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Gov. Jennifer M. Granholm

Gov. Jennifer M. Granholm

Posted: June 1, 2009 03:05 PM

After GM and Chrysler Bankruptcies -- What Now?


Despite this morning's wrenching news about GM filing for bankruptcy, my state should not be the object of pity. Michigan should be the subject we study as the president leads an energy economy revolution. We will not be victims: we intend to lead the country in a move from 20th century rust to 21st century green.

Predictions are that by the end of this decade, due to the collapse of the nation's automotive and manufacturing sectors, Michigan will have lost almost one million jobs. Let me say that again: one million jobs lost in ten years in just one state. Good paying, middle class jobs. Jobs that have defined our state's identity and prosperity. Jobs that created communities, large and small. Gone.

We've had enough. We've gone through all the stages of grief and loss: denial, anger, bargaining, depression and, just maybe, acceptance. With GM's bankruptcy filing today, we know we're finally starting to hit bottom. While many of us have not been supportive of the bankruptcy strategy, we are bound and determined to climb out of this decade-long tunnel of darkness.

My fellow governors often offer their sympathies. "When I feel depressed about my state's situation," one recently said to me, "all I have to do is look to the manufacturing sector in Michigan to feel better." Hmmm. I'm not sure we want to provide the means of comfort to others in that way. We don't want anyone to feel sorry for us. We are resolute, determined, and focused on the fix to our situation. Key to that fix is using Michigan's expertise in manufacturing products to achieve our nation's goal of energy independence.

It is old news that with globalization, U.S. manufacturers move production to low-wage countries. But when it comes to manufacturing green products, it's time to change direction on offshoring. And here's why: in short order, the U.S. will have enacted a national commitment to reduce greenhouse gas emissions and end our dependence on foreign oil. This new energy policy will have defined a critical national need for the U.S. to become energy independent.

My point is this: we can't become energy independent by becoming dependent on energy products made by other countries. We either have the means to control our energy future, or we have to rely upon products made elsewhere to do it. Great nations do not relinquish their ability to make the products that will lift them to greatness. This is the moment for our nation to make green products here and export them, rather than the other way around.

In Michigan, we're not waiting around. Now and for the past five years, we are laboring to position ourselves to help lead the green industrial revolution. We adopted our own energy policy to create demand for renewables. We restructured utility incentives to deploy efficiency. We enacted tax incentives and grants for production of green products and created venture capital for green start-ups. We changed regulatory policy to invite producers of alternative energy products. We restructured our workforce training to provide the skills for green jobs. We are targeting our competitive strengths. And, now, we're no longer going it alone. We have a president whose energy policies will put Michigan's efforts on steroids.

Today, the advanced batteries used in electric and hybrid vehicles are made in Asia. Tomorrow, they will be made in Michigan. Today, the wind turbines used in much of America's wind farms are made in Europe. Tomorrow, they will be made in Michigan and in states across America. We have the technology, the workforce, the machining knowhow, the universities, the factory capacity, the infrastructure for transporting these products...and we will have federal policies that drive demand for those products researched, developed and produced in America.

So, three major opportunities exist to turn the destruction of bankruptcies and job losses into the creative reconstruction of America's manufacturing economy:

President Obama's commitment to free us from dependence on foreign and carbon-based fuels; the imperative that those green products be made in America to create that true independence; and a talented manufacturing sector hungry for work.

The moment is now to use our lean, retooled American manufacturing sector to build the green cars, batteries, a smart electric grid, wind turbines and solar panels that will lead us to energy independence.

It's a time of dramatic, historic, national transformation. And despite today's devastating news, Michigan is ready to lead.

Despite this morning's wrenching news about GM filing for bankruptcy, my state should not be the object of pity. Michigan should be the subject we study as the president leads an energy economy revol...
Despite this morning's wrenching news about GM filing for bankruptcy, my state should not be the object of pity. Michigan should be the subject we study as the president leads an energy economy revol...
 
