What the auto industry SHOULD do...

[Pinnacle]

[FONT=&quot]The inherent flaw in the auto industry is the business model. It is the reason they are laying off scores of their employees. It is the reason they cannot compete with the rest of the world and waste capital building factories in foreign countries just to turn around and sell the new cars to Americans. It is the reason their unions exist. It is the reason they are even considered as bailout candidates. There are two scenarios with which solutions can be realized and we can revitilize and build a more proficient and perpetual auto industry. [/FONT]

[FONT=&quot]Scenario One[/FONT]
[FONT=&quot](This assumes that our current inefficient manufacturers stay in business by being propped by the government)[/FONT]

1. [FONT=&quot]It starts with building new cars. They need to stop doing it. We have enough cars in this country and we need to drive the ones we have because we have more than enough for everyone. What these companies should focus on on the domestic front is restoration. These enterprises need to become auto restoration and fuel efficiency companies. Look at the number of citizens whose monthly budgets are burdened and weighed down by auto maintenance expenses (anything from repairs to insurance). Most of the time, these expenses are unbudgeted due to being unexpected. In other cases, because one doesn't have enough extra cash, we have to leave our cars' repair needs unaddressed until we can afford to fix them. Converted car manufacturers could take in every single vehicle in the country that needs either repair or a complete makeover and modernize and revitalize them. Instead of having to go to the repair shop, you go to them. Salvage yards would be emptied by these companies and junk cars would cease to exist. Prolific and visionary entrepreneurs would spearhead the genesis of this industry revolution and create millions upon millions of new jobs. Auto restoration jobs would replace auto manufacturing jobs and this industry would have no need to build plants overseas as their business scope would not extend beyond the United States. There is more to all of this, but that is the gist of things.[/FONT]
2. [FONT=&quot]Pension plans need to be eliminated. It is not a company’s responsibility to insure the financial future of employees. That onus is on the employees…the individuals and families, themselves. Malinvested capital used for these plans can go toward stock buyback programs. That repurchased stock can then be given to the employees as options. The industry will be one of the first to return us to an economy of employee-owned companies and put the emphasis on equity instead of wages. Absentee ownership is part of what is destroying us as a nation. If employees can realize the value of equity in building their financial futures, and be given greater incentive to perform their jobs to the best of their ability, it will help put us back on track as a nation of production instead of over-consumption and get us on the road to rebuilding the middle class. [/FONT]
3. [FONT=&quot]Collaboratively with number 1, if these new auto restoration companies still choose to build new vehicles, they need to sell these new fuel efficient vehicles exclusively overseas. This will do wonders for American exports and in turn our trade deficit. Gone need to be the days of exporting dollars: we need to get back to exporting stuff. [/FONT]
4. [FONT=&quot]Executive pay needs to be mostly merit-based in the form of equity. The locked up capital used for high salaries can be reallocated toward building and/or rebuilding more efficient plants in distressed communities or a number of other effective capital needs. I am all for paying the executives more than average workers because they have more responsibilities and greater scope, but managers need to find quality methods of discouraging union formation. This is a start.[/FONT]
5. [FONT=&quot]We need more entreprenurs to enter this renewed industry through free competition. The free market needs to be heavily utilized to give us more choices of auto restoration & fuel efficiency companies. There is nothing wrong with an oligopoly that results from a free market, but having a bunch of giants because of a “too big to fail†mentality is killing us.[/FONT]

[FONT=&quot]These steps put into practice are a great first step in the long overdue right direction.[/FONT]
[FONT=&quot]
Scenario Two[/FONT]
[FONT=&quot](This assumes what should happen to our giants)[/FONT]

1. [FONT=&quot]The big 3 need to go under. Government interventionism in the free market, as we all know, will make things worse by keeping bad companies in business and creating more and more severe job losses over even more years. These companies STILL will not be able to compete as our faulty monetary system will make things even more difficult, pension commitments will continue to lock up desperately needed capital, and new cars being churned out like they are dollars are only going to put buyers in deeper debt and continue to oversaturate our market.[/FONT]
2. [FONT=&quot]We will suffer painful jobs losses by scores of Americans for a while. Towns and cities whose economies depend on these manufacturing jobs will suffer local depressions. We will need financial education companies and regular schools and educational institutions to implement programs that will train our future business leaders and work force for a redesigned auto industry. New auto restoration companies and fuel efficiency companies will emerge as a result of the efforts of these schools and companies. This 21st century auto industry needs to be built by the graduates of these educational institutions instead of having students train for jobs in existing failing industries.[/FONT]
3. [FONT=&quot]Pension plans should never be enacted.[/FONT]
4. [FONT=&quot]Plants should not be built overseas. The purpose of these companies is to serve the United States customers first. Focus on our local and national economies needs to come FIRST. We will worry about globalization later.[/FONT]
5. [FONT=&quot]If one or more of these companies decides to build new cars, the vehicles should be exclusively sold internationally. [/FONT]
6. [FONT=&quot]Financial education companies, adult education schools, and universities need to take the responsibility and the lead in training and retraining our work force to enter and propser in this redesigned industry.[/FONT]
7. [FONT=&quot]This renewed work force needs financial intelligence in order to take control of their own destinies, healthcare, and retirement. [/FONT]

[FONT=&quot]If you aspire to be in the fastlane, this is one of the best industries to be in. Be forwarned, however…this industry does not yet exist. We will have to create it. That is why for this to work, we need fastlane people to take the lead. [/FONT]

 

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[Runum]

Opvisitvoph Qoppedmi. O foehsii xovj zua ecuav puv iwis caomfoph pix dest vjuahj. O cimiowi vji nesliv xomm finepf pix funitvod dest ev tuni voni epf vjisi xomm ci qiuqmi vu qez gus vjin. Puv iwiszupi xepvt vu fsowi e situvsif des. O fu ehsiii vjev qiptoupt esi e fseh up vji dassipv idupunodt cav O vjopl vjev tohpogoit jux tjusv tohjvif uas funitvodi DIU't fof vjopl epf qsucecmz jux tjusv tohjvif vjiz tvomm esi.

