Guest Blogger: Paul Ingrassia
I've covered the auto industry for 25 years, but during my research for Crash Course I discovered much that I hadn't known about the dynamics of Detroit's near-collapse. For example, how senior auto workers could (and did) invoke "inverse layoffs" to get paid for not working. Or how Honda managed to keep the UAW-- and "inverse layoffs"-- out of its American factories only because its managers in Ohio bucked their bosses back in Japan.
I was surprised at the extent to which GM executives bet the company, once the biggest and richest on earth, on sub-prime mortgages and SUVs, which proved to be big-time losers. Ford, meanwhile, barely avoided bankruptcy by zigging every time that GM zagged; it hired a new CEO, sold brands such as Jaguar and Land Rover that it couldn't support and steered clear of the home-mortgage debacle. As for Chrysler, President Obama's advisors were sharply divided on whether to save the company last year, forcing Obama himself to make the call in a dramatic meeting in the Roosevelt Room of the White House.
The Detroit bailout is arguably Obama's biggest domestic policy success to date, because the president insisted on tough terms in return for the federal aid that got GM and Chrysler through bankruptcy. GM had to shed brands, and "inverse layoffs" were consigned to history. Washington Post book critic Jonathan Yardley, wrote: "In order to understand just how much of a mess (Detroit) was-- not to mention how it got that way and how, if at all, it can be cleaned up--you really need to read Crash Course.'" Obviously, I agree.
-Paul Ingrassia, author of Crash Course


