WHY 'Bailout' the big 3 when we can invest in them and us?
- By l.t. Dravis
- Published 12/10/2008
l.t. Dravis
I created and have written the nationally distributed marketing newsletter, BOTH SIDES NOW, since 2003. I authored two books, BOTH SIDES NOW, Sell Like Professional Athletes Win and DEATH OF A SALES MANAGER. In 2008, I introduced a daily column for national syndication to newspapers.
DETROIT,
MI – Tuesday, December 9, 2008 – WHY ‘bailout’
Why not guarantee the success of the Big Three
Detroit automakers – short-term and
long-term – by utilizing taxpayer investments to develop a new 3-Part business
model so Chrysler, Ford, and General Motors never again have to return to
We’ve all heard the propaganda – for and against – the so-called ‘
However, no matter which side of the so-called
‘bailout’ argument you’re on, it’s important to remember that Chrysler, Ford,
and General Motors do not just build cars and trucks . . . they create, design,
manufacture and deliver a broad range of vehicles for a variety of applications
at various price points.
These capabilities, developed and
delivered by thousands upon thousands of educated, experienced, skilled,
talented people working with an incredible array of advanced mechanical and
electronic tools and high-tech facilities, are too valuable for the nation to
throw away.
BIG 3 CORE CAPABILITIES
1.
Concept & Design . . . The Big 3 automakers are experts at creating and designing a
variety of vehicles for a variety of applications; skills which can easily be
transferred to the creation and design of ‘Green’ vehicles required to break
our dependence on foreign oil
2.
Prototyping parts, components, and completed assemblies . . . Chrysler, Ford, and General Motors have the experience, capabilities,
and tools necessary to produce computerized models of 3-dimenstional prototype
parts prior to dynamic elastic analysis in preparation for casting, forming,
and/or machining
3.
Fabrication . . . The Big 3 have
the proven ability to produce parts, components, and assemblies utilizing a variety
of specialty processes, including computerized press brake forming, computerized
precision laser cutting and machining, Coordinate Measuring Machine (CMM)
technologies, and computerized MIG and TIG precision welding processes
4.
Assembly . . . Chrysler, Ford,
and General Motors employ thousands of men and women who know everything there
is to know about manual and automated precision assembly processes
5.
Distribution . . . the Big 3 Detroit automakers have perfected the logistical
infrastructure necessary to efficiently and consistently deliver millions of
cars and trucks to every town, village, and city throughout the country
6.
Parts and Service Support . . . The Big 3 have successfully provided parts and service support for
tens of millions of vehicles in tens of thousands of configurations in
thousands of locations for decades
7.
Warranty, Repair, and Service . . . Chrysler, Ford, and General Motors have created, written, and
distributed printed and electronic service and repair protocols for numerous varieties
of millions of increasingly complex vehicles produced over decades
UTILIZING TAXPAYER
INVESTMENTS TO DEVELOP A NEW, 3-PART BUSINESS MODEL
1.
MULTIPLE-FUEL INTERNAL COMBUSTION ENGINE-POWERED VEHICLES –
Each company would develop fuel-efficient
internal-combustion engines which run on bio-fuels, natural gas, hydrogen, and
blended fuels for their existing lines of hybrids and non-hybrid cars and light
trucks.
a.
Technical Goals: Reduce time to design, prototype, acquire or modify capital equipment,
and manufacture new products from the current industry standard of 48 months to
24 months. This reduction in product development time would come from strengthening
relationships with suppliers and partners. New efficiencies would be built-in
to the manufacturing process by utilizing advanced technologies such as intelligent
flexible assembly processes, virtual manufacturing, ceramic injection, metal
injection, powder metal processing, precision forging, squeeze casting, and
reactive molding, improved precision tooling,
net-shape forming, and the expanded use of high-tech lightweight
materials (ceramics, polymers and specialty metals)
b.
