Blog Established in Support of the Domestic Automotive Industry and US Industrial Base

BAGLEY STREET - Detroit MI (Nov 18, 2008) On the morning of June 4, 1896 in a rented garage in Detroit at 58 Bagley Street a young entrepreneur, Henry Ford had a serious problem, a crisis, his first gas-powered automobile was idling inside and it was too wide to fit out the doors designed for a horse and buggy. Ford pondered the situation for a few minutes and then grabbed an ax and smashed down a brick wall to get his new prototype “horse-less carriage” or motorcar, which he called a “ Quadricycle” out into the public street, Bagley Street. The rest of the story of this inauspicious woodshed turned birthplace is that of Ford Motor Company Ford Motor Company and other manufacturers is our history and heritage, and Ford’s vision of transportation, production, industrialization and the affordable, personal car and how it changed the world is our responsibility to respect and maintain.

This site is dedicated to breaking down the walls and frames of status quo thinking in pursuit of the preservation of the domestic automotive industry, including the Big 3 and “transplant” US-based operations, their respective supply bases, and a vibrant, future-focused the US industrial base.

More to come from the Bagley Street Servers....

“National Summit” in 2009 on US Competitive Issues (Manufacturing, Energy, Environment and Technology)

“The National Summit” announced back on September 24 by the Detroit Economic Club is finally getting some more press now that a PR firm has taken over communicating the event which is to be held at Ford Field on June 15-17.

Video announcing "The National Summit":

The three-day multi-level (from CEOs to Students) conference is to be “national and non-partisan” and is focused on gathering around 150 speakers to a “gathering to define America’s future”.

Main topics for the conference are to include four areas: Technology, Energy, Environment and Manufacturing.

From the AP (Detroit) November 24, 2008:

“More than a dozen corporate chiefs have agreed to speak at a national convention in Detroit next year on the future of manufacturing, technology, energy and the environment.”

“Organizers say it's the nation's first such gathering and could promote a national plan to overcome industrial and economic upheavals. The Detroit Economic Club announced the speakers Monday.”

(break)

“Ford Motor Co. Chairman Bill Ford and Dow Chemical Co. chief Andrew Liveris announced plans in September to co-host the summit.”

From the original Press Release back on September 24, 2008:

Bill Ford Jr.:
"The National Summit will build on the Economic Club's reputation as one of the world's top speaking forums and the Detroit region's heritage as a global leader in manufacturing and technological innovation. Well, you all know Detroit's on the front lines of global competition, so it's fitting that our city takes the lead in creating this crucial and I believe long overdue dialogue."

Andrew Liveris:
"After years of neglect, maybe we've lost our way. But this great country, when its back is up against the wall, it responds. A little bit of panic helps us all. Let's put our thoughts around this summit. I fully endorse it. We fully support it as a sponsor. We clearly will be there in force to bring solutions to bear. Let's stop whining. Let's stop doing the non-American things. Let's bring our minds to a solution and see all sectors, everyone in, what a great, great way to do it."

From today’s Detroit Free Press:

“Chappell hopes to have President-elect Barack Obama and possibly some of his cabinet members speak at the summit, too. Andrew Liveris, chief executive officer of Midland-based Dow Chemical Co. and cochairman of the summit, has been mentioned as a possible candidate for Energy secretary in the Obama administration.”

Here is the newly revised speakers list on The National Summit website:

• William Clay Ford (Co-Chair, Ex. Chair Ford)


• Andrew Liveris (Co-Chair, CEO Dow Chemical)


• Thomas J. Donohue (CEO US Chamber of Commerce)


• Deborah Wince-Smith, (Pres. National Council on Competitiveness)


• Anthony F. Earley Jr. (CEO DTE Energy)


• Michael B. McCallister (Pres. & CEO Humana)


• Harold W. McGraw (CEO McGraw Hill)


• James J. Mulva (CEO ConocoPhillips)


• Robert (Bob) Nardelli (CEO Chrysler LLC)


• James B. Nicholson (CEO PVS Chemicals)


• James H. Quigley (CEO Deloitte)


• Matthew K. Rose (CEO BNSF Railway)


• Dr. Anthony R. Tersigni (CEO Ascension Health)


• Timothy Wadhams (CEO Masco)


• G. Richard (Rick) Wagoner Jr. (CEO General Motors)


• Joseph L. Welch (CEO ITC Holding)

The “Components" of the National Summit will include:

Kick-off and Key Notes: “Daily General Session featuring a panel of nationally recognized, cross-industry business, government, academic and other leaders who discuss Technology, Energy, Environment and Manufacturing, in the context of a global economy.”

