Goodbye, GM ...by Michael Moore

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Goodbye, GM
by Michael Moore

June 1, 2009

I write this on the morning of the end of the once-mighty General Motors. By high noon, the President of the United States will have made it official: General Motors, as we know it, has been totaled.

As I sit here in GM's birthplace, Flint, Michigan, I am surrounded by friends and family who are filled with anxiety about what will happen to them and to the town. Forty percent of the homes and businesses in the city have been abandoned. Imagine what it would be like if you lived in a city where almost every other house is empty. What would be your state of mind?

It is with sad irony that the company which invented "planned obsolescence" -- the decision to build cars that would fall apart after a few years so that the customer would then have to buy a new one -- has now made itself obsolete. It refused to build automobiles that the public wanted, cars that got great gas mileage, were as safe as they could be, and were exceedingly comfortable to drive. Oh -- and that wouldn't start falling apart after two years. GM stubbornly fought environmental and safety regulations. Its executives arrogantly ignored the "inferior" Japanese and German cars, cars which would become the gold standard for automobile buyers. And it was hell-bent on punishing its unionized workforce, lopping off thousands of workers for no good reason other than to "improve" the short-term bottom line of the corporation. Beginning in the 1980s, when GM was posting record profits, it moved countless jobs to Mexico and elsewhere, thus destroying the lives of tens of thousands of hard-working Americans. The glaring stupidity of this policy was that, when they eliminated the income of so many middle class families, who did they think was going to be able to afford to buy their cars? History will record this blunder in the same way it now writes about the French building the Maginot Line or how the Romans cluelessly poisoned their own water system with lethal lead in its pipes.

So here we are at the deathbed of General Motors. The company's body not yet cold, and I find myself filled with -- dare I say it -- joy. It is not the joy of revenge against a corporation that ruined my hometown and brought misery, divorce, alcoholism, homelessness, physical and mental debilitation, and drug addiction to the people I grew up with. Nor do I, obviously, claim any joy in knowing that 21,000 more GM workers will be told that they, too, are without a job.

But you and I and the rest of America now own a car company! I know, I know -- who on earth wants to run a car company? Who among us wants $50 billion of our tax dollars thrown down the rat hole of still trying to save GM? Let's be clear about this: The only way to save GM is to kill GM. Saving our precious industrial infrastructure, though, is another matter and must be a top priority. If we allow the shutting down and tearing down of our auto plants, we will sorely wish we still had them when we realize that those factories could have built the alternative energy systems we now desperately need. And when we realize that the best way to transport ourselves is on light rail and bullet trains and cleaner buses, how will we do this if we've allowed our industrial capacity and its skilled workforce to disappear?

Thus, as GM is "reorganized" by the federal government and the bankruptcy court, here is the plan I am asking President Obama to implement for the good of the workers, the GM communities, and the nation as a whole. Twenty years ago when I made "Roger & Me," I tried to warn people about what was ahead for General Motors. Had the power structure and the punditocracy listened, maybe much of this could have been avoided. Based on my track record, I request an honest and sincere consideration of the following suggestions:

1. Just as President Roosevelt did after the attack on Pearl Harbor, the President must tell the nation that we are at war and we must immediately convert our auto factories to factories that build mass transit vehicles and alternative energy devices. Within months in Flint in 1942, GM halted all car production and immediately used the assembly lines to build planes, tanks and machine guns. The conversion took no time at all. Everyone pitched in. The fascists were defeated.

We are now in a different kind of war -- a war that we have conducted against the ecosystem and has been conducted by our very own corporate leaders. This current war has two fronts. One is headquartered in Detroit. The products built in the factories of GM, Ford and Chrysler are some of the greatest weapons of mass destruction responsible for global warming and the melting of our polar icecaps. The things we call "cars" may have been fun to drive, but they are like a million daggers into the heart of Mother Nature. To continue to build them would only lead to the ruin of our species and much of the planet.

The other front in this war is being waged by the oil companies against you and me. They are committed to fleecing us whenever they can, and they have been reckless stewards of the finite amount of oil that is located under the surface of the earth. They know they are sucking it bone dry. And like the lumber tycoons of the early 20th century who didn't give a damn about future generations as they tore down every forest they could get their hands on, these oil barons are not telling the public what they know to be true -- that there are only a few more decades of useable oil on this planet. And as the end days of oil approach us, get ready for some very desperate people willing to kill and be killed just to get their hands on a gallon can of gasoline.

