes a script for phone conversations and a series of talking points on the importance of the auto industry. In the documents, the company portrays itself as attempting to transform its business in the midst of a financial crisis outside its control.
“We cannot sustain our industry because of the worst financial crisis to hit our country in over half a century,” reads the phone script. “We run the risk of losing all of the gains we’ve made over the years to make our company more competitive and to build new technologies and cars that will benefit consumers and improve our nation’s energy security.”
Clarke also emphasized the importance of the auto industry to the economy as a whole.
“Because of our economic contribution, the cost of allowing this industry to fail would be catastrophic,” he wrote.
General Motors’ latest financial report underscored the urgency of its plea for help. At its current rate, the company could burn through its $16.2 billion in cash reserves in less than a year.
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By VietVet
November 14, 2008 11:04 AM | Link to this
GM, Ford, Chrysler and others can save some real bucks by downsizing a good percentage of their middle management. Eliminate some of these Corporate, Divisional and Regional VP’s and Assist VP’s, etc. who command big salaries. Double up on job duties for the remaining managers.Also lower the hourly wages/ require shared benefit costs with the workers. With the salary and benefits savings, perhaps they can free up some cash for the development of fuel efficient cars to rebuild their business.Until this happens, not a dime of taxpayer money should be paid to these companies.By Patty
November 14, 2008 8:29 AM | Link to this
GM does not care about their employees, they will lobby for GM and still loose their jobs. They were making way too many cars. Supply and Demand that is how it works. There was no demand for these cars. Rather than look at new ideas they came up with the lease option. Every 2 years lease a new car. Ridiculous! They also were making too many cars cause just like the housing industry the car industry was being pressured into giving loans to people that could not afford new cars. Bad management and unions created this problem. They new things were out of control and took no action. If we taxpayers bail them out they will just take advantage of us when we do need to buy a car. We the taxpayers will supply the money to make the cars and then they will rip us off when they sell them to us. Does that make sense? No Bailout for anyone. Enough is enough. Government intervention should only be regulation to protect citizens from corrupted CEOs. If we bailout the auto industry - they will continue to earn ridiculous salaries - including the people on the line - they will get bonuses - and the unions will still make big bucks, while average citizens will still not be able to afford a car.By Mary
November 14, 2008 7:59 AM | Link to this
Long before this crisis hit, I often commented to my husband (who used to sell cars as a retirement job) that it appeared too many cars were being made and too many were on the lots. To me, this typifies the basic problem with our capitalistic and economic models - pumping out too many new things people don’t really need or can afford. Our economy, which supposedly relies two thirds on consumer purchases, should be based more on maintaining and refurbishing things that should be more reliable in the first place. That would also be “greener”. Our throw away, buy anew culture is ultimately doing in our economy, our culture and our environment. It is morally wrong, as well. I have read that it is better for the environment and the pocketbook to generally keep the same old car, maintain it and drive it. Yes, I am aware of improved safety features and improved gas mileage, but why can’t we have an auto industry economy that upgrades and maintains old cars, rather than pumping out new ones with mainly cosmetic changes and more cupholders. The big three American auto companies seemed to have management and union leaders lacking vision. It is difficult to swallow bailing these companies out. I was happy driving a 16 year old imported luxury car bought second hand when it was two years old. I now drive an imported hybrid that was not available from American manufacturers. I have another imported sports car bought new 31 years ago and still drive and which apparently needs little maintenance. Our other two family cars are highly reliable and safe imported cars. Our daughter just bought a new imported car after driving a new inported car on lease for four years. I can remember when the standard American habit was to trade in for a new car every two or three years because of reliability and consumer habits. What a waste.