Cost Reduction Goal (Build-to-Order Models): Each company would implement a ‘build-to-order’ matrix which would allow
consumers to order certain models with specific options direct from the factory
to eliminate dealer inventory costs, minimize dealer inventories, and reduce
consumer acquisition costs. ‘Build-to-Order’ vehicles would ship from the
factory along with dealer inventory units and would be prepared and delivered
to each consumer by the nearest factory authorized dealer
2.
ELECTRIC VEHICLES – Each of the three companies would cooperate to design, prototype, and produce
new battery/charging technologies to power pure-electric vehicles (similar size
and design as the hybrid Chevrolet Volt) with extended range (up to 250 miles)
at reasonable delivered price points.
b.
Cost Reduction Goal (Build-to-Order Models): The same ‘build-to-order’ matrix would apply to Electric Vehicles as
would apply to Internal Combustion Engine Vehicles
3.
MASS TRANSIT – Chrysler, Ford, and General Motors have the people, tools, and design and
manufacturing facilities necessary to create, design, prototype, manufacture
and deliver Hybrid buses, GLT buses, light rail ‘Trolley’ cars, commuter rail
engines & cars, and high-speed rail conventional and Maglev train cars
a.
Conventional (Green-Power) Buses: Chrysler, Ford, and General Motors would design, prototype, produce,
and deliver Hybrid buses which operate on bio-diesel, fuel cells (a reactant
fuel is converted to electrical power), fuel generated from renewable energy
sources, or electric motors charged by wind-driven generators
b.
GLT (Guided-Light-Transport) Buses: The Big Three would design, prototype, build and deliver GLT buses in two
modes: In ‘Bus Mode’, the GLT operates like any other bus, powered by a CNG or
Natural Gas burning internal combustion engine or by electric motors. In
‘Guided Bus’ mode, the GLT tracks a central rail (guide) imbedded in the
roadway to allow it to function as a ‘ground-bound monorail’
c.
Light Rail (also known as Streetcars, Trams, or Trolleys)
Cars: Chrysler, Ford, and General Motors
would collaborate on the design and manufacture of Light Rail cars (Powered by
overhead electric line via a ‘trolley’)
d.
Commuter Rail Engines & Cars: The
e.
High-Speed Rail (Conventional & Maglev) trains: The Big 3 would design, build, and deliver self-propelled, electric
cars which draw power from a GPS-controlled remote ‘3rd’ rail. Maglev
trains use electromagnetic power to literally ‘float’ over rails. Maglev trains
rely on electrified coils in rails and guide way walls for ‘magnetic’
propulsion at speeds in excess of 300 miles per hour
EPILOGUE – If we take an
objective, non-partisan look at the Big Three Detroit car companies, we have to
admit that they sell lots of vehicles . . . even in tough economic times.
In 2007, the Big 3 Detroit automakers sold 8½ million cars and
trucks in the
General Motors outsold
Worldwide, General Motors sold nearly 9.4 million vehicles in 2007
– more than any other manufacturer, including
In the
And, Chrysler outsold Hyundai and Nissan, combined, in the
Why?
Because Chrysler, Ford, and General Motors build quality,
market-priced vehicles that offer exceptional fuel economy.
The Chevrolet Malibu is 2 miles-to-the-gallon better than the Honda
Accord; the Ford Focus matches the fuel economy of the Toyota Corolla; and, the
Chevy Cobalt offers better overall fuel economy than the Honda Civic.
So, if the Big Three Detroit car companies fall by the bankruptcy
wayside, who will produce and sell all the cars and trucks that would have
otherwise been produced and sold by Chrysler, Ford, and General Motors?
Would it be in the best interests of the
Or any combination thereof?
Of course not.
If we are serious about the ‘greening’ of American industry and all
forms of transportation, if we believe in millions of American workers,
American technology, and American production capacity to keep the American
Dream alive, we should invest in our own industries and keep the profits – and the jobs – here in the United States
and finally rebuild this economy and, at the same time, finally the page on our
dependence on foreign oil.
Shouldn’t we?
Copyright © 2008 by LTD Associates West, Ltd. All rights
reserved.
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