President Obama, now that he has taken control of GM, needs to convert the factories to new and needed uses immediately.

2. Don't put another $30 billion into the coffers of GM to build cars. Instead, use that money to keep the current workforce -- and most of those who have been laid off -- employed so that they can build the new modes of 21st century transportation. Let them start the conversion work now.

3. Announce that we will have bullet trains criss-crossing this country in the next five years. Japan is celebrating the 45th anniversary of its first bullet train this year. Now they have dozens of them. Average speed: 165 mph. Average time a train is late: under 30 seconds. They have had these high speed trains for nearly five decades -- and we don't even have one! The fact that the technology already exists for us to go from New York to L.A. in 17 hours by train, and that we haven't used it, is criminal. Let's hire the unemployed to build the new high speed lines all over the country. Chicago to Detroit in less than two hours. Miami to DC in under 7 hours. Denver to Dallas in five and a half. This can be done and done now.

4. Initiate a program to put light rail mass transit lines in all our large and medium-sized cities. Build those trains in the GM factories. And hire local people everywhere to install and run this system.

5. For people in rural areas not served by the train lines, have the GM plants produce energy efficient clean buses.

6. For the time being, have some factories build hybrid or all-electric cars (and batteries). It will take a few years for people to get used to the new ways to transport ourselves, so if we're going to have automobiles, let's have kinder, gentler ones. We can be building these next month (do not believe anyone who tells you it will take years to retool the factories -- that simply isn't true).

7. Transform some of the empty GM factories to facilities that build windmills, solar panels and other means of alternate forms of energy. We need tens of millions of solar panels right now. And there is an eager and skilled workforce who can build them.

8. Provide tax incentives for those who travel by hybrid car or bus or train. Also, credits for those who convert their home to alternative energy.

9. To help pay for this, impose a two-dollar tax on every gallon of gasoline. This will get people to switch to more energy saving cars or to use the new rail lines and rail cars the former autoworkers have built for them.

Well, that's a start. Please, please, please don't save GM so that a smaller version of it will simply do nothing more than build Chevys or Cadillacs. This is not a long-term solution. Don't throw bad money into a company whose tailpipe is malfunctioning, causing a strange odor to fill the car.

100 years ago this year, the founders of General Motors convinced the world to give up their horses and saddles and buggy whips to try a new form of transportation. Now it is time for us to say goodbye to the internal combustion engine. It seemed to serve us well for so long. We enjoyed the car hops at the A&W. We made out in the front -- and the back -- seat. We watched movies on large outdoor screens, went to the races at NASCAR tracks across the country, and saw the Pacific Ocean for the first time through the window down Hwy. 1. And now it's over. It's a new day and a new century. The President -- and the UAW -- must seize this moment and create a big batch of lemonade from this very sour and sad lemon.

Yesterday, the last surviving person from the Titanic disaster passed away. She escaped certain death that night and went on to live another 97 years.

So can we survive our own Titanic in all the Flint Michigans of this country. 60% of GM is ours. I think we can do a better job.

Yours,
Michael Moore
[email protected]
MichaelMoore.com
 
Half of that article is a bunch of pie in the sky ideas. I take everything Michael Moore says with a grain of salt. Reading thorugh his 9 point list raises some serious questions.

Sorry, just venting.....
 
All ideas should be considered on their own merit.
Moore has pointed a finger at the transport systems of his country, and he has reason to do so.

Before you all point and laugh at him, then get into your cars to drive home, just use some of that time that you're spending staring at the car in front of you to consider how different life would be with a different mode of transport.
 
It is not the joy of revenge against a corporation that ruined my hometown and brought misery, divorce, alcoholism, homelessness, physical and mental debilitation, and drug addiction to the people I grew up with.

How did GM manage this? :confused:
 
Half of that article is a bunch of pie in the sky ideas. I take everything Michael Moore says with a grain of salt. Reading thorugh his 9 point list raises some serious questions.

Sorry, just venting.....

I take everything he says with a whole pot of salt.
 
I also don't like most of his docies, but he is talking sense here. :)
 
"Based on my track record, I request an honest and sincere consideration of the following suggestions"

Shut the **** up, pleeeeeze! Someone who feels he has to say that has really, REALLY got to find another profession. Maybe he should go work for GM. They might take him more seriously there.

However, bluno is right. The Yanks have already taken a sucker punch. This one was a straight kick to the balls. GM was the All American Company. Part of the American Dream. All the Italians and Asians were going "Jaja, eat burger and drive GM!" when flocking to America like flies to poo all those years ago.

