I was recently asked to participate on a forum with the LA Business Journal whereby six CEO's weigh in with their opinions of the Government Bail Out of the Automotive Companies. I was asked to do so because of my twenty five years of automotive experience and my recent numerous television interviews regarding my National Foreclosure Solution Plan proposed to the Obama Adminstration that would remove all foreclosure inventory in the US by Mid 2009. This is what I proposed:
I believe it is important to our entire economic structure that the auto manufacturers are assisted at this time. However, regardless of where the money comes from, it should never be given without having a solution in place that will resolve the entire problem. Any program that does not address and handle all the components of the problem will not result in any real solution.
A successful bailout must include assisting all components involved; a) manufacturers, b) dealers, c) consumers, d) lenders and if any of these ingredients are left out the bail out will fail.
While I have a personal love for GM, Ford and Chrysler as American symbols of American industry and would hate to see any of them fail, if the individual dealers are unable to fund inventory and the American consumer is unable to get loans to buy cars and unwilling to purchase the plan will fail and the manufacturers will all be back in 2009 needing more money.
1) Provide the 25 billion that includes provisions whereby the auto dealers are provided with zero percent interest floor plans for a limited period of time.
2) Provide Fed Funds Rate money to consumers for all auto purchases made from 2008-2009 inventory.
3) Provide 100% tax credit for all purchases made between 2008 and June of 2009 for both wholesale and retail auto purchases.
4) Provide tax incentives to all lenders for granting these loans in order to get money flowing.
The plan above would give the manufacturer the immediate assistance he needs, provide the vitally important car dealer the help he needs, give the customers incentive to purchase, and cause lenders to start lending again. I have proposed a similar solution to resolving the real estate foreclosure issues in this country and am offering my help to successfully execute solutions to these situations.