David Cole Doesn't Like the Media

Response to Ben, Dec. 8th: The state's revenue didn't decrease by bringing a manufacturing plant to the state. It just didn't increase by the amount some feel it should have. I've never seen a city/state not offer tax breaks to a company to bring in jobs. If the citizenry is up in arms about this, they need to vote the bums out. Most of the public would rather have a job than not, that's why this practice continues, and Ben knows this. It is meaningless to quote what other states might have sacrificed to bring in jobs to their state at different economic times. Again, not having a job doesn't bring much money into the state coffers.

I would posit that Mr. Cole and the auto industry do not understand manufacturing given their current position.Res ipsa loquitur:the fact speaks for itself.Extraordinarily ancient concept, even the FAILED Roman empire 2000 years ago unerstood it.But you know I have to hand it to Waggoner. Even he understands what Wall Street does not.You have to at some point take some portion of responsibility for your actions something even Douglas MacArthur didn't understand.

Gee Mr. Cole the first thing you do is not insult the intelligence of the people that you are begging help from.

Now this same left winged media is trying to blame the credit crisis for their losses. One example is in the NY Times having to mortgage their skyscraper. Oh My LORD! The CREDIT CRISIS??? What pathetic attempt to blame their shareholder abuse and ineptitude on the ECONOMY! These left winged media companies were losing their ratings and profits even at the pinnacle of the economic bubble. What was their excuse THEN???? “The global economy and stock market isn’t the reason why these companies are hurting. These companies will wither on the vine and their Boards as well as their CEO’s should be ousted for breach of fiduciary responsibility. Their subscribers and/or television ratings have fallen precipitously as they have allowed their editors to routinely abuse the assets of shareholders by converting what were once objective news organizations into untrustworthy, left winged propaganda machines that should be forced to reorganize as 527s. If they had not undermined their credibility to this extent, their ratings would be higher and they would not be losing so much money. These people should be sent to prison just like John J. Rigas, who built the Adelphia Communications Corporation into the country's sixth-largest cable company, who was sentenced in 2005 to 15 years in prison for looting hundreds of millions of dollars from the company's coffer. These people have done the same thing. They arrogantly treat these companies as though the shares were 100% privately held by the DNC.” There's a good column on this at http://www.tableofwisdom.com from Oct 24th called "Liberal Media withering on the Vine" (Click MrArbitrage on Markets tab)

O Governor, Won't You Buy Me a Mercedes Plant? E-MAIL Print Reprints Save Share Linkedin Digg Facebook Mixx Yahoo! Buzz Permalink By ALLEN R. MYERSON Published: September 1, 1996 FOR Alabama, first in little but college football, the quest three years ago for the nation's only Mercedes plant touched deep, unrequited desires. ''We're going to get Mercedes and we're going to make them love us,'' Gov. James E. Folsom Jr.'s wife, Marsha, told him and anyone else at the mansion who needed bucking up as dozens of states courted the auto maker with costly promises. Today, a Mercedes plant sheathed in gleaming metallic panels rises from the pine forests of western Alabama, where even convenience stores have been few. Local politicians and Mercedes executives continue to celebrate their victory. They expect 1,500 new jobs at the plant and 15,000 to 17,000 related jobs in the state. But the auto maker's affections have cost the state dearly. Tax breaks and other subsidies are pushing $300 million. That amounts to $200,000 for each job -- 18 times what Tennessee paid for a Nissan plant in 1980, more than 7 times what Tennessee paid for the General Motors Saturn plant in 1985, 4 times what Kentucky paid for a Toyota plant in 1985 and 3 times what South Carolina paid for a BMW plant in 1992.

May 11--BMW Manufacturing Corp., often hailed as the crown jewel of South Carolina's economic development effort, has never paid any corporate state income taxes. Financial statements obtained by the Herald-Journal show the company claimed losses of $710 million through Dec. 31, 2000. The state Departments of Commerce and Revenue confirm that BMW has not paid corporate income taxes since the first car was produced in 1994

Is David Cole trying act like he's protecting UAW? How about other media in past weeks who frequently criticize the Southeast where forign automotives are made of. U can't force the consumer to buy american cars unless Detroit get its act together.