Town Halls:
”Concurrent Town Halls, each comprised of 200 – 300 in-person participants”

C-Suite: “The VIP Club Level section where Town Hall leaders, speakers, sponsors and invited dignitaries enjoy exclusive meeting, networking and hospitality opportunities.”

CEO Summit: “The Hall of Legends, where Town Hall leaders debrief, debate and determine outcomes.”

Innovation Celebration: “An exhibit of breakthrough ideas with the goal of matching entrepreneurs, capital and research to create real economic value at The National Summit.”

Future Leaders Program: no decription of these sessions availible

“Summit Up” Sessions: ‘Daily closing sessions, which will report the findings of
electronic voting data collected at the Town Halls.”

One of the objectives of the organizers is to be inclusive in the level of participation, despite all the “VIP” stuff in the agenda:

“The National Summit has been designed to seek innovation wherever it lives – from the dorm room to the board room. It is in that spirit that we also invite students, our future leaders, to participate in this unprecedented event, and we encourage our attendees to sponsor their participation.”

Go here for a more detailed, but yet in progress Agenda or Sign-up for email updates.

Deal for Big 3 Rescue Loans to Avoid "Depression" - Levin: "Very, Very Important Moment..."

During a press conference a bi-partisan group of Senators including Michigan’s Carl Levin and Debbie Stabenow outlined an agreement just reached to enable government loans to General Motors, Ford and Chrysler, and in some cases to major automotive suppliers as well. Senate Banking Committee leaders and Automotive Caucus were also involved.

The Deal on Loans
Automotive Detroit ‘Big 3’ are to submit by December 2, 2008 individual “viability plans” including turn around actions and financial requirements as part of their potential applications for loans. Those plans from General Motors, Ford and Chrysler that must demonstrate the carmakers can become “economically viable” and pay the loans back to taxpayers, are to be submitted to the US Department of Commerce and will include “strong oversight” from Congress and the Department of the Treasury.

Should there not be a vote today or tomorrow, the Senate is to reconvene on December 8, 2008 to review the “Viability Plans”. Several members of the bi-partisan Senate group stated that the Automotive OEMs or manufacturers need to “not only persuade the Congress, but the American people. "

Rough 72 Hours for the Auto Industry

While Senate staffers and others ranging from auto company executives to industry consultants and subject matter experts worked through the night on the compromise that will focus on automotive OEM's providing their business cases to Congress, earlier in the day there have been a number of news stories and statements from key players saying that a deal for Big 3 loans or a "bail-out" was not going to happen this week.

Statements by Top Law Makers Earlier Today

Speaker of the House Nancy Polosi :

"It is all about accountability and viability. We need to see a plan where the auto industry held can be accountable. Until they show us the plan, we cannot show them the money."

Senate Majority Leader Harry Ried:

"Democrats are determined to help autoworkers in this very important industry. The sad reality is that no one has passed a plan that can pass through the House and the Senate and get signed by President Bush."

Later in the day...

"In light of the importance of this issue to all of us, we have decided that the best way to proceed is to give the auto companies another opportunity to make their case."

From the Press Conference Announcing a Senate Deal:

Michigan's Senator Carl Levin restated and the failure of any to the Big 3 could very well lead to a possible "depression" and that this was a "very, very important moment".

From Michigan's other Senator Debbie Stabenow called the current situation was about the "fundamentals of our economy" and that the current "global crisis" in the financial markets and manufacturing not only affects the US, but Canada and Europe" and that has "a ripple affect across the world." She also said that the failure fo the US domestic automotive industry would affect "millions and millions of people", and that something had to be done to save the companies that "created the middleclass."

Ohio Senator Sherrod Brown, also part of the news conference said the impact and cost of "inaction is too great", but he added the loan would lead to "needed structural changes" related to labor costs, executive compensation and the possible changes to OEM board members. He argued that allowing one or more of the Big 3 to got into bankruptcy would "cripple them" because no one would want to buy a car from a bankrupt company, an arguement that has not necessarily had much weigh thus far.