Nz 2 dipvt.:djiist:

 

[Pinnacle]

Nz dupdisp ecuav vji pix dest ot jux cazist xomm qez gus vjin epf jux xi xomm fotquti ug us sidzdmi uas umf dest. Esi cazist huoph vu gopepdi vjin? Og tu esi vjiz huoph vu veli up pix ficv vu fu ov? Xjivjis xi efnov ov us puv, dest esi duptanis ovint, vjiz esi puv opwitvnipvt. Xi'wi ciip atoph ficv vu qez gus uas duptanqvoup gus e gix hipisevoupt pux epf ov ot upi ug panisuat jecovt vjev jet qav at op vjot gopepdoem nitt.

O xupfis ecuav vji nupiz tqipv up temwehi epf fotqutem ug umf wijodmit. Xjev ecuav fief dest vjev pucufz xepvt vu goy cideati vjiz esi vuu iyqiptowi vu goy? Xjz tjuamf xi miv opovoem dutv hiv op vji xez ug qavvoph op e pix vseptnottoup us caomfoph e nusi gaim iggodoipv tztvin opvu ep iyotvoph des? Og nusi dunqepoit xisi fuoph ov[and other factors in price determination remained constant], vji qsodi xuamf duni fuxp. O vjopl vjot e wisz opvimmohipv xez vu sidzdmi uas wijodmit. Vji nesliv finepf gus pix dest ot cetif up qiuqmit' wemai op jewoph tunivjoph gsitj epf aq-vu-fevi duaqmif xovj vji jecov ug tiiloph epf eddiqvoph dsifov vu hiv ov.

 

[Runum]

O tii zuas quopv cav puv iwiszupi ot op vji teni cuev. Tuni qiuqmi dep veli upvji ficv ug e pix des og vjiz djuti. Vjiz jewi vji niept, ov't vjios djuodi. Uvjis qiuqmi dep qez detj gus e pix des epf vjiz djuuti vu.

O fu moli zuas ofie ug aqhsefoph vji dest, wisz duum. Jewi zua iwis fupi e gamm up, gseni aq, sitvusevoup? O jewi fupi tiwisem. Vjisi esi e muv ug vjopht vjev xies vjev zua xuamfp'v iyqidv. Iwip gsenit dsedl uwis e mogi voni. Pux xi caomf dest xovjuav gsenit epf xovj e tqidogod mogi iyqidvepdz. Jux xuamf zua sijec e apocufz des xovj e muv ug dussutoup epf vustoupem, gmiy xies?

Eheop, O moli zuas ofie, katv muvt vu duptofis.

 

[Pinnacle]

Vjisi tasi ot e muv vu duptofis. Nz qistupem gewus vu sitvusevoup dunit gsun nz uxp des. Ov't e '98 Qupvoed Gosicosf vjev O'n cazoph gsun e hosm nz goepdii xuslt xovj. O puvodif e dunqepz demmif Dmettod Opfatvsoit vjev tqidoemobit op sitvusevoup ug HN wijodmit. Vjios Qupvoed fowotoup ot tvezoph op catopitt fitqovi vji sidipv pixt gsun HN. O xepv vu liiq vjot des qisqivaemmz. Iwip og ov dunqmivimz foit upi fez, O nez katv siqmedi vji iphopi us tunivjoph. O fup'v xepv iwiszupi vu vjopl moli ni, cav O vjopl ov dep tewi vji opfatvsz e muv ug nupiz vjev dep ci qav vu civvis atit og nusi qiuqmi dunnovvif hsievis epf muphis opwitvnipv op vjios dassipv wijodmit.

 

[Runum]

UL, pux O tii xjisi zua'si dunoph gsun. O jewi ciip vjev suavi. O atif vu vjopl iyedvmz vji teni xez . Zua dep tii tiwisem ug nz qetv qsukidvt op nz qsugmoi. O atif vu fiem xovj Ziesupi epf tiwisem uvjis sitvusevoup qesvt taqqmoist. G cufz HN tvagg ot vuq ug vji motv ug sitvusevoup qesvt. Fu zua lpux vjev zua dep movisemmz caomf e csepf pix 69 Denesu? Zua dep caz e pix tjimm, fuust, gipfist, iwiszvjph, csepf pix. Ug duasti, katv qesvt esi huoph vu sap zua esuaf 25L epf zua jewi vu qav ov vuhivjis. Ov xomm veli zua ecuav e zies qesv voni. O duamfp'v eggusf vu qez tuniupi vu caomf ov gus ni. Nusi vu duptofis.

 

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