Auto Industry Bailout

No introduction here.  Just a statement.  THE FEDERAL GOVERNMENT SHOULD NOT BAIL OUT THE AUTO INDUSTRY.  When you look at the facts and figures, it’s simply obvious. 

Ever wonder what an average auto worker in an American made car factory makes?  And I’m not talking about the suit and tie guys…I’m talking about the ones standing on the line, bolting on the door or putting on a wheel?  The average base pay STARTS at about $25 – $28 per hour, and ranges up to around $40 – $50 per hour based on your job and tenure.  This is a STARTING salary of $52,000 to $58,000 per year.  Now, when you include health care benefits, pension benefits, retirement benefits, etc…those pay rates actually increase to around $65.00 – $75.00 an hour per worker.  But, let’s just focus now on the actual paycheck.  This means that someone with no college education (not a given, but likely), performing a job in an automated production line, earns more per year than most teachers, social workers, many nurses, and a slew of other professional workers who earned college educations in their field of work. 

And this is to pay people to build the cars that are consistently the lowest rated and most overvalued cars in our market.  The average pay per worker for Toyota and Honda in their American factories is closer to $45-$50 per worker (vs $65 – $75 for the Big 3), yet they produce a higher quality vehicle with a greater overall value and lower cost to own.  And this is not based just on perception.  The perception over time has been conceived and grown based on facts.  Look at any April edition of Consumer Reports over the last decade.  Read Motor Trend, Car and Driver, Automobile.  Look at their Top 10 lists, their best used car value lists, the winners of most of their vehicle comparison tests.  It’s not exclusively foreign, but it’s certainly mostly foreign cars that dominate these ratings and lists. 

Therefore, why would we simply “bail out” the Big 3?  If a middle-class school system consistently got low national scores, had a terrible graduation rate, and was always way over budget, would the state simply give them more money to make it all better?  No, they’d be expected to restructure, make new hires, reorganize their curriculum, have better oversight, and so forth.  If a hospital had terrible ethics complaints, lost millions of dollars each year, had the highest death rate in it’s region, and was not up to sanity codes….bail out?  Nope.  If a restaurant chain made poor food, overpaid it’s workers, provided slow service, and was generally unclean…bail out?  Absolutely not. 

Then, of course, these businesses (and most businesses) are not governed and choke-holded by decades old, out of date, money grubbing Unions who care nothing for the health of the business, but only for the bottom line pay of it’s members.  I don’t understand it.  If GM came out right now and completely broke it’s Union contract and told them to go to hell….do they really think they’d simply lose all their workers and not be able to produce vehicles anymore?  Would there not be a mile-long line of people ready to come in and get paid $20.00 an hour for a job that a union guy made $35.00 an hour doing?  Come on!!  I thought we lived in a free-market society?  If GM went under, and 4,000,000 GM cars per year were all of a sudden not being sent to dealers across the country….people would buy other brands instead, and those brands sales would increase, which would demand an increase in productions from their factories, which would require more workers, and possibly more facilities.  I know that oversimplified and I’m no economics expert, but there’s gotta be a better answer than a bail out. 

Because personally, if part of my tax dollar is being given to help secure jobs for $60,000 a year auto line workers, I’m going to be pretty ticked off.

Every Vehicle I’ve Owned

Disclaimer – this does not include my wife’s two cars that I’ve “co-owned” in the last 5 years.  Also, these are not actual pictures of the cars I owned.  They are pictures of the same model year and type of car I owned.  Mostly just the colors are different.  With that said, starting at the top left, going clockwise:

1. 1987 Ford Escort.  Mine was a 2-door, black, with red interior.  4 speed manual.  Bought it in June 1992 with 60,000 miles for a grand total of $2300.00.  Put in a Kenwood CD player and a big-ass speaker box in the trunk.  Drove it until December 1995.  It had roughly 107,000 miles when I traded it.

2. 1993 Mazda Protege.  Mine was 4 door, 5 speed manual, champaigne colored.  Had about 34,000 miles when I bought it in December 1995.  I was traveling a TON on weekends with ministries during college, and was not confident in the Escort anymore.  Used some student loan money for a down payment and financed it on my own at age 19.  Pretty cool.  Nice car.  Replaced the power steering pump at 60,000 miles (it went out on me) for about $300.00, but that was it.  Drove it until June 1998.  Had about 96,000 miles at the end of my ownership.

