You might think that so far as some people in Washington are concerned, Detroit
doesn’t exist. Admittedly, the state political leaders within
Michigan made the state less relevant than it otherwise might
have been by conducting the presidential primary elections far
earlier than the national committees said was permissible. But
be that as it may, the various candidates have done not much more
than drive-bys vis-à-vis Detroit. You would almost think
that the auto industry is trivial so far as the state of the
Union goes. And let’s not
forget the cavalier way that President Bush treated the Big Three
with his comment regarding the relevance of the product they’re
producing.
While certainly not endorsing the man, I was happily
surprised to hear John McCain say something nice about General
Motors in his March 25 speech on the housing crisis. Or more
accurately, the mortgage crisis. The consequences of that aren’t
limited to foreclosures and the like. It has had an effect on
vehicle sales, as well. Take that crisis and add in the
seemingly inexorable rise of prices at the pump, and the result
is a likely situation wherein vehicle sales will be way, way down
this year. This, of course, will have a further negative effect
on things like jobs, which then will lead to. . . . Yes, you get
it.
Anyway, back to John McCain’s speech. Like a good
Republican, he said that he’d want to keep government at arm’s
length, more or less, as regards involvement. Rather, he is in
support of the private sector dealing with the issues. McCain
stated:
“We should also convene a meeting of the nation’s top
mortgage lenders. Working together, they should pledge to
provide maximum support and help to their cash-strapped, but
credit-worthy customers. They should pledge to do everything
possible to keep families in their homes and businesses growing.
Recall that immediately after September 11, 2001, General Motors
stepped in to provide 0 percent financing as part of keeping the
economy growing. We need a similar response by the mortgage
lenders. They’ve been asking the government to help them out.
I’m now calling upon them to help their customers, and their
nation out.”
On September 19, 2001, GM announced its program called “Keep
America Rolling,” which provided 0% financing on cars and trucks
for 36 months. Then-GM president for North American Operations
Ron Zarrella said, “Throughout its history the automotive
industry has played a leadership role in our economic strength.
This program is in part in response to the Administration’s
request to American business to support and aid nationwide
efforts focused on economic recovery.”
He acknowledged, “We know this is a difficult time to talk
about an incentive program, but GM has a responsibility to help
stimulate the economy.” And GM stepped up to it.
And I wonder: What’s the responsibility that
U.S. government
leaders have when it comes to helping stimulate the domestic auto
industry?