Survival of the Automotive Industry

If GM,Ford, and Chrysler are to survive this economic recession, they need to make serious decissions as to the future of their companies, as well as their workers. they also provide jobs to other supporting services that provide parts and other related accessories.

GM, Ford, and Crysler also employ a lot of related industries. Steel, Alluminum, sheet metals, plastics, molding and a whole host of supporting companies that provide jobs to America. If these automakers go under, so do a lot of other hard working folks.

What these automakers need to do is conscentrate on is what seems to be everyone's problem, not enough sales to support itself. So what do you do? You cut expenses. That's an enivetable fact of life.

The trade unions have made it vertually difficult to keep these automakers in business. They must realize it may be necessary to make concessions or lose their workforce to foreign automakers who can afford to build outside the US and sell here in America.

Short term loans may pay the bills temporarily, but that can also be a prescription for disater also. America needs real soulutions to fix the problems. Stimulus solutions work if they can stimulate growth. Just giving you a loan to temporary get you over a minor hurdle is not the same as slumping sales, credit problem, recession and poor consumer confidence in the economy. It's like borrowing from Peter to Pay Paul, eventually, your bills will catch up to you, sooner or later, unless you have a workable plan to solve the underlying problem. Slumping sales, and consumer confidence, and a lack of credit.

Possible solutions to fix the cash flow problem are;

1. Reduce the workforce by early retiring older workers without a golden parachute. Trade stock into a 401K in liew of a golden parashute. That ultimately would be more than adequatle, especially with low stock prices and growing future returns as the company grows. This would reward the retirees for their hard work and sacrafice of an early retirement.

Union consession maybe necessary to allow New replacement workers at a lower pay wages to start over the next 5 years. Giving these companies breathing room to survive and grow.

2. The Federal Government needs to provide a tax credit or deduct the interest for those buying an American Made vehicle. That would truly be an incentive to buy American, which would indeed be a stimulus.

3. Workers who can give management ideas that can lead to money saving ideas that leads to increase production or real cost savings should be rewarded.

4. Management needs to workabke solutions for the good of their workers and their stock holders. (Employees are stockholders)

5. Consolidate plants that provide duplicated tasks.

6. Build a better automobile that proves good value.

If the company can't survive, no one survives.

Carlos R. Arvizu Sr

theDon1950@aol.com

I plan on running for politcal office within the next 2 years. If these Ideas make sense to you the reader, please let me know. These are solutions, not rederick. Thank you.

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