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Goodbye GM. A letter from Michael Moore

Discussion in 'Fred's House of Pancakes' started by lefat1, Jun 1, 2009.

  1. lefat1

    lefat1 Fat Member

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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
     
    5 people like this.
  2. daniel

    daniel Cat Lovers Against the Bomb

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    Excellent!!!
     
  3. PriusLewis

    PriusLewis Management Scientist

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    I don't agree with all of it (I seldom do with Michael Moore, with the exception of "Roger and Me"), and I believe the likelihood of any of this happening is about as real as the government admitting global warming is a fact, oil might some day run out, and that the oil companies contributed heavily to the current depression with their unprecedented profit-taking in the 4 quarters that led up to the economic collapse. But it's still a great read, and I'd love to see much of this enacted. Instead the current stockholders of GM will be raped by the US Government who will then pick up GM for a pittance, leading to the biggest flury of law suits against the government to head to the Supreme Court since the depression and the beginning of WW II.
     
  4. Zythryn

    Zythryn Senior Member

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    I don't get this. I mean with the bond holders there may be an argument, but the stock holders??
    The stock holders, without government interference, would have received ZERO last December when GM was bailed out.
    If the government had not stepped in GM would have gone into liquidation. In liquidation, as GM has more than double the liabilities than assets, common stock would get zero.
    So are you implying that because of the government interference the stock holders are getting billed:confused:
     
  5. PriusLewis

    PriusLewis Management Scientist

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    Regardless of past dividends, stockholders still currently have some form of asset in GM stock (it is worth whatever the current trading value is). Bankruptcy almost always makes common stock worthless. So the stockholders lose whatever value the stock would have had on the open market if the bankruptcy had not occurred (admittedly not much today, but better than zero).

    Once GM declares bankruptcy, the bankruptcy court will evaluate creditor claims and solicit offers to purchase the remaining assets of the company. The court will evaluate these offers and then sell the assets of the company to the bidder they deem to be the best for the creditors (and other stakeholders, such as employees if the bankruptcy is to lead to restructuring rather than ceasation of business).

    In this case Obama will petition the bankruptcy court to sell the assets to the US Government, offering to restructure the company and keep it going. If the bankruptcy court agrees to their offer and business plan, the sale will be made.

    As an aside, others could offer to pick up the assets - there could be interesting "dark horses" come out of the woodwork to make offers, such as, say, a Chinese car company wanting to get into the US market quickly and directly. Also the Bankruptcy Court may wish to challenge the legality of the US Government owning controlling interest in a public company, or may leave that issue to outside challenges which, I guarantee, will come if the Government wins this.

    The money from the sale of the assets goes to the Bankruptcy court, who then uses it to pay off creditors (but NOT stockholders) using a complicated formula to determine percentages (generally creditors end up getting some reduced percentage of the money the corporation owed them). Taxes get paid 100 pecent, then money owed employees (such as salaries not paid going into the bankruptcy), then creditors (although both employees and creditors may only get a percentage of what is owed).

    I've been through this as an employee of a company that went under, and as the COO of a corporation owed money by companies going under.

    Your Local Management Scientist
     
  6. Midpack

    Midpack Member

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    A complete idiot, as always. Sounds convincing until you separate facts (there are certainly some) from myths and missing technologies. I am surprised he didn't throw in solar, wind turbines and whirled peas too...why not?
     
  7. PriusLewis

    PriusLewis Management Scientist

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    He DID throw in solar and wind turbines:

    "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."

    But no mention of Visualizing Whirled Peas or of Saving The Wales. Also no reality check on how a factory optimized for building vehicles can immediately start making solar panels (as if the technology is identical). When they changed over for war production during WW II they had manual assembly lines that assembled parts into cars and trucks. The same exact technology would apply to Jeeps, tanks and airplanes (at the level of technology at the time). But it doesn't translate today. I guess he believes you can just reprogram a welding robot and solar panels will come out the other end of the factory.
     
  8. lefat1

    lefat1 Fat Member

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    we put man on the moon, taught the world how to make cars..dont be so surprised what americans can do if we put our minds to it.:fear:btw, whats a "wale"?
     
  9. Midpack

    Midpack Member

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    You wanna pay for 20,000 employees (at $75/hr including benefits/legacy costs) while GM mobilizes to change over production to undeveloped vehicles and other goods they aren't at all prepared to make for who knows how long? Remember, as 60% owners, it's on your dime. I feel for all those people, but this was inevitable for GM. Unfortunately it's going to take bankruptcy to transform them into anything remotely viable, but they will be successful in doing so, and that won't include Mr. Moore's unfounded pie-in-the-sky wishful thinking...
     
  10. donee

    donee New Member

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    Hi All,

    While MM makes some good proposals, I cannot help but feel it was his attitude that Roger was the problem and not the Gettlefinger of the time is nieve. Roger was constrained in that the UAW would not let them drop the wages to comparable at other non-UAW companies. So, Roger had to lay off people and make the product as cheap in man-hours as possible. And it was just coincidence that it happened in MM's hometome - Flint. The problem is that less people do less work for the same GM payrole - so layoffs are not a solution, they are the slippery slope to oblivion. Roger and all the other GM chiefs needed to get wages in-line with the rest of the industry. And they did not. Moore does not say it, but the only way to keep all his freinds working and to avoid all that human misery he speaks of was for ALL of the UAW to make individually less money. And the UAW had the power to say no to this. As we now see. There has to be a balance of product value to stake-holders gain. And there was not. Do the UAW chiefs crnge as badly as Roger would have when they saw the ex -GM employee skinning rabbits in her back yard in that movie? I wonder?


    Now I am no fan of GM managment, but I cannot help but think the MM attitude is as much as part of the GM problem as was Rick Wagoner et al.
     
  11. JSH

    JSH Senior Member

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    I've never been a big Michael Moore fan. Bowling for Columbine was OK but Roger and Me was a joke. I grew up in Saginaw, MI a GM town just north of Flint that has also been devastated by plant closures. I also lived and went to school in downtown Flint in the mid-90's. Yes, Flint has been devastated by plant closures but in my opinion the UAW has no one to blame but themselves. The first time I watched Roger and Me was during a UAW strike that shut down all of GM's operations for 3 months. A plant in Flint had gone on strike over work rules. (There contract said they would make part X and GM wanted them to make part Y. No reduction in wages or jobs, just a different part)

    I was also living in Flint when the Buick City plant shut down in 1999. Everyone knew 3 years ahead of time that the plant was scheduled for closure but no one prepared. Instead of training for another job or looking for work at another plant, people put their faith in the UAW. UAW members were sure that the UAW simply wouldn't let GM close the plant. The union failed and the plant closed. Just like in Roger and Me, the local news was showing former GM workers that didn't have jobs and no longer had insurance for their kids. These were people making $22 to $28 an hour for unskilled labor. Yes, the gravy train derailed but they had the means to prepare and save. Instead they when on as if nothing could happen and they were irreplaceable.