A7

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

Speak Up

Mr. Lushington, i have never taken to newspapers to express my opinion, however this week in Grains of sand, your article entitled Pity the poor auto industry has touched me personally therefore i feel compelled to respond.

The global credit crisis has now placed the auto industry front and center in economic discussions in the United States and Canada and indeed worldwide. You have to remember that it is not the auto industry that has been at the root of this issue. So then, how did the industry get to needing loans to keep operating? How is it that we suddenly appear to have literally hundreds of thousands of jobs at stake? First let me provide you with some information as to what General Motors have done.

At General Motors, aggressive planning has been in place since early 2000, in the way of capacity reduction — 14 of 67 plants closed by 2009, employment rightsizing-reduced by 60,000 employees since 2005, labor cost, Two-Tier agreement with UAW. There were industry-leading quality awards from JD Powers.

General motors warranty repair cost are down 40 per cent from 2002 to 2006, plus an industry leading 14 per cent reduction in 2007, a true indicator of the quality improvements made. By 2009, GM will offer more hybrid vehicles than any other manufacturer. GM does more research and development in Canada than the rest of the auto industry combined.

On the sales side, the Japanese don't have a lock on the small car business. GM Canada sells the most small cars of any auto manufacturer. Plus, in Canada, more than half of the new vehicles sold come from the "Big Three". To me that hardly seems like they are not building what customers want.

GM Hybrid vehicles include the Chevy Malibu, Saturn Aura, Vue and by 2009, GM will offer two-mode hybrids on Tahoe/Yukon, Escalade, Silverado, Sierra and many more. By 2010 the Chevy Volt will set the standards for the first extended range electric vehicle. GM leads the industry in Ethanol Flexfuel compatible vehicles with 11 models to choose from. Other technical advancements include, Active Fuel Management, six-speed transmissions, direct fuel injection, variable valve timing. With regards to safety related components, General Motors invented the airbag, ABS brakes, stability control, Onstar, seatbelts and so many other innovations that are now taken for granted and shared with other auto manufactures, including the Japanese ones.

The auto sector contributed $25 billion to the Canadian GDP in 2007. Auto exports in 2007 were $70 billion, second largest export after gas and oil.

General Motors employs 15,000 with over 700 dealerships across Canada. GM purchases $16 billion of parts in Canada.

The situation that the Big Three find themselves in was not caused like you say by mismanagement. Put simply, while GM and others have invested in massive change, the sudden credit crisis leaves companies without access to the cash and credit needed to ride out what has become the worst US market decline in the last 25 years. Contrary to what is printed in the media, the automotive industry is asking for a fully-repayable government-backed loan, not a "bail out", like some industries are looking for.

Mr. Lushington, our company alone, Lounsbury Automotive, has been in existence since 1878. We employ just under 400 people throughout New Brunswick, 30 here in Dalhousie. Along with most other new car dealers, we consider ourselves good corporate citizens, doing business while helping our communities grow and prosper. Without naming anyone, many well-known and respected car dealers in this area have been and remain involved in their respective communities. That is far from being arrogant and ignorant, sir.

Mr. Lushington, I understand your concern, while I disagree with most of your comments, and I will quote from an article that appeared in a western newspaper in response to another article entitled, Bailing out automakers would just be wrong, and it goes like this, "It is harmful for pundits to malign the domestic auto industry, for the sake of a column, because of their disdain for the industry's top executive". Mr. Lushington, as a former student of yours, I have always admired your love of nature and your interests in the preservation of our environment, which prompts me to think, "If you would have been around in the time of the Dinosaurs, would you really have just stood there and done nothing, and let them pass into extinction?" I don't think so.

Thank you and in hoping that soon all auto top executives will trade in their fuel-guzzling private jets for the new 2010 Chevrolet Volt extended range electric car. I suggest that you visit www.gmfactsandfiction.com

Clarence Aube

General Manager

Lounsbury Automotive

Dalhousie