3. 1995 Ford Ranger XLT.  Mine was 2 door, 5 speed manual, green colored.  I had been wanting a truck for a while, just had an itch.  Bought this 1 month after I graduated and moved to Knoxville.  Had about 70,000 miles when I got it.  Good truck, ran well, I enjoyed it.  However, I quickly learned that a 2-door, 3 seater truck wasn’t the best vehicle for a youth minister with no church van.  I needed more seats.  Hence…

4. 1998 Mazda Protege LX.  Traded the Ranger for this one in November 1998.  The car was 1 year old with 32,000 miles.  White, 4 door, 5 speed manual.  First vehicle I owned with power locks, windows, and a remote entry.  Drove it until it had 102,000 miles and did no service to it other than oil changes, battery, tires, general upkeep stuff.  Very dependable car. 

5. 2001 Mazda B3000.  My first ever brand new vehicle.  Bought this about 4 months after I’d started selling cars for a living.  Traded the 98 Protege and leased the truck because of a great lease rate Mazda had, which made for a great payment at the time.  It was 2WD, white, extended cab, 5 speed manual.  Looked pretty much just like the picture above, except it wasn’t a 4×4.  Awesome truck, just one complaint.  It was extended cab but didn’t have a 3rd door.  So the extended cab was nearly useless, because you couldn’t get things in and out of there.  Only owned it for 1 year and 17,000 miles.

6. 2002 Mazda Protege LX.  My 2nd new vehicle.  Why so soon?  After driving the 2001 truck for only 1 year, 9/11 hit, gas prices went up dramatically, and my car sales career wasn’t going very well.  The Protege’s were on 0% for 60 months at that time, and the car got 10mpg better than the truck.  Payment was almost identical, but I was immediately saving about $30.00 a month in gas alone.  Every penny counted.  This car was silver, 5 speed, with a sunroof.  Really, really, really great car.  Drove this one for over 6 years, 97,000 miles, and never had one mechanical issue.  Just like the previous Protege, all I did was oil changes, new battery, tires, etc. 

7. 2008 Hyundai Accent GLS.  White, 4 door, automatic.  Got it in September 2008.  After 16 years of driving, my first automatic transmission.  The 2002 Protege was great, but needed about $1400.00 in “age” repairs (timing belt and clutch) to continue it’s life.  I didn’t want to fork out that chunk of money, and after 6 years was sort of ready for a change.  This car is very basic.  No power windows, locks, no keyless entry.  10 years ago I would NEVER have considered a Hyundai.  5 years ago they started getting my attention.  Now I finally feel comfortable owning one.  So far, after 2600 miles, I’m averaging 31 mpg consistently.  I only hope it will be as reliable and long lasting as my Protege’s were.  

8. My future car.  A 2008 Porsche 911 GT2.  I’m thinking with inflation, resale value, and saving every penny, I’ll be able to buy a used 2008 Porsche 911 GT2 sometime in the year 2019.  I’ll be 43, in a mid-life crisis, and ready for a hot, fast, identity-crisis type of car.  It will be perfect.

New Car

Got a new car.  2008 Hyundai Accent.  VERY basic car.  No power locks, windows, or mirrors.  No cruise control.  Basically, it has a cd player, air conditioning, tilt steering, and an automatic transmission.  32 years old, and this is my first automatic, ever. 

Interestingly enough, the local Hyundai dealership where we got the car was the last dealership I ever sold cars for back in 2004.  It made for good conversation with the sales person and sales manager.  Makes it much easier to buy a car when they all know you sold before, so you know all the tricks of the trade.

If this car will last as long and be as reliable as my three previous Mazda Protege’s (1994, 1998, and 2002 models), I will be a very happy person.

Car – Buying a Car – Car Salespeople

I may be buying another car very soon.  I love my 2002 Mazda Protege LX.  I bought it with 12 miles on the odometer.  It now has 97,500.  However, it needs a new clutch and a new timing belt VERY soon….I’ve gotten 3 estimates and the cheapest so far is $1300.00 to do both.  Because I’ve had to refinance my car a couple of times to make our family budget work, I’m still making payments on it.  Not sure if I want to drop $1300.00 on a car with 97,000 miles that I’m still making payments on.  Tough choice. 

Anyways, just started a little car shopping, and am immediately reminded of why I no longer sell cars, and never ever ever want to again.  My sales guy last night was about 26 years old, and for over an hour looked like he needed a drug fix really bad.  In fact, at one point I was outside with him.  We started to walk inside, and he began sniffing and rubbing his nose frantically and said, “I’ll meet you inside….I’m having some issues with my nose….my sinuses are killing me.”  I’ve worked with many car salespeople who were on cocaine.  This was a classic cocaine reaction.  I worked with a guy who was a crack addict.  Every so often he would bring random things to work to try and sell to other salespeople for $15 or $20.  Clocks, phones, a watch, etc.  I worked with another guy who, about 1 year ago, was put in jail for life for killing a mom/daughter while driving drunk.  Turns out he’d been arrested for DUI about 9 times in the last 10 years, and had only spent about 1 week in jail.  He was the top salesperson for over about 2 years at one dealership I worked for.

