Amidst market turmoil, crashed demand, plunging manufacturing and rising job losses, Canadian banks are increasing fees and interest rates again while Canadian Auto Companies continue to churn out overpriced, mediocre performing vehicles, lacklustre features with a finely tuned obsolescence factor and the Canadian Auto Worker’s Union rattles its rusty sabre, promising job security … for themselves.
Stop forcing Canadians to finance inept manufacturers who persist in pushing unwanted vehicles with deplorable customer service! Innovate, merge or dissolve. We stopped buying long ago, you ignored us.
Highly educated, financial and business experts incinerated billions of shareholder and taxpayer money, yet suffer no repercussions: bonuses are in tact, stock options prevail, indulgent expense accounts, lavish perks and sensational parties to celebrate and reward their performance – while begging for billion dollar bailouts to prevent bankruptcy. Like addicts, they’re incapable of accepting responsibility for problems they designed, yet continue to benefit from, let alone possess the mental clarity or acuity to resolve them.
These Executives want what they would never extend to Consumers in any circumstances – more credit:
without terms, without repayment, without any ideas or significant concessions for failed planning.
They judge SME’s on debt ratio criteria, solid business plans and proof of product demand, yet deem themselves exempt from such scrutiny. For decades, they failed to interpret their own financial charts, sales and volume reports, detail contingency plans, nor regularly review their business plan inclusive of a critical component, SWOT analysis: Strengths, Weaknesses, Opportunities and Threats.
They cry for more tax credits, business incentives, grants and non-repayable loans, while outsourcing Canadian jobs to overseas countries, decreasing customer service with auto-hell phone systems, increasing fees, juggling numbers in their divisions to leverage the best tax positions. Taxpayers are directly and indirectly stuck with the tab for over-inflated, under performing vehicles we refuse to buy and we are further penalized for Manufacturer’s inadequacies and rejected dead goods. That’s communism.
The USA Resuscitation Blueprint Boondoggle - in real time has proven:
• throwing billions of Taxpayer money is only the start of an insatiable cash burn with no results
• precariously perched on bankruptcy, saved by bailout, existing Management justify bonuses
• a galling lack of respect and financial acumen deficit pervades these management teams
• the market has drastically contracted, but the sky hasn’t fallen amidst their high pressure threats
• education and experience has no correlation to innovative resolutions or realistic marketing plans
Let the free market prevail! If Government has so much excess taxpayer money burning holes in its pocket, pay Unemployment Insurance, let the Auto Makers and Union die or be apart of the solution.
How do you remain sovereign, when you've sold everything? Where does this megalomaniacal control stop? Bail out banks, insurance companies, automotive manufacturers, health care, education and social security - all the boomers - and we've not even touched security - military - Iran, N. Korea - wars in Iraq, Afghanistan and Pakistan w/the Taliban and the nuclear action - graft for political alliances and the UN will demand greater “donations” or issue more toothless orders to reward tyranny. Where is all this money?
Market forces have dictated every industry consolidation and rationalization, regardless of Government intervention – the auto industry and unions will conform to Darwin’s theories, namely: survival of the fittest.
STIMULUS MUST TARGET CONSUMER – THE BUYER OF GOODS, NOT THE MANUFACTURER
Simply put, "we must think out of the box" with creative ideas, innovative measures and a new business model.
It is time to craft and deliver a true Economic Consumer Stimulus Program that purely, precisely and productively aims to generate new vehicle sales via cash incentives that excite consumers to buy, now.
For decades, municipal, provincial and federal Government via taxpayer money have given billions of unsecured cash and concessions. We’ve been held hostage to sustain artificial demand for overvalued, poorly designed vehicles, with deplorable customer service, that we do not want, yet forced to finance. And worse yet, not one level of Government held any of the Executives or Union to account, til now.
We stopped buying, but all of you chose to ignore the trend and failed to read velocity reports:
• Lobbyists pressed Government at all levels for grants and tax incentives, promising improved efficiencies, increased jobs, high tech innovation, research and development, new facility construction and business development loans with vacuous, uncollectible terms
• Auto manufacturers persisted in producing mediocre product, consumers didn’t want
• Unions promised guarantees that no one can deliver and if the business doesn’t exist - EI
Would forensic accounting confirm any promised value for the billions in tax incentives and grants?
Chrysler’s lack of interest in resolving my vehicle problems, have ensured I will never buy another one.
CANADIAN AUTOMOTIVE STIMULUS PACKAGE – CRITICAL TERMS COMPONENTS:
This temporary measure is to generate immediate sales, 6 months minimum to 1 year maximum.
Primary focus is sales incentives and discounts to reward Consumers for Buying New Cars Now.
Proof of Performance is based upon sell through for existing produced goods, not future production.
A company that redirects funds in any form or channel to facilities outside of Canada will forfeit continued participation and must return cash in full or secure assets under this Canadian Stimulus Plan.
All participants will be subject to an outside Auditing Firm and the Auditor General of Canada.
Sole beneficiaries are Auto Manufacturers, with their authorized Dealers in Canada, for:
• existing, produced inventory confirmed with master listing of VIN
• upon sell out of existing inventory first, will prebooking for future production be allowed.
