February 22, 2009 12:14 PM

Ohio Gov.: Honda Needs Big 3 To Survive

By
Kevin Hechtkopf
Topics
In The News
(CBS)

Ohio Gov. Ted Strickland said today that a collapse of one of the "Big Three" American car companies would not only effect the other two, but would also have a huge impact on foreign car makers, too.

"It will impact all auto companies -- including Honda and Toyota and all the others -- because they have the same supply network," Stickland, a Democrat, said on CBS News' Face The Nation. "This supply chain is very fragile, and if it starts to collapse it could have a cascading effect that could quite frankly cripple an industry that has been so vital to the economy of our entire nation for so long. So it's very important that the auto industry gets the help it needs to survive."

Strickland also told host Bob Schieffer about conversations he's had with officials from Honda about the problems facing General Motors, Chrysler and Ford.

"I've had officials from the Honda corporation come to me, say to me, 'Governor, we're not usually in the business of advocating for our competitors, but it is so important that the auto industry and the big three be preserved.'"


More from Face The Nation (2.22.09):
  • Three Governors Say: We'll Take Stimulus Cash
  • HUD Chief Defends Obama Housing Plan
  • Read the full transcript> (pdf file)


    • Add a Comment See all 29 Comments
    by workinginflorida2 March 6, 2009 9:08 PM EST
    I've worked several times for companies that were doing well and had great products and a great market and hard working employees but then were brought down by poor management. That is what is happening now with some of the automakers and other companies. If the management doesn't plan for the worst and the people in charge get greedy and start thinking only short term and how they personally are affected, then they will not survive when reality kicks in. We need to stop molly-coddling these so-called managers and let them fall on their faces and then let the people with real talent for management take over. For years people have tried to tell me that I was a cause of the problem because I purchased foreign autos, but my thinking was that if the domestic autos were at least competitive with the foreigh autos then I would not need to buy foreign. I work hard for my money and want the best value for my money. I can't afford a new car every few years so I buy a car that will last a really long time. Less wasteful anyway because anything that lasts a long time doesn't not have to be thrown in the trash. If you make a quality product that will last then your company will last.
    Reply to this comment
    by gmccoy3 February 23, 2009 1:41 PM EST
    The foreign companies don't want to buy the big three because it would be a waste of money. Why throw good money after bad? Honda and Toyota have had a great reputation for years and still have. As far as JD Power awards, etc., one has to wonder who is paying them off? There is no comparison to the big 3 and a Honda or Toyota. As far as a foreign company buying one of the big 3, they could do it, but there would be just as many layoffs, because the smart thing to do would be close all the plants to get rid of the unions. Start over with a new workforce of non-union employees and tell the UAW to go to hell.
    Reply to this comment
    by downtowner97 February 23, 2009 7:13 AM EST
    Honda builds cars in Marysville, Ohio and ships them to Japan. They are not considered to be an American car company, even though they employ thousands of Americans.

    Chevrolet has 19 foreign plants, and plans to keep only 14 American plants open. Chevrolet is considered to be an American company.

    We need to let GM, Ford and Chrysler fail. Honda, Toyota and other "foreign" car companies operating in the US will get a larger share of the business, and can hire the more competent workers who are laid off from the failed companies.
    Reply to this comment
    by excelsior9 February 23, 2009 4:51 AM EST
    Whats up Strickland? You want more money because of the Japanese connection? Do you really think you deserve more money because foriegn plants are in your state?Let Japan take care of their problems. We will take care of ours. They made the bold move to come to America, in my opinion to take over the market, but we welcomed them with open arms because of jobs. All we did is hurt our own auto industry by allowing them to make cars here. I say lets go back to the days when American auto makers were owned by Americans.
    Reply to this comment
    by actornaught February 23, 2009 1:44 AM EST
    I like the part (NOT) about how the 'pubs are happy to let alarming numbers of people that often have health insurance to sink into bankruptcy just because they get sick.
    Reply to this comment
    by actornaught February 23, 2009 1:26 AM EST
    Posted by taxed2debt at 09:32 PM : Feb 22, 2009

    YOU are a liar. The aforementioned tax break expiration are NOT against middle class americans. You're telling campaign lies, you lost, move along.

    And benefits? Americans compete with foreign workers that pay NO health insurance companies, the case in all modern countries but the USA. It's sick joke that that unions are more or less directly blamed for skyrocketing healthcare.
    Reply to this comment
    by ceb969 February 23, 2009 12:28 AM EST
    I think it is funny that none of the other car companies have try to buy one or all of the big 3. Most times when a big company is down somebody else tries to take them over. So are times so bad that no one wants to buy them out or is it The Big 3 so screw up that no one wants them.
    If one of the Big 3 file chapther they have a chance to get rid of the unions. Also drop all the people 40 and up.
    The game a foot, all we can do is sit back and watch.
    Reply to this comment
    by whitemale09 February 22, 2009 9:56 PM EST
    ...and Wall Street Repubicans blamed unions for trying to maintain 'middle-class' wages.
    Reply to this comment
    by therocket007 February 22, 2009 9:52 PM EST
    Most Japanese chief executives don't earn anywhere near the big paychecks of their Western counterparts. CEOs at Japan's top 100 companies by market capitalization earned an average of around $1.5 million, compared with $13.3 million for American CEOs and $6.6 million for European chief execs at companies with revenues of higher than $10 billion, according to an analysis of 2004-06 data by Towers Perrin, a Stamford (Conn.) human resources firm.

    It shows, too. Japan's corporate bigwigs might travel around in chauffeured cars and play golf on the company's dime, but they don't trot around in designer suits, shuttle between cities in private jets, or order up multimillion-dollar houses. And the moment the company's profits plunge, they often take one for the team. Last month, Sony (SNE) announced plans to halve the pay packages for Chairman and CEO Howard Stringer and his top lieutenants, while Honda (HMC) has said its board members will take a 20% pay cut.
    Reply to this comment
    by February 22, 2009 9:20 PM EST
    Wonder why Americans would be angry about taxpayers earning high wages? Despite UAW thing, Detroit autoworkers pay a big share of income taxes which takes some of the heat of the rest of us.
    Why aren't Republicans trying to get employers to pay other workers MORE, rather than driving down their quality of life?
    Soon, the GOP will have us either working in CHINA for pennies a month, or out of work altogether on welfare.
    We don't need more WalMart jobs, we need more high-wage jobs.
    Reply to this comment
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