The performance by the Detroit 3 execs in Washington last week was miserable. Absolutely pathetic. Beside the very predictable PR disaster with the private jets, and the very obvious realtime disaster of not budging on their salaries, they had no plan for using the money they were asking for. No. Plan. These guys run billion dollar companies?
My interest in bailing them out went down substantially, and so did that of Congress.
Apropos to the testimony, though it is obvious that the downfall of the Detroit 3 down is primarily a management failure, it's nice to find this supporting anecdote from Bob Sutton.
Well-known banking industry researcher Chris Whalen mentions auto-related CDS in this long post.
The $70 dollar per hour lie (yes, L-I-E) is circulating again. Felix Salomon shoots it down here. Folks, it's not hard to differentiate between compensation and overhead.
Update: A contrast between how the Detroit 3 and Toyota value their employees can be found here.
Update: A premier bankruptcy expert weighs in on restructuring here.
Update: The views of two auto industry experts are similar to mine.
Update: A detailed look at the 2007 labor agreement shows that the UAW made significant concessions (mostly at the expense of new workers, however).
Update: A veteran Japanese auto exec gives his views on the Detroit management culture.