• Other categories to consider and define within the context of this group:
o downline suppliers
o used vehicles – specified year range
No Returns, Exchanges or Sales for one year minimum to prevent churn and car curbing, consideration of current payments and default details must be clearly defined, ie job loss, number of missed payments
All participating manufacturer’s receiving funds, must issue equally valued, preferred stock for repayment
Unions and automotive makers must create an emergency concession listing for this plan to work.
Environmental Clean Up for Charity – all abandoned, rusted vehicles towed to junk yards or crushers qualify for $300 to a currently authorized and registered Charitable, Social &/or Fraternal Organization.
Each Corporate Management Team must submit a clearly defined and detailed action plan, tabled in Parliament to address how they intend to move forward, merge or close off operations, including a contingency plan to address the potential of their inventory supply exceeding Consumer demand.
A full accounting of vehicles sold by category – not based on production – actual sold vs projections.
I know a highly qualified Production Engineer who could map out this entire proposal and disseminate it to all participating parties for compliance. He has numerous inventions and issued patents to his name, as well as managed many outsourced, overseas manufacturing projects, including many auto plants in China, as well as a wide and diverse network of business people that were educated in Canada and the USA, currently at those production facilities.
Consumer Stimulus Package – Initial Outline – Give Billions to Car Buyers who Act Now:
• Mapping the Master List by Dealer and Manufacturer of
o On Lot Current Inventory and Completed Production
by Model Details, ie Cylinder, Colour, VIN, Selling Price – with proof of ads
No double dipping for stock transfers: Manufacturer to Dealer or Dealer to Dealer
• Initial Cash Infusion - a token $1000 per vehicle – ONLY upon completing the above with valid info
o Errors or duplicated car details will be charged back at $100 per incident
• Proof of Performance: Sale Confirmation with Approved, Signed, Submitted Buyer Agreements:
Under $15,000 - 10% to max of $1500, flat rate of $1200 below
Under $35000 – 15% to max of $3500 or
• Environmentally Friendly Incentive:
• Hybrids and Fuel Efficient (designated at current L per KM value) - maximum of 25%
• All other models: Luxury, Trucks, SUV’s, Full Sized and Mid Sized 20%
• Promotion Term – Minimum 6 Months from start date (possible extension to 12 months or more)
• Incentive Value:
a. Promotion combinations cannot exceed 50% of selling price
b. VIN and $ must cross reference Master List submitted to Government
c. Any paperwork that exposes fraudulent submissions will face formal criminal charges.
• Eligibility – Canadian models – ready to sell, now
a. Existing new vehicle inventory, no special orders for future production
b. Buyer must have a valid Canadian driver’s license with no suspensions, and all credit data
• NO PST or NO GST for duration of Promotional Period
• Loan must be 4 year term – with financing at 1% above prime
• Trade In Bonus determined by:
o Road worthy vehicles, insured, valid plates and registered to Buyer
o Scrap metal, Pick a Parts
o Vehicles Car – Year or Cylinder – with minimum purchase value of $20,000
• By Year – currently insured, valid plates, registration – consistent address - on a Sliding Scale
• Cylinders – 4 Cylinder as License Plate Tags are assessed
• Gas Consumption – km per litre
Clean up the Environment – Support your favourite Charity
• Applicability: abandoned, non-working, unlicensed junk heaps
• $300 donation to owner’s designated Charity with Tax Receipt
• $50 tow charge to recycling depots, pickapart or steel crushers
• All Charity Carcasses must show ownership or be on owners’ property
MANUFACTURERS – DEALER REQUIREMENTS:
All management contracts and compensation plans are temporarily set aside for the duration of their financial recovery, with no law suits - or funding is withdrawn, and free market conditions shall prevail. It is not a function of Government by way of the Taxpayer to guarantee the existence of business – it is their selection of a prudent Executive Team and Board of Directors. When the company is able to repay these funds and return to financial stability they may resume the terms of existing contracts.
An inventory list of total finished product with VIN by location must be submitted and current selling price. A cross reference of sold vehicles for Consumer and Auto reimbursement against this master list will confirm payment. Should higher prices be charged, the dealership will suffer a forfeiture of credit and if more than a dozen are discovered by manufacture – it will result in reduced funds and penalties.
Executive must cease bonuses and repay what they received in 2008, especially if they received bailout money in 2008. Their lack of strategic vision and planning precludes performance bonus earnings.
Any funds received – via tax credits, incentives, grants and loans – must be converted to preferred and special class voting shares to be honoured by the company or any take over suitor. These shares will be retired upon repayment at the then market price or sold for full reimbursement to taxpayers.
As any client would be required to do with their Creditor or CRA - they must produce a line by line expense statement showing what they are proactively intend to implement expenditure reductions and timelines.
It would be prudent management to entirely review management team, sales plans and a full Production Family rationalization, eliminate models with low volume and high financial cost, unless by special order.
UNIONS:
The game has changed and everything is up for renegotiation and redefinement – Union Executive has 2 choices to remain relevant and participate in facilitating efficient, effective, economic change or become extinct due to outmoded thinking for cash grabs for a high cost, low value proposition that Consumers have already rejected and Taxpayers will not finance.
Contract terms of personal and family perks, bonuses, employment service, legal fees, vehicle purchase discounts or freebies, school tuition, extended health/dental/eye care and prescription benefits plus any other contribution in kind must be fully detailed with current market values. They must produce a line by line expense statement showing what expenditure reductions they intend to proactively to implement.
Many have suffered great losses that require cut backs and, these contracts are no exception.
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