I have seen Mr. Cole on numerous programs over the years, and I can say this is the first time I have seen him get so, well animated. He is always well informed and presents the data in a way that the layman can understand. While he did get a tad testy, I think he had some points. The current problem indeed is related to the credit crunch and the fact that folks are NOT laying out a lot of cash unless they HAVE to. Our President and his money people, with the assistance of the Congress, did a wonderful job of turning the Freddie Mac Fannie Mae problems into a "Sky is Falling" event of biblical proportions. When you have those people screaming that bailouts have to get done in 15 minutes or the economy will collapse, what do you THINK the effect will be on the public at large? This is an very complicated problem that even my MBA classes have me straining to completely get my hands on. But to blame this CURRENT problem entirely on the Big 3 is just not correct. Without the credit crunch and the hysteria that everybody is going to lose their jobs tomorrow, there would be issues, but nothing like we are seeing today.

I get a kick out of the fact that the UAW hires all these experts that tell them what is going on. If the UAW was so smart, why didn't they buy the companies and run them theirself? Purhaps the UAW should have been included in the strategic planning of the companies, looked into their own future and come up, hand in hand with management, a complement of vehicles long before the gas prices soared. Instead the only worried about what benefits they could get to fill their own pockets. Yes, management did a lousey job and the UAW only negotiated their side of the greed equation. NO BAILOUT....GREED AND STUPIDITY DON'T NEED TO BE REWARDED!!!

I love it. Dave Cole is not living on our planet. He is so far off base. To assume that we as consumer are so stupid that we don't know quality is a discredit. If the best selling cars are American made by Nissan, Toyota or Honda then the consumers have spoken.... in the end its the consumers that decide what they want and if its going to sell.

If a guest says, "You don't understand", the correct response is, "Tell us what we don't understand". Especially if the guest isn't O.J., and he has a Ph.D. on the subject matter. Mr. Cole had points to make but you interviewers wasted time getting into a huffy spat. Sure, you two were polite about it, but you still came off as defensive and a tad insecure.

It's not "David Cole doesn't like the Media", it is "David Cole doesn't like the ILL- INFORMED Media".

I am amazed that the media and so many so called experts on the news commentating about the automobile industry, but have no basic knowledge about this industry. I am glad that David Cole, the most respected auto industry expert, had a chance to tell you that you and the media know almost nothing about the industry, but judging the industry. Remember this saying for the rest of your carreer: THE WISE HAS SOMETHING TO SAY, THE FOOL HAS TO SAY SOMETHING !

i watch your slot everyday and have never heard a more arrogant person as this cole. you,me everybody who does not agree with cole is stupid. where does the funding for cole come from. we are at least four countries now with different outlooks. cole and the obamareich have one me another. san fransico another entirely. lets just split up before this gets ugly. and i get to keep fox biz in high def right?

I believe David Cole is spot on with his comments and understanding of the automotive industry and in particular, the big three. I have been in the automotive industry for over twenty years, as a supplier to all OEMs. I have been to over thirty assembly plants and have seen the good and the bad, from both the domestic and the transplants. If the big three are left to go into bankruptcy, I strongly believe our country would go into a depression. The number of supporting suppliers and other small businesses would be forced to close up shop. Unemployment in this country would be staggering! GM has spent over $105 Billion the last 10 years on legacy costs. Toyota, Honda, Nissan, etc haven't had the face this obstacle. And will never face it in my lifetime. The US government has to level the playing field for the domestic automakers. Financing restrictions must be opened up, the big three have got to trim more waste, and I would like to see the execs at Citi and AIG etc. on capital hill getting the once over by the people of the US.

Here is some more information that needs to be considered as well in the following link you will find a short video that sumarizes much that GM has already done to help themselves including negotiating a wage rate for new UAW employees of $14.20 per hour as well as several other links to information related to the current situation. checkout the link http://gmfactsandfiction.com/ Domestic Brands Score Highest in Consumer Ratings According to Biz360, a media and market solutions provider, consumers are expressing more positive comments toward American brands than for Japanese automakers. Basically, the company gathered roughly 300,000 online opinions about midsize cars from Ford, Chevrolet, Honda and Toyota. The data was pulled from such sites such as Auto Mall USA, Edmunds.com, IntelliChoice.com and Yahoo Autos from October 31, 2007 through November 1, 2008. The company discovered that Ford and Chevrolet are ahead of their Japanese counterparts when it comes to consumer perception. Officials noted that Chevrolet (63.25), along with Ford (62.11), scored higher than Honda (58.45) and Toyota (60.02) on Biz360's “Net Advocacy” rating. Get the full report at this link http://web17.streamhoster.com/ddc/GM/eNews/200812/DomesticsScore.pdf The folowing link is a summary of why GM needs a loan from the U.S. government, their plans to put the money to productive use and how it will make GM viable for the long term. http://web17.streamhoster.com/ddc/GM/eNews/200812/Congressv2.pdf PD

