A Kid from Car Country
At 35,000 feet, northbound up the Mississippi River Valley, the roads below appear as footpaths running beyond the eye's reach. They are paved, of course, but many of them served as migratory trails that carried millions of southerners north of the Mason-Dixon to work in the car factories and steel plants of the Post World War II automotive boom.
The Dixie Diaspora was composed of African-Americans and low income whites leaving the uncertainty of farming for a regular paycheck on assembly lines in factory towns like Flint, Detroit, Saginaw, and countless other Midwest cities now derisively referred to as The Rust Belt. African-Americans, of course, were motivated by both the economic considerations of farm labor and the additional aspiration of less racism.
The car industry made America the planet's economic power and the people who stood the line and bolted on tires and dropped engines onto chassis and snapped on fancy trim are the workers who carried the country on their back. After fighting to save the world from oppression, they took up the fight for fair wages, health care, and retirement pensions and built history's greatest labor movement.
My parents, a sharecropper father from Mississippi and an immigrant mother from Newfoundland, were forced to abandon the land of the South for the line of the North. Daddy came home from the war hoping to farm but sharecropping was a modern form of indentured servitude and indoor plumbing and electricity had great appeal for my Ma. When a boyhood pal rolled into the cotton patch in a new Buick he bought with his wages from a job at Fisher Body in Flint, my parents destinies were altered.
Daddy had about $680 after the last season's cotton had been sold and he bought four bus tickets to Flint after getting a promise that our family could sleep on the floor of a friend's apartment. They arrived on a Saturday and Monday morning Daddy went and stood in a line outside of the Buick Motor Division Plant #36 and his farm boy muscles got him a job doing heavy lifting. He had dreamed of growing long rows of cotton and corn and riding horses and fishing in Mississippi but he was going indoors away from the sun.
"We all did what we had to do, buddy boy," he told me. "They was good jobs and it was how I'd could take care a y'all."
He still had a great struggle. There was never enough money to make the mortgage payment, buy school clothes and groceries, or pay for a broken down old car. Ma took a job as a waitress at burger joint. Her dreams of America came from the handsome soldier in uniform on the street in front of her house in St. John's, Newfoundland. She had seen Gone with the Wind and thought she was going to the South to live on a grand plantation where waiters would serve her cool drinks and she would glide around in hoop skirts and her gallant husband would command his far estate on horseback. Instead, she lay in bed at night and watched the stars roll through the roof cracks in their sharecropper's shack and worried she had made the most important decision of her life at age seventeen and it was irredeemably wrong.
Waiting tables was better than sharecropping. But not much. They had six kids now and the car plant took care of them in a way that was not possible on the farm. But the work broke Daddy. He missed the land and the sky and animals. The noise of the line and the greasy windows of the factory were not an adequate substitute for the life he had dreamed. But he joined the union and walked the picket lines in the brutal Michigan winter for health care and better wages. He watched other people driving around in new cars he had helped to build but he could never afford to own. A million little worries and a dozen big troubles in a cold, gray place without family nearby caused him to fall to pieces. He spent time in an institution and when he was cured he had nothing to look forward to other than going back on the line. But the automobile industry gave him possibilities he was not able to find anywhere else with his tenth grade education.
He would not know what to make of what happened to the car and truck business. The idea that GM and Ford or any of the big names might be on the verge of bankruptcy would be incomprehensible to my father. How could that happen when the UAW built the cars that were designed and the American public gladly purchased them? Consumers wanted SUVs and they came off the line, until the price of gas hit $4.00 a gallon and suddenly Detroit was left with shining, glorious dinosaurs. Is that the workers' fault?
There are an estimated three million supply jobs connected to auto manufacturing in the U.S. and they will disappear if Michigan takes another financial hit. The executives have money in the bank and they will be okay but the men and women who stood the line and built the vehicles have fewer resources. Their unions have protected them some and provided benefits and pensions and good wages but the second and third generations of autoworkers may witness the collapse of what their parents and grandparents built. There will be a rush to blame this on the unions and the workers on the line but they did not make the strategic business and marketing and design decisions. They simply did their jobs and tried to get their share of a fat pie.
