Obama, Bailout, and the Evil Three

First, lets make this clear — this article is written by someone who lives and breathes the automotive industry. I work for DENSO, an automotive parts manufacture (I inspect the electrical systems, or PCB’s as we call them, to ensure quality).

With that finally out in the open, let me say I am turn on this issue. Obviously, I don’t want the automakers to go away. Without customers, DENSO would be in trouble (although most of our boards do come from Korean or Japanese automakers, most of the parts I inspect are from GM or Ford, then comes Toyota. Less work for me to do, then less of a reason to keep me and my department, right?) See, this is where I am turn with the issue.

On one hand, I know they wont go away. They would, without government intervention, file bankruptcy, renegotiate contracts (mainly unions) and basically continue doing business. Problem is, however, they could renegotiate our contracts (chances are unlikely, its not a quick process) but if something were to happen and our quality went down or prices go up, what would happen to DENSO? Would we loose a customer or what? I really can’t answer this question, but I know that my company shouldn’t be too much in trouble; but there are smaller companies who do have to worry about this. Who only make Ford or GM or Chrysler parts, and the only customers they have to rely on are the ones who are in need for money. But banks aren’t giving money right now, so what are we to do?

That’s the real problem here, because DENSO could always take on more clients (hell, I hear the Mexico branch has plenty of space and they only make like a dollar an hour, too) and the Big Evil Three could always just say, “Screw you small company who employs thousands of people, we are going to DENSO”. You’d think DENSO or the company the three go to would hire more people, but thats not how they think. They think how can we do this with few amounts of people? How can we do it spending less money?

So, if the Big Evil Three go down, it could potentially take more with them. Now what does Obama say, exactly? In a nut shell, don’t screw over the auto industry and don’t let them fail. Behind the scenes, Obama has been talking about things they can do both before he is sworn in and after to help with this situation. For those who wish Obama would do more, remember, we have a President, and he is not Obama. Neither is Obama a Senator anymore, he is the President-Elect and that is it. There really isn’t much he can do anymore.

Most of this information is either from my own knowledge or from CNN.com.

Published in: on December 5, 2008 at 11:08 pm  Leave a Comment  

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