 
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This user has chosen to opt out of the Badges program
07:35 PM on 06/07/2009
MIchigan may have hit bottom - and I hope it gets no worse, but now the rest of the country will suffer. Dealers across the land have been giving notice and plants all over are closing. Thousands will lost in the next year and it will hurt.
01:57 PM on 06/07/2009
I've been thinking a lot about Michigan - I have family and friends who live there, and I visited last week - and I've concluded that: 1) Along with California, this is what happens to states whose elected officials spend more time working for themselves and their special interest pals than for their constituents; and 2) a lot of Democrats are going to be looking for work in the near future. A beautiful state run by the unions and corrupt politicians. What could go wrong?
10:03 AM on 06/07/2009
Michael Moore believes GM needs to go. Another article I read argued that the bankruptcy was for appearances only and that the government's main goal was to slowly phase out GM and transition its workforce into other industries (easier said than done). Now, the governor says that the state is poised to transform itself with Green Technology. Who knows anymore what is true? If GM and Chysler are to transition from Bankruptcy with the intention of once again becoming viable, leading the industry in fuel efficiency and environmental friendlier offerings is the only option. History shows that evolutionary change is always met with skepticism because it's not easy. Time, innovation, money and a huge dose of faith are incumbent to the process. A good starting point might be something as simple as GM and Chrysler changing their names to fit a business model moving into the future rather than one mired by past failings.
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jacobomorales
07:23 AM on 06/07/2009
We all hope you come out of this better and stronger than before.
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07:24 AM on 06/03/2009
Granholm talks a good line of smack, but the bottom line is, unless we get some serious new technology to compete with the amazing energy return from sweet crude or high quality coal, we are all going down. Not only has Michigan been going downhill, but the whole country has. Real wages used to be calculated per person, but since real wages fell to fast, they changed it to household income. I remember as a child, 72- that a supermarket cashier could raise a family and send children to collge on thier wages, when now a cashier cant even live on their own much less raise a family. I remember that beginning backhoe operators in '72 made $14 per hour, when now they are lucky if they make $10. My mother made $14 per hour type setting, which now pays $8.50 but in real dollars the pay is now closer to about $2 per hour. 35 years and many jobs paid more in the 70's than they do today even with inflation. At the same time a 3 bedroom house cost $20,000 in '72 which is the same income burden nowadays as buying a car. The rest of the world 's poverty is catching up with us, energy is higher in demand and shorter in supply. The entire USA will all look like Flint Michigan in three dmore decades.
10:38 AM on 06/03/2009
Snarky attitudes toward positive change and hopeful vision only makes the task harder for those determined to act rather than spectate when grappling with serious circumstances. It will be a pleasure to hear the resounding silence when Granholm proves to be right.
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07:53 AM on 06/04/2009
Lars- I hope that you are right. I am not here to slam on Granholm. After all nobody gets elected on LEARN TO DEAL WITH IT. But, it won't be silence if Granholm is right, I will jump for joy and celebrate if she can figure a way out of this predicament mankind finds itself in. Plus, any alternative energy thing that does work will help cushion the crash landing of humanity.
05:51 AM on 06/07/2009
You're right, Hawk. 30 years of Reagan's trickle-down voodoo economics has left the wage-earning backbone of the economy to stagnate or decline. Follow the trajectory of the Bush years to a position of total despair not too many years from now.

Or change! Move into the 21st century with new ideas and policies. The idled Michigan work force possess a deep pool of knowledge and skill. Properly channeled by government direction and with government support, they can move in right new directions and help lead the country into the future.
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05:36 AM on 06/03/2009
We should never have bailed out the auto companies to begin with, Governor. Ya sold us a bill of goods.
02:06 AM on 06/03/2009
Only one solution will restore our economy, jobs, and dollar


Balanced trade enforced with tariffs
08:49 AM on 06/03/2009
Yes, that and public healthcare and retirement. Those green companies are not going to be able to afford their employees healthcare.
12:55 AM on 06/03/2009
Michigan is the best state right now to promote innovative entrepreneurs and small businesses. Not dumping huge amounts of cash into the pockets of the good ole boys. What should be next is building a stronger framework for innovation into the manufacturing and sales of Michigan products, not filling the pockets of poor performing decison makers in companies like GM and Chrysler and all the corporate welfared banks. It was great to point out that they really are too big and un-realistic in their organization. It was wonderful to publicly point out that there is more to manufacturing than factories, but supplier companies who support this industry. I think what next should be to stop giving life support to a group of companies that DO NOT DESERVE TAXPAYER MONEY. Let's support the little guy for once, instead of the good ole boys who have more than enough on their offshore bank accounts from years of evading taxes. Let's stop playing "Battered-American Syndrome".
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Trueheart
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06:36 PM on 06/02/2009
I'm most certainly not opposed to the concept of a fast conversion to the type of green manufacturing the governor speaks of.. But there is a caveat attached to projects green.

The same jerks who allowed the manufacturing sector of our economy to fall into the abyss are going to be getting big green contracts. Right now in Maine, the little guy is about to be trampled by a wind turbine project which will involve transporting huge pieces of equipment by road, at night, through formerly peaceful very rural areas. Massive 300 year old trees will go down and roads widened in the name of going green. Farm animals and wildlife will be subjected to noise and fumes they've never encountered before. And lastly, quality of life will be compromised for the people who make their homes and livelihood from the land. All of this could have been mitigated if there were a combination of sea/rail transport. Get your duckies in a row before you start the march to progress.
06:27 PM on 06/02/2009
The Day the Music Died: Musings on GM and America

by Diane Wilson
Many years ago, I listened incessantly to a song called American Pie: "Drove my chevy to the levee, But the levee was dry." Yesterday, June 1, 2009, I felt the music really did die as GM went under.

