Bailout Watch 305: I Give Up On Detroit

Robert Farago
by Robert Farago

Well, at least their hometown media. Our hypermiling pal Sam “Is there a draft out here?” Abuelsamid at Autoblog linked me to the straw that broke this camel’s back: a Christmas Eve column by The Detroit News’ John McCormick. “ Maybe it’s time to turn the tables on the South” the title proclaims, proving that prevarication is the first refuge of a journalistic scoundrel. “The unnecessarily long and painful path toward the approval of government bridging loans for General Motors Corp. and Chrysler LLC has exposed a new threat to Detroit. It’s one that Michigan consumers may want to keep in mind as they consider their expenditures, vacation options and even retirement plans.” Breathe Farago. Gentlemen, you won. You got your money. I’m sorry if you found the $66.2b raid on the public purse was a bit… tedious. And embarrassing. But you want to start a boycott? You do realize you’re going back to Uncle Sugar in March, right? Southerners buy a lot of your trucks, yes? Maybe it would be best to just shut the Hell up and be glad that President Bush felt free to ride roughshod over the United States Congress (not to mention the U.S. Constitution). But no. Insult added to injury after the jump.

McCormick’s rant continues with the unconscionably flaming statement “The problem here centers on certain southern states — Mississippi, Louisiana, Georgia and, in particular, Alabama — where certain bone-headed senators seem to have forgotten that the Civil War ended, with the appropriate outcome, almost 150 years ago.”

Despite that obvious middle finger salute to the South, McCormick hides behind the idea that a southern boycott is a suggestion from unnamed readers, not, of course, himself.

“Apparently Alabama is quite a tourist destination for Michigan residents, so perhaps they will want to find other places to spend their hard-earned dollars. The southern state is also heavily favored by retirees from Michigan, but maybe that could change, too.

“One other thought raised by readers concerns disasters; not the financial kind we are all experiencing, but the natural variety — droughts, hurricanes, tornadoes, floods — the sort of calamities that afflict southern states on a regular basis.

“As you point out, federal taxpayer money flows freely in these circumstances, and so does free assistance from northern states, including Michigan. Detroit automakers, for example, gladly helped with vehicles and personnel when Hurricane Katrina slammed the Gulf Coast.

“Is it time the South is reminded that a mean-spirited attitude is not a smart play when the whole country is on the ropes?”

Did I just read that? Is McCormick– sorry, his anonymous emailer– seriously suggesting that his constituents withhold federal support for the South during natural disasters? Does Fortress Detroit have no shame?

[If you wish to email McCormick a copy of your response here on TTAC, please do so at john.mccormick@detnews.com.]

Robert Farago
Robert Farago

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  • Pb35 Pb35 on Dec 29, 2008
    ireallylovemangoes I didn't think my post had any hate in it. It wasn't meant to come off like that. For the record, I'm a blue blooded NY yankee living in Texas. I also lived in Detroit for 5 years in the 90s and during that time I visited the Chrysler plant in Huntsville, AL for a few days. Great folks, some of the Chrysler guys even took me out for some great BBQ one night. When I'm planning a vacation though, Alabama never springs to mind! Having said that, I love my country from sea to shining sea and all that...except Jersey ;)
  • Ireallylovemangoes Ireallylovemangoes on Dec 29, 2008

    pb35 I REALLY did love your comment. Everyone needs to lighten up and your comment did just that. The rest of my rant was about the other posters, not yours. Sorry!

  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
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