Monday, June 01, 2009

On GM


And so it's come to pass... the largest industrial bankruptcy filing in American history went down today, as dreaded and expected. I can't come close to expressing my sorrow and dismay over this horrible, terrible turn of events... so I'll let P.J. O'Rourke speak for me. Here are the first few grafs from a piece he wrote in the WSJ last week:
The phrase “bankrupt General Motors,” which we expect to hear uttered on Monday, leaves Americans my age in economic shock. The words are as melodramatic as “Mom’s nude photos.” And, indeed, if we want to understand what doomed the American automobile, we should give up on economics and turn to melodrama.
Politicians, journalists, financial analysts and other purveyors of banality have been looking at cars as if a convertible were a business. Fire the MBAs and hire a poet. The fate of Detroit isn’t a matter of financial crisis, foreign competition, corporate greed, union intransigence, energy costs or measuring the shoe size of the footprints in the carbon. It’s a tragic romance—unleashed passions, titanic clashes, lost love and wild horses.
Foremost are the horses. Cars can’t be comprehended without them. A hundred and some years ago Rudyard Kipling wrote “The Ballad of the King’s Jest,” in which an Afghan tribesman avers: Four things greater than all things are,—Women and Horses and Power and War.
Insert another “power” after the horse and the verse was as true in the suburbs of my 1950s boyhood as it was in the Khyber Pass.
Horsepower is not a quaint leftover of linguistics or a vague metaphoric anachronism. James Watt, father of the steam engine and progenitor of the industrial revolution, lacked a measurement for the movement of weight over distance in time—what we call energy. (What we call energy wasn’t even an intellectual concept in the late 18th century—in case you think the recent collapse of global capitalism was history’s most transformative moment.) Mr. Watt did research using draft animals and found that, under optimal conditions, a dray horse could lift 33,000 pounds one foot off the ground in one minute. Mr. Watt—the eponymous watt not yet existing—called this unit of energy “1 horse-power.”
In 1970 a Pontiac GTO (may the brand name rest in peace) had horsepower to the number of 370. In the time of one minute, for the space of one foot, it could move 12,210,000 pounds. And it could move those pounds down every foot of every mile of all the roads to the ends of the earth for every minute of every hour until the driver nodded off at the wheel. Forty years ago the pimply kid down the block, using $3,500 in saved-up soda-jerking money, procured might and main beyond the wildest dreams of Genghis Khan, whose hordes went forth to pillage mounted upon less oomph than is in a modern leaf blower.
And Mr. O'Rourke continues on in a manner that I cannot even come close to duplicating. Except perhaps for the same sort of sadness bordering on despair that I think we share. I'm older than Mr. O'Rourke, but not by a whole helluva lot (a mere two years, actually). Mr. O'Rourke... at the risk of giving away the entire thrust of his most-excellent piece... argues that America fell out of love with the automobile, and that's what killed the automotive industry. Not the credit crunch. Not the "bad" cars GM-cum-Detroit made all those many dismal years after the first gas-crisis. Not the bean counters. Not the Japanese, and now the Koreans. Us. You and me.
Well, you, maybe. I never lost my love for cars... in that I never bought an econo-box, a minivan, or a "practical" car. Nope... all my purchases have been affairs of the heart, with only one or two exceptions... which were driven (heh) entirely by financial circumstance. If I had the wherewithal I'd be Jay Leno II... and I'd need a warehouse to shelter all the rip-roaring automotive goodness I'd own. But I'm an anomaly... an exception to the modern day automotive zeitgeist. And more's the pity.
I rarely use this tone of voice... read as: attitude... in my postings, but I can't help but think GM would still be a going concern if there were more like me out there. Make of that what you will and feel free to call me any sort of name you choose. Or even posit a rational counter-argument if you feel the need. But this ain't about rationality, Gentle Reader... this is nothing but pure, raw emotion.
I mourn.
(h/t for the WSJ article: Gordon)

13 comments:

  1. Thank you for the heartfelt post.

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  2. Just to show my affection for American auto's, I bought a new GMC pickup. I really like it! It has a V-8. I know Toyota has a fine pickup, but I still like my GMC.

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  3. There is a part of me that is sad, but there is a part of me that is hopeful. Sometimes we build up a business or organization until it becomes an overweight monster. Maybe it is time to tame the monster or simplify it or kill it and began again - more effecient. I want to see what happens next - can things improve? If so, can we do this with Government - like the education system?