Things are quite bad, though. There is little left of my hometown of Flint. The city looks even grimmer than it does in Michael Moore's documentaries. Unemployment in Michigan is about ten percent officially but almost everyone seems to be looking for work and no one knows how many have simply given up and left. As much of this city seems to be deserted as it does occupied. The car and truck plants are hardly operating and many are simply shutting down. Residential neighborhoods, once bright with new paint and well-kept lawns, are rundown and weedy. People wonder what is going to happen and if anyone will be smart enough to know how to correct what has gone wrong.
In the little coffee shop where my mother used to work near the Chevrolet Truck Plant, three teenagers were sipping coffee in the early afternoon. The stools and tables were otherwise empty. The tiny restaurant used to bristle with business as the shifts changed at the factories and people came by from the businesses that thrived in the shadows of the factory walls. The 25 year old who owns the coffee shop now is displaying a kind of forced optimism.
"We're doing okay," he said. "We just don't know what comes next."
Nobody does, I thought. But once this grim place was the most alluring in America and led the country with ideas and jobs and technology and people gave up their old lives and family histories to come here and be a part of the boom. The engine of the world was built here.
And it is hard to believe we are simply going to let it run out of gas.
Read More:
Should the Government Bail Out the Big Three U.S. Automakers? HuffPost Bloggers Weigh In
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Another little statistic - it's currently "common knowledge" that US auto workers make $70/hour. Wrong. The average is a little under $30/hour. Where did the $70 figure come from? Well, an auto worker makes $30/hour, then you add health care costs and pension costs for his pension, and you get to about $41/hour. The rest is LEGACY COSTS FOR CURRENT RETIREES. These are people who retired as auto workers and for whom the auto makers are still paying health care costs and early retirement pensions. The current worker isn't receiving that.
US auto manufacturers are paying about the same labor costs as Toyota et al if you take their legacy costs out of the equation. So how do you get around that? By renegotiating the UAW contract to bring it up to date with current work profiles, in which a worker gets contributions to a 401K througout his working life, and that's his retirement income; and worker who retires early pays his own health care costs via COBRA until Medicare kicks in. And while we're fixing problems in Detroit, we force executives to get incentive pay in stock options rather than cash, because that's how the rest of the world does that, too.
The US government has a great opportunity to fix problems in that industry that have been there for a generation - but Republicans say, it deserves to die. Republicans would rather have a depression in America that do the tough work of actually fixing problems.
According to GM you are wrong..
The pay package averages out about $36 dollars an hour... The benefits package adds another $33 per hour..
There's your $70 an hour (give or take a few pennies) and this comes directly from GM itself..
Michale...
Do you have a link to that information?
@Shaw940
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But your contention that US manufacturers aren't competitive are refuted by their sales numbers.
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I never claimed they are not competitiv
I merely claim that it hasn't saved them.
So, obviously SOMETHING is wrong. And simply throwing 50 billion dollars at them WILL NOT fix what is wrong..
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Your contention that US manufacturers should have been building more hybrids is refuted by the fact that those vehicles don't SELL as well as trucks and etc.
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Have you seen WHO KILLED THE ELECTRIC CAR?? Do you know the story behind the EV1??
The auto companies did NOT want to push the EV1 because the profit wasn't as big as with trucks and SUVs.. So the auto companies, being greedy and unscrupulous, killed the EV program in favor of larger profit margins.
And, even with those larger profit margins, it STILL didn't save them from having to fly to DC in private jets to beg and plead for the American taxpayer to bail them out..
So, it seems to me that the auto companies' greed and unscrupulous behavior backfired on them.. And that's the behavior YOU want to reward by bailing them out...
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They need a restructured labor agreement that's consistent with the rest of the industry and they need help on retiree costs.
{{{{
And yet, the UAW has already nixed that idea....
So, now what??
Just give them the 50 Billion dollars and HOPE they, all of the sudden, acquire a brain??
Michale...
Give it up. I think it's abundantly clear that you don't know much about the subject.
Yer right...
I don't have a stake in the auto industry getting their bailout.
