Listen up, Detroit automakers: It's time to get real

Watching Detroit automakers wallow toward a rescue plan that passes the low standards of Congress is like reliving the pain of the inaugural Tampa Bay Bucs team as it slow-mo'd to an 0-14 record. They aren't even close to presenting a winning strategy. Knock knock, Detroit. Anybody home? Today — Dec. 2 — is the deadline set by Congress for a "real" road map to regain a competitive edge in the domestic auto world.

Congress deliberates Thursday and Friday before a vote is likely held next week to determine whether the automakers' pitches win some temporary federal assistance.

A typical member of the United Auto Workers at Chrysler, Ford or General Motors was paid at least $71 an hour in wages and benefits in 2006. In 2005, workers at Japanese auto plants in the United States earned $42 to $48 an hour by comparison.

So Detroit spends gobs more per worker per hour to make vehicles perceived — right or wrong — as inferior to many models made elsewhere in this country for far less.

If you think I'm picking on you, just wait. Toyota, Honda, automakers from South Korea, Europe and — sooner than you think — India and China will be picking your bones like vultures on carrion.

Detroit: Pick up the pace. Throw out your out-of-date game plan. The goal is not to survive but to thrive in the global auto Olympics.

In October, the auto industry posted its worst monthly U.S. sales tally in 25 years, with GM dropping 45 percent, Chrysler slipping 35 percent and Ford falling 30 percent. Aided by extra buyer incentives, November's numbers are due out today and, while unlikely to be as bad as these declines, will be very nasty.

So let's stop fiddling while Detroit burns. Let's get past your own bloated paychecks and bountiful benefits. Here are five things you should embrace if you want to be more than an intensive care patient living — barely — on a series of federal bailouts.

Are these recommendations draconian? Absolutely. But face it, folks, we're in a downward spiral and need to snap out of it, pronto:

1. Put GM, Ford and Chrysler into Chapter 11 bankruptcy. They'll end up there sooner or later. If we wait, all three will be much weaker and harder to save. Use federal aid to ease the hit on auto suppliers and others sure to be hurt by collateral damage.

2. Combine the best of GM, Ford and Chrysler into one new U.S. company with a new name, a new line of vehicles, new management, a new contract with employees and, yes, a new and more competitive culture. Here's today's La-La Land: Ford thinking about selling Volvo, GM contemplating shedding a few of its many brands and Chrysler wondering why pushing Dodge Ram trucks and muscle cars at auto shows still makes it look like a dinosaur.

3. Adopt a federal Manhattan Project-level commitment to invent a true next-generation vehicle. The hyped Chevy Volt, promised (maybe) in 2010, is already obsolete.

4. Set a goal to recapture the world lead in fuel efficiency — and do it. Make quality vehicles. Eye candy comes second.

5. Thin the herd of way-too-many domestic dealerships. And for goodness' sake, get rid of those private jets!

Comments on this article

by Phil	Dec 5, 2008 4:49 PM
We need to re-define what we mean by an "American" car. I work for a Honda Dealership: Honda and other makers build manufacturing facilities in their largest markets. There is none larger than the U.S. Accords have been made in Ohio since 1980.

by Betty	Dec 4, 2008 1:35 PM
Its time we say no to big corporate bailout. We as tax payers are struggling to survive and make ends meet. Why are we expected to pay higher taxes to bailout large corporations/CEO high salaries? We must all say NO to the bailouts!

by Dan	Dec 3, 2008 6:03 PM
Build quality cars? Ford had the most vehicles in the IIHS safety ratings, with GM tied with the oh-so-loved Toyota further down the list. http://www.walletpop.com/article/_a/bbdp/ford-volvo-top-safe-car-list/259635

by Jocephus	Dec 3, 2008 3:56 PM
I'm glad to see that at least some readers know the $71/hr figure is a fabrication, but it's depressing that a St. Pete Times journalist couldn't be bothered to fact-check before repeating someone else's numbers. You should be ashamed, Mr. Trigaux.

by Mike	Dec 3, 2008 3:47 PM
after your comments.If you have a vehicle or two, can you please write what manufacture it's from.

by Pete	Dec 3, 2008 2:44 PM
Here is my suggestion- Let the Oil Companies bailout the Auto industry!

by Dusty	Dec 3, 2008 2:00 PM
Hey Jack, GM has more models over 30mpg than toyota,Ford and GMs full size trucks get better mpg than toyota or nissan. and their over all quality as as good or better than anyones. Hell Focus has 65% fewer recalls than Camry

by Kate	Dec 2, 2008 6:04 PM
$71 includes benefits, he says. My "hourly" wage is one thing; my total wage with benefits is another.

by Mary	Dec 2, 2008 6:03 PM
Can anyone tell me why GM was #1 till the economy failed and Gas went so high.

by Wolf	Dec 2, 2008 6:02 PM
Great article (can't believe he's from the Tampa Bay area!). I would add one more element to the plan: JIT manufacturing. Who wants to buy a "new" car that's been baking on the lot for 6-8 months - order online, build it, and pickup at a local site.

by Kevin	Dec 2, 2008 6:02 PM
Regardless of the story's incorrect dollar values. It's simple, they don't get money through car sales due to a lagging economy & overpricing, so they want money through our tax dollars. Where's my bailout? I can't pay my bills either!