Some of the reasons I hated selling cars….

1. You’re pushing people to spend many thousands of dollars “on the spot”.
2. Everybody lies.  The salespeople lie.  The customers lie.  The managers lie.  The detailers lie.  If “Kit”, the Knight Rider car, was for sale on the lot, he would freaking lie to you.   
3. Some days you could be at the dealership for 12 hours and only work with 1 customer, and that customer would buy a vehicle.  Other days you could be at the dealership for 12 hours and work with 14 customers, and not one of them would buy a vehicle.
4. You never, ever know what you’re going to earn….from sale to sale, day to day, week to week, month to month.  From August to November of 2001, this was my monthly earnings…. $4800.00 … $2200.00 … $1800.00 … $500.00.  No kidding.  I made $4800 one month, then 3 months later made $500.00 the whole month.  This is common.
5. Balloons, balloons, balloons.  Every Saturday morning is was vital to put balloons in every conceivable spot around the lot.  On the cars, on the trucks, on the hot dog stand, on the gates, on the fence…it made you want to tie a big helium balloon around your neck and have it wisk you off to Kansas.
6. Terrible business sense.  Here’s how it works.  You’re a salesperson.  For a couple of years, you’re the top salesperson.  You become a sales manager.  Doesn’t matter if you have good people skills, if you’re a good manager, if you know how to work with other salespeople, if you’re good with business and marketing matters.  Top salespeople = future manager.  No matter what.  The sad part … most of the top salespeople make HORRIBLE managers. 
7. Almost Zero customer loyalty.  Over 90% of the customers I sold to could have cared less how hard I worked, how cordial I was, how honest I was, how I would go over the top to help them.  Once they drive home (unless they have a problem), they forget who you are. 

Enough venting.  It’s time to make a choice.  I’m going to look at a 2008 Hyundai Accent after work.  It’s new, with NO frills…no power windows, no power locks.  But I can buy it brand new for about $13,200.00, so it may be worth it.  Hyundai has come a LOOONG way in the last decade.  They are now one of the top rated vehicles, period.  The Sonata recently beat out both the Camry and Accord in a Motor Trend midsize car test.  5 years, 60,000 mile bumper to bumper warranty, 10 year, 100,000 drivetrain warranty.  We’ll see.  Maybe it’ll work, maybe not.  I’ll let you know.

Until then…be nice to your local car salesperson.

Questions

Is Michael Phelps really the greatest Olympian EVER? 

When did Mary Kate and Ashley Olsen (one of them was on Weeds, season 3) go from being cute teen actresses to scary-looking, drugged up freakazoids?

I definitely lean more Democratic than Republican…but is anyone else as scared about Barak Obama as I am?

Things from the 70’s seem to keep coming back into style.  So will somebody please remake the Volkswagon Thing?

I had two vacation days scheduled for the end of this week.  I cancelled them because there’s so much going on at work I can’t keep up.  Does that mean I’m stupid and just working too much or that I’m a good, loyal employee?

Did anyone else really enjoy school lunch when they were growing up?  I did. 

If you a had a choice between a slow & glitchy computer or a gun to your head, which would you choose?  (think hard before deciding)

Has anyone ever done the math to figure out exactly how many animals were on the Ark?  We know the dimensions, right?  So we can calculate the floor space?  And we can estimate the size of various animals?  And therefore can’t we reasonably guess how many different types were on board? 

Is the Roman Catholic Church still universally relevant?

At what age will Tom Cruise actually start looking old?

A Jew, a Christian, and a Muslim embark on a sightseeing race across the state of North Dakota.  Which one dies of boredom first?

This can’t be comfortable

Took a picture of this dude while I was driving in the Turkey Creek area about 3 weeks ago.  Look at his arm position in the picture on the right!  I thought riding motorcyles was supposed to be relaxing?

In the Market For a Bike (??)

We’re (sort of) in the market (beginning stages) for bikes.  Sort of as in it looks like we’ll have to spend AT LEAST $400.00 to get 2 decent bikes, helmets, locks, and a bike rack.  And that sounds like (and is) a LOT of dough to me.  To get something more name brand and consumer rated, that cost goes up to about $800.00.