Consider, "Drove my Prius to the wind turbine, but the blades were rubbing, while top math and science students were drinking lattes, saying I need more credentials." Where's the magic?

The fates of GM and America remain intertwined. A quick look at the history of the Dow components provides a glimpse of the movement of the economy from America to points beyond. Who today has even heard of Dow components American Beet Sugar and American Can and American Car and Foundry and American Locomotive?

Clearly the American management of the big carmakers did a terrible job for many years and abandoned defense, allowing Toyota and Honda to score goal after goal on an open net.

So, now we have Obama in net, which cynics could laugh at, given that his knowledge of the game ranks lower than bowling. However, I think Obama has put in a floor for American industry.

Which means it might be cooler in the future to drive your Chevy to the place where they make solar panels. Obama would dearly love to put the word America back into the many companies it now oversees.
Posted by Canadian Scribe
04:33 PM on 06/02/2009
I'm in Michigan and I applaud what she says, but she's a politician.

For one thing, as long as GM and the Big 3 are in Michigan we will NOT be a green state. Detroit has ZERO mass transit because of the Big 3. How green is that? Our tri-county area is the wikipedia definition of SPRAWL with little to no mass transit.

THe big 3 in the Detroit area us foreign labor abroad AND in Michigan. H1b visa workers in our state take jobs that we could be doing.

We are at the mercy of the Big 3. We do what they want us to do. And that will probably never change. So Jenny can claim that we are moving to be a leader in green, but honestly those jobs will be done in China and India, or some other cheap labor country. And Michigan will continue to be the doormat of the Big 3, even as they slowly pull out and move to China and Mexico.
02:52 PM on 06/02/2009
Anyone familiar with the history of GM and the positive, powerful economic influence it has had on America's economy and the l0's of thousands of high paying jobs it has provided over 3 generations can only feel a sense of sadness and deep loss in its bankruptcy and its need for drastic reductions in its production of cars that no longer sell.
The reasons this has happened can be traced to CEO'S making bad or stupid decisions like continuing to make gas guzzlers when oil was reaching astronomical heights and these CEO's made 10's of millions each year for making such stupid decisions, also GM was competing in a global economy where cars can be produced with cheap labor and not have to pay for health care because these other countries provided single payer health care for all their citizens.
All the above was a recipe for financial ruin of one of America's greatest corporations because it failed to adapt to a changing world. Hopefully, a reorganized GM will be able to survive this financial crisis and come out of it a more competitive corporation that will once again be able to provide high paying jobs that this country so desperately needs.
03:55 PM on 06/02/2009
no, i will not buy another vehicle made by government motors........not now not ever.........when the government gets out of the picture we can talk........
11:20 PM on 06/02/2009
Who in their right mind would buy a car from a government owned enterprise? It's bad enough to ride Amtrak. Would you really want to be riding in a government produced automobile?
04:38 PM on 06/02/2009
People think it's because they made gas guzzlers. Uh no, i'ts because people bought gas guzzlers. GM made a huge margin on those gas guzzlers, they had pensions to pay and more retired employees than active employees to pay health care and other benies, so they had to make the most money possible.

I get sick of ppl saying it's because of the cars they made. No it's not. If they would have made gas efficient cars that NO ONE BOUGHT, they would have been out of business 10 years ago.
02:00 AM on 06/03/2009
Actually they did make gas efficient cars after the Arab oil embargo when gas prices shot through the roof. However when gas went back down people stopped wanting them.
01:14 PM on 06/02/2009
How about some truth here?!? Granholm was against GM and Chrysler filing for bankruptcy before she was for it. I wonder how much "pity" she would want if the automakers decided to do their manufacturing in other states. Her "come to Jesus" moment is too late. She wasn't being a leader of her state; she was being a politician!
12:52 PM on 06/02/2009
This is how great Toyotas, Hondas, etc... are and how green those vehicles are over and over again. Did you know they build less than 17% of their cars here? GM builds 78% here. The countries they build those cars in have almost NO EPA STANDARDS. They use slave labor and exploit human beings, even Toyota. Look it up online and see for yourself, it sickening!!!! Therefore, you just defeated the purpose of your "GREEN" vehicle. Those countries pollute more than any car here ever will. Don't they live in the same atmosphere as we do???? http://www.nlcnet.org/article.php?id=562
12:32 PM on 06/02/2009
i will never again buy a GM car.......as i disagree with government motors and will not give MRbo a win......i hope no one else buys them either........the union could use a loss also
10:43 AM on 06/03/2009
It's a free country.
06:01 AM on 06/07/2009
Who the hell is MRbo? That's a tad cryptic.

If that's a reference to Obama, and you're with Rush in hoping that he fails, and you're acting out of spite -- well, I guess you're a Fox News Republican. Lots of luck with that.