by Mimi	Dec 2, 2008 2:06 PM
the $71.00 is eroneous

by Mimi	Dec 2, 2008 1:22 PM
The figure if $71.00 is wrong and you should read up and get your fact straight. I worked for GM for 43 yrs.

by Jack	Dec 2, 2008 1:18 PM
Lowering UAW wages won't fix the quality & MPG of Detroit cars. Inefficient non-competitive designs of the Big 3, even if lower-priced, won't fix the problem. CEO's who approved these designs should feel the pain - ax them for their shortsightedness.

by richard	Dec 2, 2008 12:11 PM
Excellent plan. I suspect many of the suppliers also have $70 per hour jobs & they need to be thrown into the equation. I would love a buy a domestic vehicle that I could be proud of.... I'll even take a "just not embarrassed to be seen in".

by albert	Dec 2, 2008 12:11 PM
Yur right on mr Trig.I see a lot in common between the big 3 and the federal gov,both wasting billions like it was nothing.Time for a reality check,on both fronts.Most of us only dream of makeing the money and benifits these people do.

by Rae	Dec 2, 2008 12:11 PM
Being someone from Michigan (west shore) and who has had to put up with Detroit hammering the state with it's losses and false promises since 1970, I say YIPPEE! It's about time. All we need to do is kick the over paid execs out of the jobs & homes.

by MJ	Dec 2, 2008 12:11 PM
It is sad to see you repeating the myth of a $71 an hour wage for autoworkers. I would expect this from the Trib not the Times. Please see the link below: http://mediamatters.org/columns/200811250012.

by todd	Dec 2, 2008 12:10 PM
Ford has been well prepared for the downturn GM well they haven't had a brain in years. Blame the UAW not the company. The UAW forced the pay increases by using a strike to get there way. I would say Congress approve the loans then cancel the UAW.

by john	Dec 2, 2008 12:10 PM
You need more US car companies, not less. Bottom line is that we have to sell more US products to a world market, not just to US consumers. Innovation seems to have died somewhere.

by Bill	Dec 2, 2008 12:10 PM
Great passion from the sun shine state. The $71 wage will soon be history with the new UAW contract. The problem with closing the dealers lies within each states' government - these are mostly privately owned businesses the Detroit 3 cannot touch.

by Jonathan	Dec 2, 2008 12:10 PM
Where is your evidence that the pcurrent models make less money than hybrids et al? There isn't any. Hybrids, etc. make FAR less money (and probably lose it faster) than F150s etc. Stop confusing the world in your head with reality.

by Tom	Dec 2, 2008 12:10 PM
No employee received $71 in pay and benefits Robert. The working employee had to earn $71 per hour to cover his costs plus two retiree's costs totalling roughly $71 per hour.

by john	Dec 2, 2008 12:10 PM
start over. rename all companies and fire everyone. then rehire anyone who wants to wake up and except the salary they deserve, and it's not gonna be $71 an hour. OR millions for the CEO.

by Tom	Dec 2, 2008 12:09 PM
I would like to see the UAW chip in their monthly collected union dues to help pay off the $25B debt or to be used in some other way. I see no reason for the UAW to keep the dues collected during this time of need.

by Charles	Dec 2, 2008 12:09 PM
Triqaux missed the main problem. The Japanese government pays all health care costs and research and development costs for its car companies. We must do the same to compete.

by Barbara	Dec 2, 2008 12:09 PM
The real problem with the Big Three is BAD MANAGEMENT who made poor decisions and are overpaid. Please don't blame the end-of-the-line worker, who just does what the bosses say. Don't bail out these big guys. Workers can go to work for Toyota, etc.

by Bobbi	Dec 2, 2008 12:09 PM
If the U.S. had adopted universal health care decades ago, that cost wouldn't have to be added on to the cost of a car. Let those executives founder!!! Transfer the workers to smart car-makers.

by PJ	Dec 2, 2008 11:55 AM
If they get bailed out I will boycott them. I'm sick of bad business practice being rewarded. It's time to bite the bullet and just get through it.

by Tom	Dec 2, 2008 11:55 AM
Many people want and need powerful trucks for work and home use Robert. Dodge Ram trucks etc. and muscle cars are what many people can afford, who are you to tell these people "No you cannot buy them"? I agree to thin duplication at GM.

by by good grief	Dec 2, 2008 11:55 AM
OMG, 71$ per hour or $147,680 per year for the "typical union member". Common Mr. "Business" Columnist, get your facts straight or do not write an article. I cannot wait for the retraction. Bet we do not see one!

by fred	Dec 2, 2008 11:54 AM
Here, here! We should really stop rewarding failed companies and bad management with Federal Bailouts. The big 3 really need to walk outside theri jets and look around at the world today and stop living in their wet dream of their own excellence.

by Peggy	Dec 2, 2008 11:54 AM
I agree with you 100 percent that Detroit should get real. However, that $71 an hour figure is wrong; it was started by a New York Times reporter who added retiree & active employees' costs, then divided by current employees only. Please correct this

by Sam	Dec 2, 2008 11:54 AM
Excellent. Come to the table with solutions. Every time I see a truck I wonder what farm that was servicing. We did it. Triqeaux, good article.

by Finally some sense	Dec 2, 2008 11:54 AM
I've always wondered if anyone has shared this kind of common sense with US automakers. Good word - "dinosaur" most accurately depicts their current image. If I'm on the hook for their success as a taxpayer, I want to see economy, quality, low cost.