Big Three ready survival plan for Congress

However can't argue that these companies have been horribly managed. Can't wait for the verdict

Auto Industry Impact on the U.S. Economy • Nearly 4% of the U.S. GDP is auto-related • One out of every 10 U.S. jobs is auto-related • Accounts for $690 billion, or about 20% of all U.S. retail sales • Generates more than $10 billion of annual tax revenue • Largest purchaser of steel, aluminum, iron, copper, plastics, rubber and electronic chips • Second only to the semiconductor industry in R&D spending

GM’s Contribution to the U.S. Economy • Directly employs approximately 96,000 people • Has 6,500 dealers across the country who employ another 340,000 people • Provides pension benefits for nearly 475,000 retirees and spouses • Extends health care benefits to about 1,000,000 people • Purchased in 2007, $30 billion of goods and services from 2,000 suppliers in 46 states • Sold 22 million vehicles in the last five years that have more domestic-parts content than Honda and Toyota Learn more at gmfactsandfiction.com View a video at youtube.com/watch?v=72cHfOKoA1c

Changing for the Better • GM negotiated a landmark labor agreement with the UAW in 2007 that will enable us to match labor costs with foreign automakers by 2010 and virtually erase the competitive gap • 11 of GM’s last 13 new vehicle launches have been cars and crossovers, and 60% of our capacity will be dedicated to these vehicles by the end of 2010 • GM leads in manufacturing productivity in 11 out of the 20 North American segments in which it competes (2008 Harbour Report) and has 5 of the top 10 best rated engine plants in North America and the #1 transmission plant • In the 2008 J.D. Power Initial Quality Study, GM had more segment leaders than Toyota or Honda •GM have reduced warranty repairs by 40% over the last five years •GM is targeting fuel economy leadership in every class of vehicle we introduce and GM has 20 models that get at least 30 MPG highway, based on 2009 EPA estimates – that’s twice the number of our nearest competitor • GM is making a major commitment to hybrid cars and trucks and offers nine hybrids for 2009 • GM is a world leader in biofuel vehicles with more than 3 million flex-fuel vehicles on the road in the U.S. and has committed to make flex-fuel vehicles 50% of annual volume by 2012 •GM has established the world’s largest hydrogen fuel-cell test fleet here in the U.S. •GM is working to bring the Chevy Volt extended range electric vehicle to market by November 2010. Volt is designed to move 75% of America’s daily commuters without using a single drop of gas!

Back in the late 90's, Ghosn of Nissan/Renault was faced with potential bancruptsy when he took over. He led the transformation of the not just the people and business, but more importantly, he wanted the Nissan product to really stand out above the competition. That to me is what's still lacking with the Big 3. They've done a great job of catching up, but they haven't tried to surpass the imports in any meaningful way.

That's why I'm glad Congress is being tough and taking a decisive stand. If these executives want the help of the American public, they need to humble themselves. Start with salary and compensation - yes, these are "in-line" with what other execs get but maybe that's too high for what we are getting from the execs. Also, put them on the same pay-for-performance standards that normal people like us have to face. Why should they continue to get pay raises and bonuses when their companies are floudering?

And while they're at it, clean up their dealerships. I went to three metro Chevy dealers in the past year to look at a Malibu. The sales staff were not very attentive, they didn't seem to know much about the product (without thumbing through a manual) and one dealership reeked of cigarette smell (and we're a state with no smoking allowed inside businesses). I have yet to experience anything this bad at an import delear.