Cole is right. You are only informed of part of the information and also running on outdated information from percetions that only follow facts. Taking only some of the statistics to drive a point of view is no better than what the "other media" has done (per Bill O'Rielly) taking partial rating statistics to say that Fox News is not leading in the ratings. One can find statistics to make most situations look good or bad. It is only when the whole picture is understood that a fair judgement can be made. Rather than calling someone with the automotive experience of Mr. Cole wrong based on a few statistics why not seek to understand where he is basing his comments from to be sure that you have the whole story? Sure you should challenge it and ask about conficting information but allowing him only a few seconds on an inverview and then accusing him of demeaning comments because he challenges you regarding you lack of complete knowledge of an issue seems arrogant and not truely trying to understand the issue. I have seen first hand the excesses of the automakers of years past and the HUGE recent changes to really do something about GM's competitiveness from the current leadership. This ranges from negotiations with the UAW for lower wages, getting our from under health insurance cost, structural cost reductions, no pay increases and bonuses for salaried and executives, capacity adjustments through plant closings, quality improvements, especially in new products, productivity improvements (Check out Harbor reports), Awards for Car of the year, Hybrids, Advanced propulsion development, etc. etc. They balanced these needed new vehicle developments with significant cost saving plans and were on track with a plan (a tight plan) to be in over the hump begining in 2010 but the recent financial issues and recession has driven things to the point that they cannot get there without the help. I challenge you to spend time with Cole and others from his position not jsut current public opinion and outsiders statistics to really understand the whole issue not just the immediate short term situation or older perceptions that have not been overcome. PD

Wow The only thing that can be said is this guys research is biased. You can tell who pays his bills. I think you guys do a good job showing both sides of the Detroit dilemma. It kind of breaks your heart when you see hard working folks in the plants building cars that probably won't sell anytime soon. The passion of the mayor in the union hall almost got me to change my mind on what should happen. In the end though we all know that this bailout is just that. The term bridge loan is folly and something to try and appease an angry nation. Instead of coming up with solutions to their own problems they come begging for a handout. I wonder how many steps they would let me climb up Capital Hill if I lead a contingent of Pool and Spa serviceprsons whose customers stopped paying their bills but continued using us as long as they could. My bet is 2 before they turned us away or arrested us. I have to refer to Elizabeth MacDonald's blog now that shows just how much conflict of interest there is in Washington and the lack of ethics our leaders pocess. Chaulk up another win for the big guys and the ever tighting noose around the little guys throat.

Dave Cole wouldn't be related to Ed Cole (former GM CEO)would he? Whether the media or us rubes (the public) understand the auto business is beside the point. The real problem is whether the Detroit auto business understands the auto business. Based on Mr Cole's attitude, I think the answer is a resounding NO! It was just more of the same "we Know best, you ignorant lumps!". I guess this is part of their overall plan... you know go from 95% market share and huge profits from the 50s to 35% market share and equally huge losses today. When will we (the evil customers) ever learn? We...forced Detroit to build overweight gas guzzelers, stifle inovation, skimp on safey... for decades! If Detroit is ever going to clean up our mess it's our responsiblity to lend them 120 billion dollars. This will allow them to sell us even more overweight gas guzzelers. A whole lot more if they are going to pay back the 120 thousand million dollars.

My comments are being removed, thought you wanted comments?

I do not like the media also, they are controlled, and trying to figure why?

Can we talk? Lack of confidence and lack of credit is a major problem not only with the the big 3, but all areas, such as most all shopping malls, etc. Perhaps the biggest factor is that people are running scared. They know there is nothing backing the dollar, that the country is broke. They know this because the goivernment is not taking into consideration the large amount of truth news and opinions being put forth on the internet. Many things are very scary, like the US is going to collapse around Febuary 2009. Also, that there is a new money already printed called the Amerio, and that Canada and Mexico with the United States will become one country called the North American Union. I know many people that are stocking up on long lasting food supplies, and these people are not fanatics. Washington has done little to supply transparency with the bailout monies, as will as next to nothing for accountability to the people that caused this financial mess. However the big 3 have been raked over the fire pit. And for the uniformed, corporations use corporate aircraft because there are 4,200 airports that the airlines do not serve, where business is performed with suppliers for the auto industry. I wonder why the news media did not come to the aid of the big 3, and state what I just did about the 4,200 airports?