Hence, I can be completely and 100% objective about it.
There is NO REASON to believe that 50 billion dollars will save the Big 3 and EVERY reason to believe that it will simply be throwing money away..
Therefore, the ONLY logical and OBJECTIVE course of action is to let the companies fail and build new one's in their stead...
The Big 3 have PROVEN beyond any doubt that A> they are incapable of innovation and bringing new ideas to the market and B> they simply will not allow anyone ELSE to innovate and bring new ideas to the market.
Ergo, the Big 3 must go...
How much more simple can it be???
The logic is as compelling as it is clear...
Michale...
Michale...
@SShaw940
Do you have a financial stake in seeing that the Auto company bailout go thru??
Michale...
No, I have no stake in seeing them survive other than I'm an American who would prefer to see the country avoid a depression.
One more time - I exlained the US auto makers' problem - legacy costs for retirees - and it has nothing to do with their ability to produce good products; and that is reflected in the fact that US companies sell twice as many vehicles in America as Japanese companies do, and GM sells more vehicles world-wide than anyone, and has done so for the last 77 years. I think that's pretty good evidence of their viability if they can overcome some labor-related issues and get restructured.
On a personal note, why is it that you seem to disregard all facts associated with these companies and cling to emperical, "common knowledge" that these companies don't make good products, aren't competitive, aren't innovative and so on? How is it that you can't do any kind of research, you can only spout off lunatic fringe talking points that are factually incorrect? Really, you have some serious personality problems, pal. If you're not seeing a doctor about that, you're being irresponsible and you need your own bailout.
If you are going to insist on making every response a personal attack on me, then you'll find yourself on the losing end of every discussion we have.
Where is the incentive for the Auto companies to get restructured if they know they can extort money from the US taxpayer..
You and I seem to have the same idea. The auto companies need to "restructure" or change their mindset..
But they don't have any incentive to do so is my point. Simply giving them 50 billion dollars and say, "here ya go, have fun" won't solve the problem..
You keep harping on the fact that they auto companies make best selling products and own half the market share yada yada yada..
Yet, that did not save them this time did it?? No, it did not..
So, the only LOGICAL conclusion that one can come to is that having the best selling products and owning half the market share is not enough..
The auto companies want 50 billion dollars to go about business as usual, when it's glaringly obvious to anyone who is objective and has more than 2 brain cells to rub together that "business as usual" is not going to work anymore..
That's the point of this whole thing that they (and you, apparently) just cannot seem to grasp.
And all the personal attacks and insults you hurl my way simply will not change that one basic fact.
Michale...
SShaw490 See Profile I'm a Fan of SShaw490 I'm a fan of this user permalink
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As I said, I knew explaining things to you would only lead to more rhetorical questions.
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And as I said, your arrogance exemplifies the problems of the Auto Companies.
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GIve it up. You've managed to take every side on the issue, from "they're irresponsible" to "they should have built more cars thay can't sell". You aren't presenting any coherent position, you're just blowing bile.
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Those are BOTH relevant issues. And, the only reason you are trying to blow it off with a "give it up" attitude is because you know that they are valid issues and you have no response to them.. No logical response anyways..
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Go to a nice, quiet place, take the meds your doctor gave you, and make yourself a solemn vow that you'll never post on the Internet again.
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Thank you for your concession that you have no logical or rational argument and must therefore resort to childish attacks such as this.
Your concession of my superiority is appreciated, albeit irrelevant
Michale...
@therealre
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GM sells more cars than Toyota
Ford sells more cars than Honda
Chrysler more than Nissan and Hyundai combined
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You keep spouting the company line, but yet have NO evidence to back up your claims..
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For the uptenth time the credit crisis is preventing them from getting their working capital thru conventional means
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OK, I'll play along..
If the companies are successful as you claim, then getting credit from sources outside the US would not be a problem, now would it?
If they have such high quality products and more than half the market share, they could pick and choose any number of foreign investors that would bail them out.
Logic clearly dictates this.
Given the FACT that the companies are crawling (metaphorically speaking. We all know they are flying their private jets) to DC to beg and plead for the US Taxpayer to bail them out, this would indicate that they make shoddy products and don't have the sales to justify a bailout.
