a teen's take on . . . Detroit's auto industry
bankruptcy or loan?
Big Three's fate holds more than Detroit's future on the line.
Seth Samuels
CHRYSLER
I
t is a gross understatement to say that these times
are tough, and the fact that they mimic the 1930s
paints only a portion of this truly awe-inspiring
picture. From a virtually unpredictable economy to
tax dollars being passed around like Halloween can-
dy, uncertainty, fear and frustration continue to hover
in a freezing global market no matter how close one
is to the equator.
It seems the only bright spot lies in sweet crude oil's
deflation and, of course, in what we eventually learn
from all of this.
Nonetheless, the next speed bump has arrived
along this perilous journey, and who is to cross it
first? None other than the Big Three. Many argue we
are constantly tested for good reason. Well, this time,
I believe we are taking the final exam. From 2 million
jobs to $64 billion in wages, there's certainly a lot on
the line.
While many have fostered their own opinions
on what should come of this, essentially two sides
emerge: Should we loan to the American automakers
or should we let them file for bankruptcy?
The former position acknowledges how these com-
panies are ingrained in society both ethically and finan-
cially, and thus the crux of any prosperous economic
future. The latter follows a simple notion that arguably
creates the backbone of our country's free market ide-
als — every company, no matter its size, should have
the freedom to start up, operate and close, all at its
own risk of weathering the constant economic storm.
Both arguments have reasonable basis, which their
constituents hold fast to, thus warranting the tension
and separation in Washington as well as throughout
Vtithriting
ciS
towara mute innovation
well as present stability wif
the Big Three afloat,
the rest of the country.
Essentially, if Congress elected not to provide the
loan money, restructuring would occupy each of the
company's time, including the cutting and downsiz-
ing of struggling brands. GM is already discussing this
with Saturn, Saab, Hummer and several Pontiacs on
the chopping block; Ford is considering selling Volvo,
following in the footsteps of Land Rover, Jaguar and
Aston Martin; while Chrysler has discussed consolida-
tion but few specifics.
However, there is an important distinction to clear
up, and that is that bankruptcy doesn't necessarily
equate to a company closing its doors. As Ford sup-
plier Howard Taxe of Bloomfield Hills notes, it often
refers to the process of reconstruction.
"Chapter Eleven, like Chapter Seven, often means
that the company isn't ceasing production, but rather,
restructuring their operations," Taxe said.
This fact is especially important because a car is
a long-term investment, and many people may elect
not to buy a product from a company they view as
"bankrupt," when really that company may be going
through restructuring.
On the other hand, should the Big Three receive
loan money via convincing arguments and structured
timetables, a dispersal of monies to various sectors,
including alternative energy technology production,
employee benefits and pension plans, and incentives
for current models will be likely.
"There is no silver bullet," Taxe contends.
It is working towards future innovation as well as
present stability that will keep the Big Three afloat.
This is a concept that not only spans decades, but one
that Taxe feels is necessary if the American auto indus-
try is to remain competitive and gamer more clientele
both now and in the future.
Taxe put it well: There is no one answer to a com-
plex issue with more angles than one. Certainly a vor-
tex of emotions is swirling for the Big Three's survival
here in the D. But, as former GM engineering man-
ager Dave Caplan points out, even the seemingly in-
vincible Honda and Toyota have seen financial down-
turns and, with common suppliers, "they don't want to
see the Big Three go under."
And so the decision arises: Do we stick to Ameri-
can ideals and let the Big Three sink, despite their size,
in the name of free-market capitalism? Or do we dig
deeper into our tax-burdened pockets and plop GM,
Ford and Chrysler into the carpool along with MG,
Citi Bank, Lehman Brothers and the other economic
kiddies of our time?
Either way, billions of dollars and millions of jobs
lie in the balance, so we better make sure they're all
buckled up tight because with a bumpy road ahead,
they won't be the only ones asking,
"Are we there yet?"
Seth Samuels, 17, is a senior at Birming-
ham Groves High School.
Go to Int2t.com — click on this story
to share your thoughts.
balancing act from page Bi
Menorahs and snowmen share shelf space at Caine Wright's
house In Novi.
B2 teen2teen December • 2008
JN
mas," Callie said. "I feel it makes me more cultur-
ally rounded and less likely to form stereotypes."
Jillian Fellows, 17, of West Bloomfield is in the
same situation. Her mother is Jewish, and her father
is a non-practicing Christian. Both sides of the fam-
ily are fine with the fact the Jillian and her siblings
are all being raised Jewish. However, unlike the
Wrights, the Fellows do not have a Christmas tree.
They only light their menorah during Chanukah.
Jillian's family does go over to help her father's
side of the family to help them celebrate their holi-
days, especially Christmas. It is during this time of
the holiday season that the family exchanges gifts.
Like Callie's, Jillian's friends are also very sup-
portive of her being raised in an interfaith family.
In fact, they often joke about how she celebrates
"Chrismakuh."
Interfaith families do work. Look at the two ex-
amples of Jillian and Callie; both families receive
love and support from their families and friends. To
make the holiday season work, you have to be will-
ing to compromise. Being part of
an interfaith family can be benefi-
cial, too.
As Jillian Fellows said, "It's fun,
I get the best of both worlds."
Rachael Vettese, 15, is a sophomore at
Bloomfield Hills Andover High School.
visit JNt2t.com