Demand Regime Change

What appeared unthinkable as little as two weeks ago now appears to be a near-term reality. Apparently, all the Congressional posturing has been the slight-of-hand precursor to a bailout of the Big Three.

Reading the Financial Times, I see that we’re apparently making $15bn available.

I’m not going to waste any time opposing this based on the ideals of capitalism or evolution. Make no mistake, this isn’t about Ford, Chrysler, or GM. Our government seems to have anointed anything as big as the AIG, or the UAW to be Too Big to Fail.

I am also not going to argue that the American People, through the instrumentality of the Federal Government, ought to take an equity stake in these troubled organizations. If you wouldn’t buy shares in these bungling operations, then why should our National Proxy?

And, I am not going to say this is too much money because it isn’t nearly enough.

Lastly, I am not going to argue that this is unfair to the automakers that have managed their ventures profitably. No one wants to hear about what is fair or just.

I am going to suggest that what our government should extract in return for the bailout is Regime Change at Ford, Chrysler, and GM.

Please join me by calling, writing or emailing your congressional representative and telling them that Rick Wagoner (GM), Robert Nardelli (Chrysler) and Alan Mulally (Ford) AND their senior management teams, need to go before they vote to approve the bailout package.

Why?

Does anyone swallow the argument that the recent fuel price crisis, and now the credit crisis have caused these otherwise well-managed businesses to suddenly become unprofitable?

Do you really think that the same CAFE standards that seem to give Nissan, Toyota and Honda a competitive advantage somehow hamstring the Big Three?

Can CEOs so out of touch with the people they sell to, or lead and manage - that they would take one of the Corporate Jets to Congress for a bailout, have the judgment to run a company Too Big to Fail?

Bottom-line: We’re throwing money down a rat-hole. It isn’t a loan. It won’t be enough. Without massive restructuring it won’t even matter in six months. It will only prop up the inevitable. And worse, it will embolden the Airline Executives who will be at the Congressional Teller Window next …

So, if we really are proffering $15bn to prop up these clumsy, incompetent, and ham-fisted outfits, we ought to at least get bold, new leadership for our money.

Maybe we could attract senior leaders from Nissan, Toyota and Honda into those jobs.

Perhaps new CEOs could put together insightful senior management teams who will take care of the little things, like production capacity to match real demand.

Maybe we’ll even ignore the weeping, wailing and gnashing of teeth we’ll hear while they do what needs to be done.

After all, it’s the Christmas Season – a Season of Miracles! I can dream, can’t I?