When a company is in this position, guess what? They go bankrupt..
What it all boils down to is this.
It is the greed and arrogance of the CEOs, Management and Unions that brought the auto companies to this point. This is a fact.
And unless something drastic happens, that greed and arrogance will NOT go away.
CONT
@SShaw490
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Ok, I'll "explain to you", even though I know that will only prompt more rhetorical questions.
{{{{
And therein lies the problem with the entire auto industry. They think that they are above being questioned. That is why they fly to DC to beg and plead for a bailout in their private jets.
They think they are above it all..
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because the public isn't BUYING enough of them.
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Sorry, that's an excuse... "We're just giving the public what it wants"
As with any company, it's up to the auto companies to SET the trends, if they want to stay in business..
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It's interesting to me that you start off ranting that these companies shouldn't get financial assistance because they've been irresponsible in their business dealings, and now you insist that they shouldn't get assistance because they didn't build enough cars that they know are not good sellers, which would be the ultimate in irresponsible business practices.
Actually, this is not true. My positions have always been consistent
It's those who support the bailout of the auto companies who have changed their positions.
I'll ask you again. What exactly is your interest in the auto company bailout?
Michale...
As I said, I knew explaining things to you would only lead to more rhetorical questions.
GIve it up. You've managed to take every side on the issue, from "they're irresponsible" to "they should have built more cars thay can't sell". You aren't presenting any coherent position, you're just blowing bile.
Go to a nice, quiet place, take the meds your doctor gave you, and make yourself a solemn vow that you'll never post on the Internet again.
I think another problem we will face is that because these jobs paid well, they enabled auto workers to marry young right after high school and have large families. If they did not have such large families, they would not face so much difficulty. So far, I have NEVER heard a steelworker or a coal miner, or an autoworker say they actually liked to work there, they do it for the Money, becuase "I got 4 kids and another one on the way". Nothing that appeals to me and I am so glad and thankful I am not in that trap. I know I will get a lot of fire for this one but someone has to say it!
GM transfers taxpayer money to United Auto Workers retirees. They negotiate with the union about thousands of rules and regulations. What does this have to do with making cars? 8 years of George W. Bush has been about one thing: REWARDING FAILURE. Let's not reward the failure of GM, Ford, Chrysler, and the UAW. Dumping taxpayer billions on them won't help anyone, except them.
That's exactly right!
That's exactly what this bailout will do. It will reward the greed and unscrupulous behavior of the CEOs, the Management and the Unions of the Auto Companies.
It will send EXACTLY the wrong message and set a dangerous precedent.
Plus it give the Auto companies absolutely NO incentive to change their ways.
Michale...
Panel gaps. Everyone misses the point here. It is about panel gaps. Look at a well made car--the panel gaps are consistent and all else falls in line. If you look at American cars over the period of time
that the Japanese began to gather steam and the Europeans were attempting to address certain quality issues, American cars looked like crap. Cheap and poorly fitted materials were far more commonplace than those giants should have been capable of.
Engineering was held hostage to dividends. It isn't as though the big 3 were not any more capable than anyone else, but an inertia had to be accounted for and it is not easy to get something big to turn on a dime All they had to offer to the emerging companies was an example to avoid.
@SShaw490
Less then 8% of GM's vehicles offered get over 30mpg..
LESS THEN 8%!!
Please explain to me how a company that is whining and begging to be bailed out, to the tune of 50 BILLION Dollars, can justify this bailout if 92% of the vehicles they offer are guzzling gas hogs..
Michale...
Ok, I'll "explain to you", even though I know that will only prompt more rhetorical questions.
When GM sells a pickup, they build another one. When they sell a SUV, they build another one. When they sell a hybrid, they build another one. Thus, if they're not building as many hybrids as you'd like, there's only one reason - because the public isn't BUYING enough of them.
It's interesting to me that you start off ranting that these companies shouldn't get financial assistance because they've been irresponsible in their business dealings, and now you insist that they shouldn't get assistance because they didn't build enough cars that they know are not good sellers, which would be the ultimate in irresponsible business practices. I realize you oppose assistance, but it would be helpful if you'd avoid contradictory justifications for your position.