But I know little to nothing about today’s bikes.  What makes the $150.00 one so different from the $400.00 one.  Mountain, urban, hybrid, road, which is better?  There are no less than 12 good, namebrand bike makes.  Which are better and why?  Why do bikes have SO many stinking speeds?  I keep reading all over the web about customers who like their bikes but have problems with gear slippage all the time.  How long do brakes last?  I’m not a fan of handle brakes, I always liked the standard pedal back brake so much better.  How often do they need tuning up, and how much does that cost?  What type of other “maintenance” costs can you expect?  What bike racks are good, and which suck?  Will Knoxville ever start creating actual bike paths on the roadways, rather than just building greenways? 

Any advice or suggestions would be appreciated.  Do you have a bike?  What kind?  Where did you get it?  Has it been good quality?  What brand should we lean toward?  What accessories will we need to keep on hand?  Anything else you can think of? 

The Chicken Truck

This is a picture I took from my car – yes, while driving, at approximately 62 MPH - on my way to work the other morning.

It’s a chicken truck. Filled with chickens. I have nothing to offer on this, except to say that it made me sort of sad to see it, and I drove beside it for about 2 miles just to try and see how the chickens were acting in there. Seemed sort of like they were acting like chickens, but I’m no expert.

It was still sad.

Smart Fix 40

Smart Fix 40?  Now there’s an oxymoron, a paradox, a minimalization, and a misnomer all rolled into one. 

Here are some more appropriate names:  “We Keep Fixing 40″, “We Never Built 40 The Right Way To Begin With”, “Eternally Detouring Around 40″, “Making You Late to Work for 40 Years”, “40 Ways to Repair a Highway in One Decade”, “Build Roads, Not Schools”, “Can 40 Really Be Fixed”, or “The, Hey, Out of Town Passerby-er, Do You Happen to Keep Excedrin in Your Glovebox Because You’re About to Try to Drive Through Knoxville and You’re Never Going to Want to See Us Again, Smart Fix 40 Project.” 

I have an idea.  How about “Let’s Build 400 Miles of Bike Paths So People Can Exercise, Be Environmentally Friendly, and Save Gas Money at the Same Time Without Worrying About Being Mauled by a Hummer”.  Is anyone lobbying for that project during the governmental budget meetings? 

Foreign vs Domestic

I’m pretty frustrated and ashamed of US Automakers.  For the last few years now, and especially after selling cars for 3 years, I just can’t help it.  I drive each day, seeing the vehicles around me on the road.  When I see American cars, I immediately think, “old looking, boxy, gas guzzler, poor design, low quality”.  And when I see (most) foreign made cars, I think, “smooth lines, better fuel economy, longer lasting, higher quality, more innovative looks, better fit and finish”.  These thoughts are ingrained into my mind.

The top selling car manufacturer’s in the US in 2002:  (1) General Motors, (2) Ford, (3) Toyota, (4) Chrysler/Dodge, (5) Honda, (5) Nissan.  The top selling in the US in 2007:  (1) GM, (2) Toyota, (3) Ford, (4) Chrysler/Dodge, (5) Honda, (6) Nissan.  The top selling brands WORLDWIDE in 2007:  (1 tie) GM & Toyota, (2) Ford, (3) Volkswagon, (4) Honda, (5) Peugot/Citroen, (6) Nissan.  Now, there’s a good US presence there, I see that.  But it’s not the whole story.  Toyota, Honda, Nissan, and VW are pretty consistently earning significant marketable profits each year from their sales.  GM, Ford, and Chrysler are consistently losing money, cutting costs, increasing rebates and incentives, shutting down plants, and buying out employees. 

Personally, we own a 2007 Honda and a 2002 Mazda, both foreign makes.  In fact, in the last 13 years, I’ve owned three different Mazda Protege’s, putting a total of roughly 220,000 miles on the three cars combined, and made one repair in 1996 that cost me $300.00.  That’s it.  At this point, I’m pretty much 100% committed to buying Honda, Toyota, or Mazda cars.  I like Nissan okay, but they go a little overboard with some of their designs and interior looks.  If at some point I ever buy a truck, I may consider a Ford or Chevrolet, I’m not sure yet. 

Ultimately, here’s my struggle with this.  What has happened to ingenuity, creativity, and forward thinking in the US?  Why are we so far behind the curve on vehicles and technology?  Why do the newest makes of US cars look 5-10 years older, design-wise, than their foreign designed counterparts?  And honestly, I think it has little to do with the US workforce building the cars.  The majority of “foreign made” cars sold in the US are actually 100% assembled in the US.  A lot of the parts may be made overseas, but those suckers are built here.  By the same workforce available to US carmakers. 