Backing away from the "Edge of a Cliff"
Despite the inability of the top automotive executives to communicate their case to both Congress and the American public, "cooler heads" appear to be prevailing as predicted by the Center for Automotive Research's Dr. David Cole and other industry insiders.

More later as more reports of the deal are made public...

Virtual "War Room" Established Supporting Domestic Auto Industry

BAGLEY STREET Detroit, MI (Nov 19, 2008) - A team of bloggers operating from the Bagely Street blog have created a "virtual war room" providing an on-line collaboration space on the blogospere in support of the preservation of the domestic automotive indusry and the US industrial base.

From the Yahoo Group "Bagley_Street_Public" description:

Virtual "War Room" at Bagley Street Public is an open forum dedicated to the current crisis in the US domestic automotive industry, the automotive supply base and the future of the US Industry and US Industrial Base.

As to the purpose of the "War Room":

Our Purpose:
To act as a clearinghouse for information/data and discussions supporting actions and tasks to preserve the future of a vibrant US domestic automotive industry, supply base and the future of the US industrial base as a whole.

To provide an independent forum for the development and promotion of arguments, business cases, positions, discussions between like-minded participants for common purposes and objectives.

Background of group is also included:

Background:
Many supporters of the Big 3 and the domestic automotive industry and supply base are looking for a way to exchange ideas, to make a contribution they can make.

The Bagley Street blog (and your own blogs), forums and this war room are designed to facilitate "real-time" collaboration and communication between supporters and activists within the blogosphere to discuss, innovate, strategize and take effective actions to preserve for future generations our domestic automotive industry and the US industrial base in the current (2008, 2009+ ) and potentially on-going economic crisis.

In email inviations going out to perspective members the Bagley Street Team, which not sponsored by any company or industry organization but is an independent informal group, outlines the urgency of the current crisis and are asking for constructive input from group participants:

"The struggle to “bail-out” the Detroit-based Big 3 and their extended supply chains will require a sustained, proactive movement in order to insure that the US domestic automotive industry and supply base which is critical to the US economic and national security survives to be passed on to future generations.

Also, as mentioned above, although there may be legitimate concerns that need addressing, please note that this forum is looking for solutions to problems, more than complaints or policy statements. It is intended as a service to create an all-inclusive environment that determines the best methodology to "create a common voice", if you will, for those who seek to protect the future of our automotive industry and industrial base."

For those interested in checking out the newly formed group it can be found here:
http://groups.yahoo.com/group/Bagley_Street_Public/

Or you can join the Bagley Street War Room team NOW using the field below:

Center for Automotive Research (CAR) Outlines Impact of Failure of US Automotive Industry

Ann Arbor MI (Nov 4, 2008) - The Center for Automotive Research (CAR Group) published a comprehensive report entitled "The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers to provide insight into the projected ramifications of a potential bankruptcy of General Motors (GM) or other major US-based OEMs (carmakers) following a crisis that has stemmed from recent crisis in the US financial sector.

Part of the introduction to the report:

The auto industry has one of the largest economic multipliers of any sector of the U.S. economy, and is sufficiently large that its growth or contraction can be detected in changes in the U.S. Gross Domestic Product. In many states, employment in automotive and automotive parts manufacturing ranks among the top three manufacturing industries. The purpose of this memo is to estimate the economic impact-in terms of jobs, compensation and tax revenues-of a major contraction involving one or more of the Detroit Three automakers.

Prepared by the subject matter experts with years of experience in the automotive industry at the research group, the report was accompanied by a press release that summarized the impact to the US Economy:

"Our model estimates that a complete shutdown of Detroit Three U.S. production would have a major impact on the U.S. economy in terms of lost wages, reductions in social security receipts, personal income taxes paid, and an increase in transfer payments. (break)

The government stands to lose on the level of $60 billion in the first year alone, and the three year total is well over $156 billion."

And the CAR chairman, Dr. David Cole:

"To permit any of the Detroit Three manufacturers to collapse, would scar the U.S. economy further at a time when it can ill afford another blow. (break)

The likelihood of one or two of the Detroit Three manufacturers ending operations is very real. As policymakers consider their positions on assistance to the auto industry, they must decide, is an ounce of prevention indeed worth a pound of cure?"

More on reports from CAR later....