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  4. The entire US car industry is infected with three different species of Cancer, each on its own is malignant I might point out.
    The first of these is the obvious one that everyone complains about, the UAW. They are killing this industry as assuredly as putting a gun to the head and it is the UAW pulling the trigger. The greedy wants and desires to protect the “workers” is a far cry from the original origins of the Union movement in this country. Over the years the Government in the form of any number of agencies has taken over what the Union movement was required for (the whole Department of Labor, DLRB, OSHA, the MSA, the EPA, this list is long). Now the Union Movement is all about money, pure and simple. I can see them wanting to protect the retired workers but why can’t they do that using the dues of the current workers AND by not Buying politicians or hiring PAC or Lobbyist. They spend so much of their money buying the security and it has worked, they have The One in their pocket.
    The second of these is the Government itself. Up till yesterday it was all the regulations that were passed down from Congress and the multitude of Government agencies tasked with writing rules and specifications that all erode the control of the making of cars in this country. From what types of material to use in the making of the insulation used in the body of the car to the minimum size of the mirrors the big G is there. Even the paint is strictly regulated, and can you imagine how many regulations there are covering its application to the actual vehicle!!! This all adds to the cost of producing a car in this country and with the takeover by the big G they will now start to dictate “Style” as well. Can you say – YuGo.
    Lastly is Management – for 30 years the automotive industry has gone downhill, for 30 years it has descended down into the depths of business Hell. This is what you get when your business partner is the US Government (much less the President himself). What is going on here? Why are so many businesses tanking? Not just the Auto industries look at the financial sector, look at the Insurance business. These are all failing and why? Well I believe it is because of the “MBA”. That’s right, the Masters of Business Administration. These are mainly persons who go to school full time for 6 years to learn how to run a business, but graduate with this “Masters” certificate without ever once stepping into a real business. And they are learning what they know from professors who themselves have never, ever run a business themselves. So how does someone like that run a business? Well they make money the old fashion way, by merger and acquisition or by debt swapping or offshore partnering or some other “magical” method. They have no desire to go down to the assembly line and find inefficiencies, or to investigate how the product is actually built and marketed. No, not like that, can’t get dirty you know. Oh no, lets ISO9000 this or Sigma that and see what happens. So for 30 years this industry has slowly spiraled down into this pit. Let them Fail I say.
    This takeover by the BO Administration is simply a way to use the bully pulpit of the presidency to conduct large scale social engineering on a wide scale. From the Oval Office GM and Chrysler will get their marching orders, suspend building SUV’s, commence making the “Peoples Car” – Opps that brand name was already used - by Hitler. I guess this signals were we are going.
    I and my family drive GM equipment (I love my Malibu Maxx SS) but I fear we are driving the last of that proud line.
    BT: Jimmy T sends.

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  5. Phil: Thank you, Sir!

    Darryl: Good On Ya!

    Lou: I'm a lil bit hopeful as well after sleeping on it. And it's not like this is a surprise or anything... the handwriting's been on the wall for quite some time. There's a LOT to wonder about, though. GM ain't just in the USA... there's Opel, Vauxhall, Holden, and GM do Brasil to think about, too. And a lot of those subsidiaries were/are profitable...

    Jimmy: It's hard (if not impossible) to argue with the points you've made. There's MUCH blame to be shared in this debacle.

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  6. P. J. is, of course, a genius (but you knew that.) Couldn't agree more.

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  7. PJ & Jimmy T are spot on, reflecting my opinions exactly.

    As a former (read: disappointed) GM owner, I'm personally not surprised that they are the first of the Big 3 to go in the tank.

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  8. Bag Blog wrote:

    "I want to see what happens next - can things improve? If so, can we do this with Government - like the education system?"

    You wrote that with your tongue planted firmly in your cheek ... didn't you?

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  9. I'll keep buying GM...and not just because of the discount. I love their big SUVs, trucks and maybe one day...dare I dream?...a 'Vette!

    I'm also a little more than upset about this...but am also optimistic about the future. I wholeheartedly agree with the points made by JimmyT...especially regarding the UNION. But enough about that.

    If I were in need...now would be the time to buy...

    GM will recover...my heartfelt hope!

    SN1

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  10. For the life of me, I cannot understand the hatred of unions.

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  11. Dan: You might understand better if you experienced the UAW's bizarre work rules and intransigence. I had direct experience with 'em while EDS was doing significant work in GM facilities in the '80s... and they (the UAW) were a colossal PITA, not to mention causing added time and expense to each and every project we had. I don't HATE them, but I sure as Hell don't have any damned LOVE for 'em, either.

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Just be polite... that's all I ask.