COLORADO SPRINGS, COLO. -- President and CEO of the Phil Long dealerships Jay Cimino says he's against the $25 billion bailout plan because he doesn't think it will fix the problems. But he does believe the industry needs some sort of help, just not a blank check.
"When I was growing up there was a lot of pride that you could have a Chevrolet Bel Air two-top or Galaxy or Dodge or Chrysler," said Cimino. But today, Cimino said that sense of American-bought pride has been sold overseas. "It has become cool to drive a Honda or Asian car. It's become un-cool to drive an American car. "
While Cimino blames the media and government for what he calls the anti-American mentality shift, he knows the key to success means winning back the consumer.
"Consumer confidence is very key--it's really the backbone of the car industry," explained the CEO.
Like other critics of the bailout, Cimino doesn't believe throwing billions of taxpayer dollars at the industry will help reform the root cause of U.S. automakers' lack of competitiveness.
"What we have to do (is have the) leadership of our country, and media and government and other entities that are so powerful on television have to stop bashing anything American and become more flag wavers," said Cimino.
That along with offering government incentives like tax credits, or small rebates for buying American vehicles Cimino believes would be a better solution to the current crisis.
When asked whether he felt dealerships need to do anything more to attract consumers and make them feel that an American car can beat the foreign built competition Cimino said this: "I think, we as car dealers, from our lot people all the way up, we have to feel we have the absolute best product so we can impart that to our customers. I think it starts there."
Below is Jay Cimino's letter to lawmakers posted in its entirety:
November 17, 2008
The American Auto Industry is in a war we must win!
I thought I would write you in order to give my take on and what I think some of the solutions might be. The industry needs a hand up not a hand out. We must remember in a free enterprise system the consumer is KING especially when driven by patriotism. When Harley-Davidson went broke in the1980s, it was the consumer then and now that not only took it out of bankruptcy, but in the motor bike industry is still number one. The same can be said of Mustang, Jeep and yes, the Ford F150, a leader in truck sales for 33 years!
To begin with, most of the things being said about the auto industry might be true. I believe the executives were short-sighted for profit came well ahead of a long term vision given the unresolved problems of the oil industry. I am also not one to believe in conspiracies but I do believe there has been an anti-American movement in the last 30 years that has affected not just the auto industry but many American brands such as McDonalds, Sears and Wal-Mart just to name a few.
One can remember Michael Moore's "On A Clear Day" in which he bashed General Motors. Other examples are when NBC wanted to illustrate that a Chevy truck would explode on impact and on November 17, 1992, placed an igniter in its fuel tank. Others are the Ford Mustang, Chevy Corvair, Ford Pinto and most recently Ford Explorer.
On a personal level, NBC (Channel 9) in Denver cost Phil Long Ford millions when they decided to target car dealers. After an investigation of the facts it was found the allegations were false yet we received no compensation for the damage nor even a simple apology.
Both American manufacturers and car dealers have been targeted. The result is the perception by the American public that it is cool to drive Toyota or Honda. As a kid growing up, it was cool to have a Chevy 2-dr hardtop or a Ford. Not so today with our young citizens. Even people in their later years find it cool to drive a Honda or Toyota.
This movement has created an incredible problem with the industry including their problems with labor that has resulted in us not being able to compete on a fair basis. As you know, it costs $1500-1800 more to build a car in Detroit than it does in Indiana due to the legacy cost. Detroit is not able to be competitive. Additionally, the industry has gone from 16 million in cars and trucks to 10.5 million and some say it might go to 8 million in 2009. Consumer confidence has eroded!
A bail out for the auto industry is not the fix in my humble opinion. A bail out does not solve the problem for the short term or long term. As you can see the American public is still not bought into the financial bail out nor will they buy into the auto industry.
Over the last 100 years, the consumer has always been the solution to economic growth. A lack of consumer confidence will only continue but I believe there is a fix. Therefore, the fix may come in three different ways.
1. Leadership:
The Democrats along with our new President must lead the way for the consumer to know it is okay and good to buy American. It is actually cool. I know that our President-elect drives a Ford Escape. That is a start for American manufacturing. We noticed John McCain drives a large Toyota SUV. When he was in Detroit during the campaign he told the auto workers that they would need to be re-trained. I do not believe he gets it. THE AUTO WORKERS WANT TO BUILD AMERICAN CARS AND TRUCKS.
2. FINANCIAL:
a. MANUFACTURER - A short-term loan if there is a need with the manufacturers. We must look at this as an investment to be repaid by future sales success.
b. CONSUMER- People need their cars and trucks and will pay for them! Financial institutions must be able to loan money to a customer with a 600 or better credit score. Incentives could be offered in the form of tax credits and cash rebates.
3. Consumer:
The back bone of the entire economy is the consumer and therefore the real answer. Recognizing the American auto industry as the back bone is essential to our great country. Detroit has and can compete in this market with their great products. They are not able to compete economically with the legacy costs caused by mistakes made by the auto executives, labor, government regulations and the media that made it uncool to drive American. Those issues must be recognized and therefore resolved for any long term solution. Rather than bailing out the manufacturers, I believe incentives can and should be given for buying American cars and trucks that result in increasing American car and truck sales, Detroit, and thus consumer confidence. Let us not forget World War II and how the Auto Industry rebuilt the American economy. World War II was won not only by our military but by the pride of every American.
One only has to look at the great American products of the '50s: T-Birds, Corvettes, 2 dr Hardtops, Sports Sedans and even Sports Wagons. This example of pride can be in our reach but it will take great American innovation and great leadership from industry, government and yes, even the media. This power can and should be harnessed for the good of all people.
Sincerely,
Jay Cimino
President/CEO
Phil Long Dealerships
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