Auto Makers Lack a Plan
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The men who run General Motors, Ford Motors and Chrysler must be very smart executives. At least, that is the assumption. There must be exceptional skills to run such corporate giants and to be paid fantastic salaries to do their job.
Admittedly, it was a public relations blunder to go to Washington in private jets to ask for government financial assistance. There may have been reasons - perhaps Chief Executive Officers are obligated for security reasons to use private transport. Nevertheless, the image of arriving in the nation’s capital in private jets to ask for public funds was jarring to most citizens.
However, the glaring omission of the request from Congress was the lack of details presented by these three executive officers. The request from Congress for billions of dollars is to pay the bills. However, these executives did not submit details how this infusion of public funds would help alter the present business model of these auto makers. Furthermore, there is not a detailed plan about how these public funds will be repaid.
What is to say that, if the rescue funding were to be granted, the auto makers would return for more funding in subsequent months?
Surely, these chief executive officers would not release their auto products to their supply line without a business plan and some idea of how payment would happen. It is incumbent that they also provide Congress and the American people with a detailed plan about how the funds will be used and how the funds will be repaid.
Perhaps it is an old fashion concept. However, there used to be a time when accountability mattered. To ask Congress for public funding without a detailed plan going forth is assuming that accountability be ignored. Isn’t that part of how this economic crisis reached the brink of collapse?
Catherine Forsythe
