lisasong.com

Just some interesting facts:
1. The big three at first asked for $34 Billion loan. Congress ready to dish out $15 Billion. Their total market cap? $14 Billion.
2. The big three’s manufacturing capacity is 17 million cars. In 2007, Americans bought only 14 million cars (domestic and foreign).
3. Ford pays, on average, $71 an hour to its workers. The Japanese U.S. plants pay $49/hr. Source see NYT.
4. The auto sale declined the most when gas price peaked after summer. Recently, there is a sales rebound despite poor economy. Trucks rebounds the most. Small cars may actually declined.

Thoughts:
- Undoubtedly the auto industry will shrink and restructure. However,
- The current difficulty is largely due to past sins. In terms of cost structure, the auto industry may be on the rebound. (in Ford, new employees are paid $53/hr)
- The auto industry lacks the vision and business foresight? Well, how about blaming “the American Dream” for a change? How many Americans can stand up and say, “I had nothing to do with this”?

Said a lot more yesterday. But I’d better stick to what I know