Actually, what happens is that GM will say to dealers: In order for you to order or carry a certain model, you have to also take whatever models we want to sell. If you don't then we won't let you have the models your clientele want to buy. Becuase you can't just send the autoworkers home when there is a slow period and they have to "keep the line going", dealers are often stuck with vehicles they never ordered and have to sell any way they can. Often, the unordered vehicles are large SUVs. That is why there are bargains on SUVs now, but they did not have to be created in the first place if the automakers could only send the workers home for 2-3 days when it is slow and come back when they are needed.
Mr. Moore, yours is a beautiful story. Your parents had much more than money, they had heart & soul. The fact that we are reading your columns, your writings & enjoying you on TV is telling us that education must have been a priority as well as good upbringing. Congratulations on what you have achieved.
Very touching article, Mr. Moore.
One thing for the anti-union commenters here: UAW members ARE TAXPAYERS.
Granted, they probably don't pay as much as in taxes as Corporate Executives. But they pay more federal taxes than right-to-work people.
I guess by some peoples logic, no loans for buying a home should be granted either. The money that you have deposited in a bank savings account is used to loan another customer money to buy house.
CONT
So, why should the US taxpayer foot the bill for the greed and arrogance of the CEOs, Management and Unions?? Especially when the 50 Billion dollars is going to do NOTHING but delay the inevitable by a few months..
If the auto companies want the American people to bail them out, they are going to have to show us that they recognize the need for drastic change.
That means getting rid of the CEOs and Management and reducing the Unions influence that, while certainly a POSITIVE influence for the employees to the point of absurdity, is a much more NEGATIVE influence in the running of a viable company..
In short, if the auto companies want the be bailed out by the American people, they are going to have to take DRASTIC measures.. If the auto companies refuse to take those measures, then the US taxpayer will IMPOSE those measures themselves
It's THAT simple....
Michale...
@therealre
}}}}
GM sells more cars than Toyota
Ford sells more cars than Honda
Chrysler more than Nissan and Hyundai combined
{{{{
You keep spouting the company line, but yet have NO evidence to back up your claims..
}}}}}
For the uptenth time the credit crisis is preventing them from getting their working capital thru conventional means
{{{{{
OK, I'll play along..
If the companies are successful as you claim, then getting credit from sources outside the US would not be a problem, now would it?
If they have such high quality products and more than half the market share, they could pick and choose any number of foreign investors that would bail them out.
Logic clearly dictates this.
Given the FACT that the companies are crawling (metaphorically speaking. We all know they are flying their private jets) to DC to beg and plead for the US Taxpayer to bail them out, this would indicate that they make shoddy products and don't have the sales to justify a bailout.
When a company is in this position, guess what? They go bankrupt..
What it all boils down to is this.
It is the greed and arrogance of the CEOs, Management and Unions that brought the auto companies to this point. This is a fact.
And unless something drastic happens, that greed and arrogance will NOT go away.
CONT
No evidence that GM sells more than Toyota and etc? Go look it up. GM has sold more cars than any other car maker for 77 consecutive years. GM + Ford + Chrysler beats Toyota + Nissan + Honda in US auto sales by 2 to 1. Last year, 9.4 million people bought those GM vehicles that "nobody wants".
The truth is in the numbers. That's not a matter of dispute.
And apparently, this is not enough to keep the companies from crawling to the American public to bail them out.
Why is that??
Michale...
@therealre
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The Ford Ranger gets the best mpg of all pickups
The Ford escape gets the best mpg of all SUVs
the Pontiac Vibe gets the best mpg of all crossovers
{{{{{
You just don't get it, do you??
A company that only has 7.5% of their models that get over 30mpg is a company that CANNOT survive in today's market...
Your way of thinking and the auto company's way of thinking is going the way of the dinosaur..
50 billion dollars would not have saved the dinosaurs and 50 billion dollars will not save the auto companies. Not when their percentage of high mpg models are in the single digits...
It's THAT simple....
Michale...
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