And, in the words of Henry Hill, now it's all over.
 
Significance of GM bankruptcy

Here's today's Stratfor Quick Report on the GM bankruptcy. Some interesting figures on the US economy and manufacturing put a perspective on this event - the US is far from 'over':

U.S. auto giant General Motors filed for Chapter 11 bankruptcy on Monday, ending a period of U.S. dominance in automotive manufacturing that began when the first Ford Model T rolled off the assembly line in Detroit. In the United States and around the world, GM’s collapse is being viewed as yet another harbinger of doom — at least the third horseman of the apocalypse (right behind the collapse of Lehman Bros. and mounting government deficits) foretelling the end of U.S. hegemony — and as “proof” that American manufacturing capacity and industrial prowess is rotten to the core.

The collapse of GM is certainly not to be taken lightly, and its political, social and economic ramifications are serious. The U.S. “Rust Belt” has been rusting since essentially the late 1960s, and the collapse of what was once a manufacturing powerhouse certainly will erode it further. Some 21,000 employees (around 34 percent of GM’s total work force) are looking at layoffs. The 780,000-plus workers in the automotive parts industry are facing uncertainty, as their industry will be affected by the collapse. Then there are the serious effects that the end of GM will have for businesses that are not related to, but nevertheless dependent on, the automotive sector. According to estimates from the auto parts industry, 4.7 jobs — in everything from catering to regional banks — are created for every one job in the motor vehicle parts industry.

This is undoubtedly a social and economic concern. From a geopolitical perspective, however, it is far from upsetting the main foundations of U.S. hegemony.

First, American industrial prowess remains unrivaled in the world. In 2006, U.S. industrial production equaled $2.8 trillion — the largest in the world, more than double that of second-place power Japan, and more than the production of Japan and China combined. The collapse of GM, the symbol of American manufacturing might, will not put a dent in this industrial output.

In terms of value added from the United States’ entire industrial output, the automotive sector (counting both the suppliers and automotive manufacturers) accounted for only 5.54 percent. Motor vehicles alone accounted for just 2.49 percent, with the rest roughly representing auto-parts manufacturers’ shares. Computer and electronic products, by contrast, accounted for 7.64 percent, non-transport machinery (such as capital goods) accounted for 5.01 percent and aerospace accounted for 3.26 percent. In fact, if computers and electronics are combined with other “high-tech” manufacturing categories (such as communication equipment; aerospace; semiconductor and other electronic components; navigational, measuring, electromedical, and control instruments; and other electrical equipment), they account for more than 20 percent of total U.S. industrial output.

Nevertheless, automotive manufacturing does account for the majority of manufacturing jobs — 4.5 million of them nationwide. And according to the Center for Automotive Research, automotive manufacturing provides more jobs than any other sector in seven states (Indiana, Kentucky, Michigan, Missouri, Ohio, South Carolina and Tennessee).

However, manufacturing as a whole has played a declining role in U.S. employment, despite a steady and regular rise of the industrial production index, which calculates real industrial output. The reason for this is the rise in labor-saving technological advances. For the U.S. industrial sector, this means that between 1979 and 2009, industrial output roughly doubled, but the labor force engaged in manufacturing dropped from 21 percent in 1979 to just over 9 percent in 2009. Basically, the U.S. industrial laborer has become four times more efficient than his or her counterpart in the 1980s.

The fact is that U.S. industrial output has been increasing along with the productivity of the American worker. The switch to more specialized and high-tech manufacturing jobs has facilitated that shift, and the collapse of the automotive manufacturing sector simply represents the culling of the least-efficient sector of American manufacturing. Highlighting that shift, GM was replaced in the Dow Jones Industrial Average — a key index for the U.S. industrial sector — by Cisco Systems, a manufacturer and designer of complex networking and communications technology.

The culling of jobs in the automotive sector will be extremely difficult. It will present a social, demographic and economic challenge that could define the next decade of American politics. However, from a geopolitical perspective, the United States is losing manufacturing capacity in a technology that has been mastered by almost every current, rising and future global player.

Whereas automotive manufacturing once signaled one’s “arrival” on the geopolitical scene — which in part explains a plethora of car manufacturers from Serbia to Colombia — it no longer represents a monumental technological achievement. Future economic competition will be based on the ability to master computer, communication, robotic, space travel, and nuclear technology (with potentially other, unforeseen technologies becoming part of the mix as well).
Source: Strategic Forecasting
 
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