Money Management - Big 3 Auto Makers Are On The Road to Nowhere
The scramble continues for part of the cash out of American taxpayers pockets in the form of the ever growing fiscal Bailout Bill. The latest to come hat-in-hand to the government for a handout are the Big 3 auto makers, Chrysler, Ford and GM – General Motors. The question is this. Should they get a handout? Not from a national money management perspective according to one financial expert.
“In my opinion giving General Motors, Chrysler and Ford billions of dollars would make the problem worse,” says nationally recognized money management expert and financial consultant Sandra Simmons. “These companies are dinosaurs who ceased to be innovative in their product design and ceased to create high quality products that Americans would be happy to own,” she says. “Citizens who, 20 years ago, would never have considered owning a “foreign” car, are abandoning their stance and switching in droves to the higher quality, innovative products of the foreign car makers.”
Simmons knows a thing or two about salvaging companies. She has an extremely successful track-record in terms of turning around financially ailing companies and corporations. But Simmon’s philosophy is never throw money at a problem without knowing with certainty what the real source of the difficulty is. Throwing money at a problem is a knee-jerk reaction that runs rampant in virtually all levels of business and corporate think - and it is especially true when the government gets involved.
“One thing can be proven by looking at what is happening in industries like the Big 3 auto makers. If you reward out-ethics and non-production, you get more of the same. Chrysler, Ford and General Motors have great workers, but their management are dinosaurs who are in it for the dollars,” she says. “They have long avoided making the tough moves to re-tool into high-quality and innovative products that would have kept them competitive with the foreign car manufacturers.”
According to Simmons, if the government dumps billions of dollars into these sick and dying dinosaurs, they will have no reason to change and will just keep doing the same thing they have done and getting the same poor results. One has to ask the question why the foreign auto companies, Honda, Toyota and Nissan in particular, seem to be doing relatively well despite the economy. Yes, their overall sales have been affected by the economic slump, but they are nowhere near needing a bailout by the government.
What’s the difference in philosophy that is causing the Big 3 to fail?
“They have always counted on Americans to blindly BUY AMERICAN whether the quality was good or poor,” states Simmons. “Well, those days are gone and Americans have lost their blind allegiance to inferior quality and design. A better move would be to let the car companies file bankruptcy, reorganize, and be forced into making higher-quality, competitive products that Americans would once again be willing to buy.”
An essential aspect of any good money management strategy is identifying those things that produce good return on investment, and also identifying those things that don’t. This is true for both the macroeconomic and microeconomic applications. In other words, it doesn’t matter is you are running a world sized government, or a household, the principles are the same: find out what is brining in the income and put resources into that. Unfortunately, the Big 3 aren’t even close to having that conversation. They just seem to have their hand out and are asking the American taxpayer to take an enormous leap of faith.
No one wants to see the U.S. Auto industry fail, but clearly something is wrong, and no clear, straightforward answer seems to be forthcoming from corporate heads or politicians. It also begs the question, would any of us be eligible for some kind of loan based upon a similarly vague business plan? The answer is pretty obvious.
“The American auto makers have great workers. It’s the management that has to go. The reorganization should bring in a new group of management that is willing to do whatever it takes to bring these companies back to life and able to compete,” Simmons says. “General Motors, who has major government contracts to produce parts, should spin off that division and let it operate on its own as the cash cow it is, and let the auto arm sink or swim based on its own performance. That would at least force the shareholders, the management and the public to see the auto division in the harsh glare of reality and perhaps force it to make the necessary changes to survive.”
“In a recent radio talk show interview, it was said that one of the senior management of General Motors has already refused to resign, contending that in these times it is necessary to have good strong management leading the company,” she says. “It is precisely this manager and the others in office in these companies who have led them down the track of self-immolation. They should be forced to resign and make way for some new innovative thinkers who truly care enough to do whatever it takes for these companies to live or die by their own actions, without a government / taxpayer handout.”
There are, of course, many, many other industries and corporations who, in following a flawed money management philosophy, are in dire straits and failing just like the Big 3. But Simmons is doing her best to get the word out. She is currently criss-crossing the country giving lectures and seminars to businesspeople interested in turning around their financial fortunes.
Money can be made even in the worst of times, she contends, and, as she points out, more millionaires were made during The Great Depression than during any other time in U.S. History. Her next seminar is scheduled for December 13th in the Tampa/Clearwater, Florida area for all those who would like to attend.
For more information please contact Sandra Simmons at 727-448-1011 or email her at seminar@moneymgmtsolutions.com. Or visit the website at www.MoneyMgmtSolutions.com.
Sandra Simmons
Founder and President, Money Management Solutions, Inc.
Sandra Simmons was educated at Virginia Commonwealth University. She spent the early years of her professional career working for major advertising agencies and Fortune 500 corporations in executive marketing management positions, winning the prestigious advertising Addy Award in 1983. In 1995 she opened her own business, Money Management Solutions, Inc., with the goal to provide business owners worldwide with a software tool for real financial planning and wealth building. Ms. Simmons is now recognized as one of the leading experts in the field of money management and financial consulting and her wealth and financial freedom seminars are enthusiastically received all around the country. Since starting her company, she has established an outstanding track record in turning companies around who were struggling financially. Her objective in developing the Money Management Solutions software was to provide business owners and health care professionals with the cash flow management program from this business management system. Nothing thrills her more than to see people achieve their financial planning and wealth building goals by using this program.