I’m a fan of cars.  Always have been.  If I could, I’d probably trade for a different vehicle every year, just because I like so many styles and makes.  I just would like to see the US step back up to the plate.  Design some forward thinking vehicles.  Make them more fuel efficient.  Make them with better quality.  Please make them actually look better.  Until then, it’s nothin’ but Japanese ridin’ for me.

an arm, a leg, and a tank of gas

Yesterday evening, on my way home, I stopped to fill up my car. When I was done, I had officially paid the most I’ve ever paid in my entire life for a tank of gas.

$40.60

For a 2002 Mazda Protege LX with a 13 gallon tank. Wow. I’m curious….what are you spending on a tank of gas right now?

crap, darn, shoot, &@%#!!!

Yesterday afternoon in Knoxville produced one of the hardest, heaviest, scariest storms I’ve seen around here in a while. It only lasted about 15 minutes, but some of my co-workers were really freaking out, thinking we may need to take shelter in a bathroom or something. The rain was coming down sideways. The tin roof of our facility of creaking and sounded like it may rip off. Water was coming in every door of the building, wetting the floors and carpets. Pretty much everyone here was huddled at a window or a door or in the distribution center looking out of the open bay door. It was wild.

And the sunroof on my car was open. $%&#@!!!

Topic #4 – Fuel Economy

I’ve always been a junkie for compact cars. I currently drive a 2002 Mazda Protege LX, which looks very much like the one picture to the left. I bought it new. It now has about 85,000 miles. I’ve always gotten about 29-30 mpg from it.

I’m now pretty totally enamoured with the Honda Fit. Awesome car. 35 mpg, tons of room, sporty, great standard features, air bags all the way around, and really fun to drive.

In my vehicle history, I’ve owned a 1987 Ford Escort, a 1994 Mazda Protege, a 1998 Mazda Protege, and a couple of compact pickups for a short time. So, for most of my driving life, I’ve gotten about 30 mpg….and I really like it.

What’s very frustrating is to know that fuel economy is the USA could be much better.

Get this…..in 2007, only TWO cars in the US got an average of at least 40 mpg…the Toyota Prius and the Honda Civic Hybid. In Europe in 2007, 113 cars got at least an average of 40 mpg. That’s right. 113 different cars.

In 2007, the average mpg of ALL cars/light trucks on the road in the US ranged from 21-24 mpg. In Europe, 2007, the average mpg of ALL cars/light trucks on the road ranged from 40-43 mpg. That’s right…about 70% better than our vehicles. That’s ludicrous. Again, Capitalism bites us in the rear end. Not only that, but have you seen many pictures of the compact cars and trucks in Europe? They look way cooler, more stylish, and more sporty than their counterparts here do! And I’m not just talking about the 2 seater Smart cars. The best resource I can find to look at a sampling of different European cars is this page from Wiklipedia listing the Top 3 finishers the last several years in the European Car of the Year voting. Also, the Toyota Yaris has been gaining in popularity in the US over the last year. This car was released in Europe all the way back in 2000. This is a pretty normal trend, actually. Cool cars are released in Europe, gain popularity, then are released in “modified” versions here in the US…modified in the sense that they are rarely as good looking and get worse gas mileage. I truly cringe when I see the vast number of Hummers, Envoys, Expeditions, Suburbans, Sequoias, Armadas, Range Rovers, Durangos, and other gas guzzlers that rove our roads. And I don’t think people that drive these vehicles are bad people. It’s just that I’m a fuel economy kind of guy. And I hope I’ll have the sense and frugality to remain that way.

elemental

Simply stated…I love the Honda Element. Love it. It’s sporty, stylish, fairly fuel efficient, incredibly versatile, unique, different. I’ve gotten inside one and moved all the seats, pushed the buttons, opened the doors, run my hand along the rubber floor, salivated (accidentally, I promise) on the passenger seat. Say what you want about the looks…it is simply an amazing vehicle. Hopefully will be my next vehicle. Both back seats can be removed. Eli and I can go camping and not even sleep on the ground! Interior can be sprayed clean with a water hose!

Alas, times are hard. Money’s tight. 3 year old sons love going to Dollywood, and mom/dad simply can’t seem to avoid the temptation to eat dinner out at least twice a week.

Until then, I’ll scoot along in my nice, cute, dependable 2002 Mazda Protege. LX model. Sunroof and alloy wheels. 5 speed manual. 79,586 miles. Been a good’in.

What vehicle would you like to be your next?