Dr. Cole certainly has his points, there are many in the media that do not understand or have not followed the auto industry over the last 30 years. There is certainly plenty of blame to go around. In many cases what GM has done over the last 30 years has not been good. The lack of quality, the unsupportable contracts the duplication of models and vehicles absent of any styling and design have brought us to where we are today. Add the cafe standards and the current credit situation and you have a once pillar of the free market place on its knees. Did they do things wrong? Yes! Did the government do anything to help or did they add more laws and costly regulations? Did congress perform there oversite on Fannie Mae and Mac? Is it right that billions are being passed on to banks in this country with few questions asked? If the current monetary situation did not exist today would GM be able to make it to 2010 without government loans? These questions maybe some of the few that the media may want to also consider.

Cheryl, Why does David Cole defend the indefensible??? I gave up on the Big Three years ago. In 1995, I had a Dodge Neon( The one had the cute "Hi" ads) After four years, the front speakers died and I was forced to use the back speakers. That was traded in for a Dodge Intrepid. Good cruise control but I had an engine module go on me five times in one month. Then a year later when it hit 90,000, the head gasket failed. I had Hondas and Isuzus that lasted twice as long. I went back to a Honda Accord and a Honda Odyssey and had no problems except changing the lights and batteries. Bob H

I don`t believe that Mr.Cole hates the media,I believe that he hates facts that are wrong.I have worked in the automotive industry my whole adult life, and I understand his frustration in trying to explain the facts to people that does not have a clue what has happened to the UAW workers in the past few years.If you want the real hard truth ,please invite my UAW president for Q and A.he will explain the facts to you.

Cheryl___David Cole was a little overbearing alright, but I guess he feels strongly that the auto industry is being portrayed unfairly by the media and others. Many people are convinced that bankruptcy would not work in this particular time as they could not obtain credit to reorganize and would end up out of business. I have trouble believing all those calling for them to sink or swim have considered the results of that happening. It could cost our nation many times more to try to relocate and find jobs for millions that would be thrown out of work if the auto companies and related industries fail. After our neighborhood car dealers close the doors for good, and many of us have to go great distances for another vehicle to drive or to get repairs made, it may not look like such a smart deal to have let them go down the drain. Also, with no competition, what will stop the foreign companies from raising prices to any level they wish? We had better think twice before abandoning our American automobile companies.

If you don't think the credit problem is the root of the big three's current request for a bridge loan you should look for another line of work. Toyota just today announced they were making further production schedule cuts. The automobile is the second largest purchase most people make after their house. They need credit to make those purchases. The recent J D Powers study has all GM's products in the top 50%. They have 30 choices that get 30 MPG, more than any other supplier. This is not a quality issue. The automakers didn't cause the credit problem, but the financil industry that did is not asking congress for a loan. They don't have to because congress bailed them out with 700 billion without them even picking up the phone. Who's asking for their plan? Will they be back for more before it's over? David Cole is THE leading subject matter expert on the auto industry,your not.

I think David has a point about the media not getting all its facts right. Why doesn't the media focus on why the US is the only truly free market for auto sales in the world. Every other country has some kind of barrier to entry for US (North American)made autos but not the the other way around .... not exactly a level playing feild Up until this financial crisis the big three were selling a lot of cars and trucks ... did they need to change yes, did they blow an opportunity with the Clinton administartion (electric and high bred program that Gore started), looks like it now, but products like the new Flex from Ford, and the new CTS from GM are world class. I'd put my 2007 Chev Suburban up against any product made anywhere in terms of value and quality for the dollar, this includes Mercedes (which I also gave consideration to when purchasing). GM and Ford really are building better cars and trucks ... Its to bad most folks don't get that. PS. I do not work for GM, Ford, or any Auto related industy.

What kind of moron is Mr. Cole. Gm has lost hundreds of billions of dollars over the last five years. What "progress" is being made? Tucker made cars that had significant new innovations, and they went out of business. Just because Mr. Cole feels there has been "progress" with respect to car of the year award doesn't mean anything.

I used to work for Alan Mullaly back when he was running Engineering for Boeing, and later the 777 program. He's a smart guy and Ford was lucky to get him. He knows manufacturing, and Ford and Boeing shared a lot of knowledge about how we did business in the manufacturing world even back in the late '80's and 90's. Much of what Alan said in the hearings was right out of the Boeing playbook. That said, it's pretty obvious that Mr. Cole has a specific agenda which I can't blame him for (everyone does), but he was out of line and blowing some considerable volumes of smoke. I'd pay far more attention to Alan than I would to Cole if I were you.