Interview: Rick Wagoner

Dear reader. So far on this site, I have dished out merely my own opinions, buttressed occasionally by a cursory review of the New York Times or Us Weekly. However, now that the time for partisanship has passed and a new era of accountability has begun, I feel the need to go further. Dissatisfied with the quality of questioning provided by the fourth estate to our leaders during the election, I have decided to pursue interviews of my own with leading newsmakers of the day. Lacking the facility to broadcast these in video or audio form, I must content myself in the near term with posting transcripts of the interviews. When and if my readership soars into the double-digits, I will invest in the wherewithal to post the multimedia versions. In the meantime, here is my first interview. Enjoy.

THIS IS OF INTEREST: Today, I am fortunate to be joined by General Motors Chairman and CEO Mr Rick Wagoner. Mr Wagoner, thank you for joining me.

WAGONER: My pleasure.

THIS IS OF INTEREST: Mr Wagoner, how critical is the condition of the American car industry?

WAGONER: Very critical. Very critical indeed.

THIS IS OF INTEREST: If you had to put it in medical terms, is the patient chronically ill or having a heart attack?

WAGONER: Are you familiar at all with Walt Disney’s current condition? I think that is probably the most apt analogy available to us in the medical sphere.

THIS IS OF INTEREST: So, how did we get into this position?

WAGONER: Well, it’s a very complicated situation with many, many factors at play. International trade, the pace of innovation, climate change and the growing importance of renewable energy sources, the current economic downturn of course, changing consumer preferences, the declining competitiveness of the American regulatory and tax environment … there’s a host of factors.

THIS IS OF INTEREST: Could it be put more simply that American car manufacturers don’t seem capable of making cars that Americans want to buy?

WAGONER: It certainly could be put that simply, if simplicity was the goal here at the expense of all other things, yes. But I think that is grossly unfair.

THIS IS OF INTEREST: In what sense?

WAGONER: Well, in the sense that the American car industry – in very large part – has been the victim of circumstances well and truly beyond its control.

THIS IS OF INTEREST: What circumstances are these?

WAGONER: Well, for starters, of late the American consumer has become fashionably obsessed with fuel economy.

THIS IS OF INTEREST: When you say of late, how recent is this development?

WAGONER: Oh very recent.

THIS IS OF INTEREST: Well, when did it start?

WAGONER: 1974.

THIS IS OF INTEREST: That doesn’t seem very recent to me.

WAGONER: Well, in journalistic terms it probably doesn’t. Relative to how long it takes you to read through your question cards and pop-off down to the lobby bar for a couple of single malts with your media elite comrades, I don’t suppose it does. But in manufacturing terms that is practically instantaneous.

THIS IS OF INTEREST: Why is that?

WAGONER: Oh dear, it’s time for manufacturing 101 is it?

THIS IS OF INTEREST: If you don’t mind.

WAGONER: Look son, making cars is a very big undertaking. Lots of factories, with big machines and lots of highly skilled employees. The machines are designed to make a certain type of car part and the employees are trained to work on a certain type of machine. When you decide to make different types of cars, you have to design and build different types of machines and train people to use the new machines. It’s a very significant undertaking.

THIS IS OF INTEREST: I see. And how long would all of that take.

WAGONER: Potentially as long as two years.

THIS IS OF INTEREST: So why wasn’t this all taken care of by 1976?

WAGONER: Oh dear, oh dear. You may only be familiar with the dynamic industrial relations environment in which we operate today, but I’m afraid you’re woefully ignorant of the highly contentious environment that prevailed in this country for most of the last 50 years. The minute we started talking about changing things down at the plant we would have had a full on strike before lunchtime.

THIS IS OF INTEREST: So, how did you respond?

WAGONER: We began a series of very carefully structured negotiations.

THIS IS OF INTEREST: And how long did they last?

WAGONER: They’re still going. As a matter of fact, can we keep this short? I’ve got to be over at the UAW by 3.

THIS IS OF INTEREST: Certainly. You were saying that the American car industry has been overtaken by events.

WAGONER: Exactly. The American consumer, quite suddenly, decided that they wanted a completely different type of car than the one we have traditionally offered them.

THIS IS OF INTEREST: What type of car is that?

WAGONER: Compact, fuel efficient, comfortable, stylish, well appointed and affordable.

THIS IS OF INTEREST: And what types of cars do you offer?

WAGONER: Oh keep up son: big, gas guzzling, shoddily made, pig ugly and above all catastrophically bad value for money.

THIS IS OF INTEREST: Hmmm… does that seem very sensible?

WAGONER: Well, it was enormously sensible for the better part of the twentieth century. We were just blind-sided by a development we couldn’t have foreseen.

THIS IS OF INTEREST: What development was that?

WAGONER: Competition.

THIS IS OF INTEREST: I see. So what happens next?

WAGONER: Well, it seems clear that the natural next step would be for the federal government to provide us with a small infusion of capital to assist us in navigating this temporary phase of market turbulence.

THIS IS OF INTEREST: How small?

WAGONER: I would think that $25 billion should see us through.

THIS IS OF INTEREST: Until when?

WAGONER: Until February of next year.

THIS IS OF INTEREST: And what happens in February?

WAGONER: There’ll be a new lot in power them. We can hit them up for another 25 billion.

THIS IS OF INTEREST: Mr Wagoner, thanks very much.