Detroit

Below is a message I just sent Sherrod Brown. It sums up what I think and I hope he reads it.

Dear Honorable Senator Brown,

During all the coverage about the Big Three Bailout I am struck by a couple of points and have observations I would like to share with you. Granted, I am not educated in the business of automobile making, but I still would like to share these thoughts with you.

Regarding battery technology for plug in hybrids, specifically the Chevy Volt; from what I understand, GM's contention is that current battery technology does not support the design goals of the vehicle, and they do not have the ability to currently achieve it. This is in contrast to Tesla Motors, a company that has developed an electric vehicle capable of traveling over 200 miles per charge. The company admits that the lithium ion battery accounts for about one third of the vehicle’s cost, approximately $33,000. Would it not stand to reason that with a fraction of the $34B Detroit is requesting be used to subsidize the cost of the batteries? $1B would buy over 30 million batteries, enough to put a battery in every car made in America for the next two years, domestic and foreign. Granted, that is a ridiculous sum, but the fact of the comparison remains. Or perhaps build the manufacturing facilities required to make enough batteries to essentially flood the market and drive the cost down? Combine that with that with the technology and hardware to allow consumers to charge the vehicles, whether it is in their garage, next to their house, or on the street at a parking meter. I believe that if the supply was created, demand would follow.

My second point and observation is in regard to the CAFE standards. It's my opinion that the standards have been to lax for to long. Granted, I'm 33 years old and haven't been driving long, but I seem to recall the 1984 Chevy Cavalier that my mother bought for my brother and I to share getting about the same mileage as the 2009 Mercury Milan I currently drive. I think it is insulting and offensive to hear Detroit complain about technology not being available for higher standards when in fact it is Congress, influenced by lobbies for big oil and Detroit that has enabled this behavior to perpetuate. It is arguable, and convincingly, I believe, to state that had the standards been higher, the technology would have been developed. Necessity is after all, the mother of invention. The Honorable Senator Levin's comments last week about the new standards that won’t be implemented for at least two years was grasping at straws and an thinly veiled attempt to deflect criticism.

Another point is in regards to the unions. I work for a union construction company in a management position; I am not a member of any union. This affords a unique perspective, one that allows me to see the impact of a non-incentivized workforce on the profitability of projects. Individuals stuck in a "group think" mentality that see their coworkers earning the same wage and benefits regardless of how hard they work, and with little recourse to address situations, are less likely to contribute at a level that makes out. Basically "If I can make 10 widgets, but Joe only makes 7 and gets paid the same, why should I bother?" I understand in the early 1900's unions were very important and served a great purpose protecting workers rights, but now I question their effectiveness. Certainly the foreign auto makers aren't running their factories in deplorable conditions and abusing their workers. If they were, I'm sure they would have unionized, or been exposed. I think it is time to drastically change how the unions affect the business and force the Big 3 to adopt models similar to the foreign manufacturers.

I’ve heard the pundits who claim that with the $34B Congress could buy all three companies and that market forces should be left to work as they do. I partially agree with the market forces point. I believe GM is model heavy. Perhaps a consolidation further than they proposed is necessary; reduce the lines to Chevrolet, Buick (or Pontiac) and Cadillac. Create tit for tat competition with Ford, Lincoln, and Mercury and Dodge, Jeep, and Chrysler.

With that, I will close. Thank you for your time, and please continue the work you do for the great State of Ohio.

Chad Helms