
DETROIT — While the auto industry's push for government aid is gaining steam in Washington, a lot of Americans don't think bailing out the industry should be one of President-elect Barack Obama's economic priorities.
According to a USA TODAY/Gallup Poll, 47% of adults believe "providing loans and other help" to auto companies is "not very important."
"Most people do not understand the ramifications of a collapse within the U.S. auto industry," says Dennis Virag, president of Automotive Consulting Group. "They see GM, Ford and Chrysler, but they don't understand the relationship and the total size of the problem with regard to not only the three automakers, but their full supply base, their support structure and all of the dealers."
Oh I think we understand.
And I think the American consumer is tired of taking it in the rear from a bloated and unmanageable beast of an auto industry. All I have to do is recall the last time I financed a car at my local Ford dealership.
Let's share shall we?
We went in with a 1996 Windstar loaded to the hilt with every feature except leather. We had been at the dealership at least 5 times for repairs. Twice for obviously malfunctioning anti-lock brake system. It failed so badly one time it locked the brakes and caused me to hit my head on the steering wheel. When we asked them to fix it we got the, "we couldn't find anything wrong answer" TWICE. Three times we asked them to fix the malfunctioning windows which would spontaneously roll down and up as they pleased. And each time we got, "we couldn't find anything wrong". So when we decided to trade it in to get a newer car. The dealership told us the minivan which blue booked at 7500$ was worth only 1500$ and they would not budge. We owed 4000$ on it. So we took it in the shorts from the finance guy who was more than happy to finance that 4000 on a new loan.
Could we have gone to another dealership, probably. But when you don't have a lot of time to shop around you get what you take. We didn't have the leave time from our jobs to take the minivan to OKC for repairs and shopping for a new car. And the market would not bare being bloated with worthless minivans. So the value of said minivans was crap.
The business practices of yesterday will not work today. They cannot continue to pay out the levels of benefits they have been hamstrung with from the United Auto Workers. The days of getting paid 25$ an hour to push a broom are well over.