Saving Detroit

" gonna help the auto industry. It's going to be the auto industry first going to be you and me where they leave you get that hand down our our wallet and suddenly. They've got 25 billion dollars -- yesterday. Mitt Romney. Wrote an article that appears in today's New York Times and he talks about -- what and when my dad before he became a politician. My dad actually -- American. Motors. Which of course rambler and then eventually became G. And when his father took over they were so close to bankruptcy his father went up the plants talk to people said this won't going to have to do it turned that company around. He says that's what's gotta happen. Right now we've Detroit he says he when he went to business school they were still talking about his father as a model exactly right how they did it they don't -- check they need a turnaround."

" Here's what he writes in today's New York Times of General Motors Ford and Chrysler get the bailout that their chief executives asked for yesterday. You can kiss the American automotive industry goodbye. It won't go overnight but its demise will be virtually guarantee that is very strong coming from someone who knows the industry inside out."

" Yeah is it and maybe should be in charge of it quite taxi because he's been a turnaround king in many other we had a chance including the Olympics. But maybe Mitt Romney -- would be a good person to be consulting right now so pay attention three automakers read this editorial in the New York Times they -- one of the things he says he has several prescriptions. For Detroit's automakers one of them of course is to reduce the total burden put on these companies. With these huge retirement packages the numbers the extra burden estimated to be more than 2000 dollars per car. So he gives an example of the Ford Taurus they need to cut 2000 dollars worth of features and quality. Out of their tourist to compete. With Toyota's Avalon. A similar car that the 2000 dollars per card that's a lot trust me I know because I come from a family car dealers -- making money selling new cars anymore."

" What if they lose money on every car they manufacture. If you lose money doing the very thing which you exist you have to go out of business at some point it's a poor business model if you're losing a thousand bucks on every copy eventually you're gonna need to do what Bob Nardelli in this CEO of Chrysler -- Go up to Capitol Hill yesterday with hat in hand and asked for that though here's senator Shelby. And that's a little give and take as we look at the top of the judges had -- that. Sorry that's a beautiful hair."

" We would assume that -- that just like with the investor not mean that taxpayers taxpayers. Yeah how would you pay the money back because we will generate profit. And we will have to return that and just as will pay our debt down from our investors we would pay it back to what if you don't them. No sir we we wouldn't be here today asking for this if we didn't have high confidence level group that we could. Whether this economic trough. Continue to re size. Make these gut wrenching decisions to come out the other side leader more Agile and for us a higher quality higher reliable product."

" it -- a question but a lot of the gut wrenching decisions of which he speaks. He can't make outside of bankruptcy because they are locked country contracts with the unions they have wheelers and dealers in bankruptcy a federal judge him. It has the authority to modify those agreements so that the company can be profit."

" Plus a look at some of the ramifications of that the hourly rates plus benefits for General Motors cars 78 dollars for those workers versus Toyota. At only 35 dollars for finishing point from the Mitt Romney prescription wouldn't he says just as important the future of American carmakers is the salesforce. When sales are down you don't want to lose the only people who can get them to gros said don't fire the best dealers and don't crush them -- with new financial performance demands they can't meet the Mitt Romney did yeah. Toddlers -- as CNN this frost Steve's got it right Taylor has -- thousand dealerships GM has 7000. Exactly right and children the people who are out there -- selling your product."

" For you right they get so many of them if they want to be competitive and that's that's what is going on just the other thing and I said this on the program yesterday it'll be interesting to see when the UAW guys sitting there at the panel. Will he say my union members are willing to also give up something a piece of the -- yesterday. The guy run Gettelfinger. Said I have -- not willing to give up any thing because when the financial services industry got the 700 billion dollars. You know they talked about executive pay they didn't talk anything about the rank and file so I don't see why the UAW rank and file should give up anything. Wrong answer this."

" And it -- congress could stop this by removing the monopoly power that the UAW. Has -- and let other unions represent some of the workers who would rather be represented by that. Intriguing -- unexpected to happen with this congress are interested in the -- market let the unions compete with each other -- guys like to watch fireworks."