Miami-FL, November 24th, 2008

The GM, Ford and Chrysler have an important role, as a strategic deterrence, as a realible supplier of military hardware, as in the WWII, NATO, Korea, Vietnam, Golf Wars and Afghanistan. Their existence and operations is simply paramount to U.S.

No war can be won without transportation & logistics. They have to be helped, and maybe the oil industry have to help as well, investing on the green fuels segment of the structured loan.

All the big 3 (GM, FORD, Chrysler)of Detroit committed big strategic mistakes, in face of Japanese and other import competitions. They are paying now a heavy price, but they have a strategic value for the US economy and military.

The Miami Beach Auto Show.

For the past many years, the show at the Miami Beach Convention Center, was an important tradition in the economic landscape of Florida, but was never held was during such a daring difficult economical and social crisis. The show (is is a traveling show, like an elegant circus....now showing in Los Angeles) was the convergence point of new tendencies, new models, vision, new technologies and trends of this important industry: Automotive.

There is a great distinction between the quality design and craftsmanship of the European cars, spearheaded by the Germans (Porsche, Mercedes-Benz, BMW, Audi, VW) and Jaguar + Range Rover, and the domestic products, in between them, the Japanese and the Koreans. We are not yet taking into account the Big Italians, Alfa Romeo, Maserati, Lancia, and the rest of the bunch. In a small and limited measure, only some Lincoln and Cadillac models can hold the line of the luxury class against the Europeans and the big Japan-made cars.

The air was very thin: the public and the professionals are in the waiting for the decision by the federal financial authorities to rescue the big 3 Detroit automakers, not only for the American sake, for jobs & social value, but for tradition and military value of their products.

IMPORTANT STRINGS & TECHNICAL CONDITIONS HAVE TO BE ATTACHED FOR THE BAILOUT/FINANCIAL LOAN, LIKE A MODIFIED BUSINESS MODEL, EFFICIENCY, GREEN FUELS, PLUG-IN, HYBRID TECHNOLOGY, HIGH QUALITY, ATTRACTIVE DESIGN AND EXCELLENT POST SALES SERVICE.

THE SAME MEASURES AND CONDITIONS AND HELP HAVE TO BE GIVEN AS GIVEN TO CITICORP BAILOUT OF (MORE THAN 45 BILLIONS) OR AIG (115+ BILLIONS). The 3 Detroit automakers have the same (is not more) social component as the financial entities so fast and dearly rescued.

They not only employ, combined with support, dealerships and other, more than 1.6 million people (300,000 more than Wal-Mart), but their role, as a strategic deterrence, supplier of military hardware, as in the WWII, is simply paramount.

By Hedi Enghelberg  | hedi@enghelberg.com