2ndMDRebel
01-09-2009, 11:39 AM
Senator Barbara Mikulski
Senator Ben Cardin
Dear Senators:
In June of this year, I sent you both correspondence in which I outlined the indefensible position of the oil industry in pricing diesel fuel. While I asked for a reply, I received none, which is not only rude but exhibits a non-caring attitude towards your constituents. In the interim the oil companies, and particularly Exxon, have enjoyed record profits while the country is in the midst of the worst recession since the 1930's. This is the fruition of a manufactured price as opposed to a market price which brings me to the purpose of this letter which will be attached to the paychecks of my 500 or so employees.
Congress shares in the current American auto industry crisis and there is plenty of blame to go around. When oil prices reached $100 a barrel, it was common knowledge that the price was being driven by speculators and not the supply of oil. Congress refused to act to stop this speculation until prices reached $147 a barrel and gasoline was over $4 a gallon. The American publin has justifiably panicked and had stopped buying anything but high mpg vehicles. This resulted in catastrophic high truck inventories for the retail dealer who then ordered little or no vehicles from the factories which caused plant closings and manufacturer losses. Had controls of the speculators in oil prices been put in earlier it would have prevented the collapse of the pickup and SUV market which is what the American public was buying. The fact that oil prices today are about $40 a barrel and a gallon of gasoline in the $1.50's is proof of the speculation. The Ford pickup was and had been the number one selling vehicle in America for some time closely followed by GM pickups and all SUVs. Arguably, they should have built more high mpg vehicles before the crisis, but sales were low on this type of transportation and who would have forseen such sudden price increases of oil.
To this point Congress has bailed out the finance industry for 700 billion dollars with 158 billion going to AIG where non of whose executives have I seen appearing before any congressional committee to answer questions, and you are making the automotive manufacturers jump through hoops for 17 billion. When the 700 billion was offered to financial institutions, an executive of one of the largest banks in the US told me they didn't need the money but would get in line and take it and they did. He also told me three weeks ago that his corporate offices has instructed them to make no loans to any dealer representing GM, Ford, or Chrysler including mortgages or even equity loans on real estate. An automotive dealer's safety net has always been an equity position in his real estate in order to borrow money. Without this, his only options are to reduce expenses and personnel and that is what retail dealers are doing and will do. Isn't it ironic that you gave money to someone who didn't need it and that party refuses to loan it to someone who does need it and can repay?
Further, some southern Senators should be ashamed of their positions taken for their criticisms of the American car insdustry. Their states have given billions of dollars and property to foreign manufacturers who built factories only because of their state's concessions and the cheap labor force available. I recently read that GM's retirement payroll may exceed the payroll of their working labor force. This is an expense that the foreign manufacturers do not have along with labor unions. Additionally, the hourly pay in these southern assembly plants is around $15 to $20 an hour. This is far less than the wage paid to workers in US plants. My point is that this is not a level playing field, and to hold up foreign manufacturers as the epitome of how auto companies should be run is riduculous. In order to ensure long term success these expense structures must be brought closer together. How that can be accomplished is the real crux of the situation and not product. I also have Japanese and Korean franchises, and while I don;t have any Chrysler franchises, I can assure you that the quality of both Ford and GM products is at least equal to any foreign manufacturer. Further, Ford just certified a Fusion Hybrid at 41mpg which exceeds anything in its class and was also just voted the top quality product in its class above the Toyota Camry.
You may answer this letter if you so desire and I will give a copy of any reply to my employees, but I really wanted to inform them of the facts as they may affect their daily lives and they can come to their own conclusions. God Bless America.
Robert L. Bell
Chairman
Bob Bell Automotive Group
The above letter was attached to our paychecks today. What a way to start the new year.
Senator Ben Cardin
Dear Senators:
In June of this year, I sent you both correspondence in which I outlined the indefensible position of the oil industry in pricing diesel fuel. While I asked for a reply, I received none, which is not only rude but exhibits a non-caring attitude towards your constituents. In the interim the oil companies, and particularly Exxon, have enjoyed record profits while the country is in the midst of the worst recession since the 1930's. This is the fruition of a manufactured price as opposed to a market price which brings me to the purpose of this letter which will be attached to the paychecks of my 500 or so employees.
Congress shares in the current American auto industry crisis and there is plenty of blame to go around. When oil prices reached $100 a barrel, it was common knowledge that the price was being driven by speculators and not the supply of oil. Congress refused to act to stop this speculation until prices reached $147 a barrel and gasoline was over $4 a gallon. The American publin has justifiably panicked and had stopped buying anything but high mpg vehicles. This resulted in catastrophic high truck inventories for the retail dealer who then ordered little or no vehicles from the factories which caused plant closings and manufacturer losses. Had controls of the speculators in oil prices been put in earlier it would have prevented the collapse of the pickup and SUV market which is what the American public was buying. The fact that oil prices today are about $40 a barrel and a gallon of gasoline in the $1.50's is proof of the speculation. The Ford pickup was and had been the number one selling vehicle in America for some time closely followed by GM pickups and all SUVs. Arguably, they should have built more high mpg vehicles before the crisis, but sales were low on this type of transportation and who would have forseen such sudden price increases of oil.
To this point Congress has bailed out the finance industry for 700 billion dollars with 158 billion going to AIG where non of whose executives have I seen appearing before any congressional committee to answer questions, and you are making the automotive manufacturers jump through hoops for 17 billion. When the 700 billion was offered to financial institutions, an executive of one of the largest banks in the US told me they didn't need the money but would get in line and take it and they did. He also told me three weeks ago that his corporate offices has instructed them to make no loans to any dealer representing GM, Ford, or Chrysler including mortgages or even equity loans on real estate. An automotive dealer's safety net has always been an equity position in his real estate in order to borrow money. Without this, his only options are to reduce expenses and personnel and that is what retail dealers are doing and will do. Isn't it ironic that you gave money to someone who didn't need it and that party refuses to loan it to someone who does need it and can repay?
Further, some southern Senators should be ashamed of their positions taken for their criticisms of the American car insdustry. Their states have given billions of dollars and property to foreign manufacturers who built factories only because of their state's concessions and the cheap labor force available. I recently read that GM's retirement payroll may exceed the payroll of their working labor force. This is an expense that the foreign manufacturers do not have along with labor unions. Additionally, the hourly pay in these southern assembly plants is around $15 to $20 an hour. This is far less than the wage paid to workers in US plants. My point is that this is not a level playing field, and to hold up foreign manufacturers as the epitome of how auto companies should be run is riduculous. In order to ensure long term success these expense structures must be brought closer together. How that can be accomplished is the real crux of the situation and not product. I also have Japanese and Korean franchises, and while I don;t have any Chrysler franchises, I can assure you that the quality of both Ford and GM products is at least equal to any foreign manufacturer. Further, Ford just certified a Fusion Hybrid at 41mpg which exceeds anything in its class and was also just voted the top quality product in its class above the Toyota Camry.
You may answer this letter if you so desire and I will give a copy of any reply to my employees, but I really wanted to inform them of the facts as they may affect their daily lives and they can come to their own conclusions. God Bless America.
Robert L. Bell
Chairman
Bob Bell Automotive Group
The above letter was attached to our paychecks today. What a way to start the new year.