Harvard Business Publishing

What does saving the dog mean?

I am not sure I agree that the government should bailout GM (or Ford). If companies are in trouble, there is something called Chapter 11: maybe you heard of it?

Chapter 11 allows companies to restructure themselves and a temporary protection from their creditors. Why can’t GM file for Chapter 11? I have not heard any good reason for it.

If money is injected into GM to maintain its current operation, then money is wasted: has GM released another version of the Hummer recently? Maintaining business as usual is not acceptable in these circumstances!

If GM restructures, then maybe some help can be provided: and only then! This has nothing to do with “the invisible hand” but more about common sense: if a company is going in the wrong direction, making it go faster won’t help. But if it needs help changing direction then that is another story: look at airline companies (several have used chapter 11 to restructure and are still around today). BTW, IBM changed without any bailout money.

If GM wants more money to stay afloat: I would say no.
If GM needs money to reorganize: I would say “show me your restructuring plan”! Isn’t it common sense?

David.

Before the government bails out the automotive industry, I would like to know where the "rescue plan's" money went. Everyone hurried to create a an agreement to avert the collapse of the financial industry and I see no positive result from the $750 billion that ostensibly was given to promote stabilization of this industry so lending to individuals could spur the economic growth upwards.

Given that scenario, the automotive industry now seeks a "rescue plan." Reports indicate the government would consider this a "bridge loan" accompanied with "strings."
If the government continues to inject money in order to stabilize industries' failures, where does it stop? What would be next, hospitals failing? A domino effect!

Industries have a life of their own and individual companies such as GM and Chrysler have CEOs who are responsible for the successes and failures of their companies. As Lee Iacocca succintly states" "Where has all the talent gone?" These individuals and their boards of directors bear the ultimate respnsibility for their companies and if the industry, as a whole, fails, it is individual companies causing industry failure. There is no reason for the government to step in.

While jobs lost and earnings plummet are disheartening and frightening as we watch the economic power of this country fall, we cannot expect the government to take control or provide ready assistance. The backbone of this country was developed by individuals with innovative and entrepreneurial spirits. Perhaps, this is that time.

The constitution provides for the separation of government and religion and so it should provide for the separation of government and business.

I say this with a heavy heart; I am reliant on a fixed income and have watched with fear as my investment portfolio drops. Now down 37% for the year, I wonder, as an individual with a disability who pays for health services out of pocket, how I can recover the money I am losing. "Sit tight" we have been here before; not like this. So, even though many individuals are suffering the same plight, the government is not the responsible party.

I wish for business leadership that is confident and motivated to make this the country I remember. I wish for government to be less concerned with helping others (at this point) and more concerned with getting itself together.

With all the events unfolding currently, I recommend that we all resist ideological arguments and stick to pragmatic ones. If we the tax payers do not bail out the automotive industry represented by the domestic big 3 by pumping upto $75 billion, then we will be saddled with a tab much greater than that - some estimate that tab to exceed $100 billion in the first two years of GM's collapse. To me, pumping $75 billion with some hope of recovering that eventually, securing a whole lot of jobs and saving one of the last bastions of engineering prowess left in this country (US) seems like a bargain or a deal with a great ROI. (I wish someone would argue about how the people should vote in some of the regulators rather than just the president - perhaps a topic for another blog.)

With all the events unfolding currently, I recommend that we all resist ideological arguments and stick to pragmatic ones. If we the tax payers do not bail out the automotive industry represented by the domestic big 3 by pumping upto $75 billion, then we will be saddled with a tab much greater than that - some estimate that tab to exceed $100 billion in the first two years of GM's collapse. To me, pumping $75 billion with some hope of recovering that eventually, securing a whole lot of jobs and saving one of the last bastions of engineering prowess left in this country (US) seems like a bargain or a deal with a great ROI. (I wish someone would argue about how the people should vote in some of the regulators rather than just the president - perhaps a topic for another blog.)

If I wouldn't spend my money to buy GM products, why should the government think it's okay to spend my money to "rescue" GM? The marketplace should dictate what happens to GM.

The scare tactics being used on us are wrong. As the big three sink, other automakers who understand the market will grow, jobs will move from the big three to the better companies, and the industry will thrive.

Please stop wasting my money. It makes no sense for me to be frugal if the government takes money from me to select which industries survive. We have a gang of Cuffie Meegs in DC.

The dog and car analogy is somewhat misleading, since the life or death of the dog in this case is important to us (the U.S. economy). I'd suggest the metaphor of an ailing (poor business model) farm animal (GM) being attacked by wolves (rapid rise in fuel prices, rapid economic downturn). You need the animal in the short term, but given time you could get another - and you may need to anyway. You might succeed in fending the wolves off this time, but the animal is still sick and may not survive the cure. You are going to try to keep the wolves at bay, but probably only to buy yourself time.

Rosabeth Kanter's comments (Needed - a Massive Culture Change, elsewhere on this site) about "Life, Liberty, and the pursuit of Happiness" combined with a reminder of the true nature of the American Dream are apropos: American capitalism is the opportunity of success, not the guarantee of it. The fundamental nature of capitalism must include both success and failure for the system to function (else both the positive and negative feedback effects are impaired). Where government can help its citizens is by damping the system, cushioning large changes and ensuring they all have the ability to obtain the tools to succeed.

Tom Davenport (Time to Renovate the Economy, elsewhere on this site) points out astutely that will this much "sickness" in the economy, the U.S. needs to find a strategy to health and then frame its actions around it. Is pouring money into GM (or any automaker) going to make it more Toyota than Toyota in the long term? If not, it would be better to cushion citizens against its fall and get them onto the new strategy. It's tough love, but propping-up a dying company serves no one well in the end. Ireland thrives despite a lack of major domestic production by being a good place for others to do business, and the U.S. may need to borrow that plan as well.

Batten down the hatches, it's going to be a dirty night ...

Well, this sounds like a debate on being a little bit pregnant. It is very interesting, as a Canadian, to watch this discussion. Our American neighbours have, for years, pointed to us saying that our socialist and communist streak was exactly what they objected to and rejected. Government intervention was seen as a slow communist approach to government and we were the classic examples of creeping socislism. Now, with Wall St, Main St. and Motor City about to tank, the model is looking appealing and even defendable. What a difference 2 months make.
Is the American Way about to change? Are Americans about to accept that, in some instances, government intervention is necessary? If so, will it impose conditions? If so, will it demand results based on government expectations? If so, how different will it really be to what Canadians have recognized as the sometimes necessary evil of managing a country for the welfare of all its citizens, not just the wealthy or connected few?
I watch with great interest from the Great White North.

Totally agree with Mr. Silverman. We compete in a Global enonomy. Our global competitor countries would immediatly provide the needed assistance to their auto industries. No debate! Many entire American industries have been lost to competitor nations due the "export" assistance they receive(d) from their governments. We turn a blind eye to our small and medium sized business needs and site the same old sick platitudes while more and more of our productive capabilities get transferred overseas. It's sad to say but it will probably require a major US economic depression before we see the light!

I particularly think US goverment has taken this step to protect its own image in the world market. One after other, major corporations are spiralling down. If the major corporations go bankrupt, the confidence of world and even americans will go for a toss.So the question arises is that should US go with its capitalist principles or build confindence in the community?

THIS is so crazy! Since the oil companies have been giving them all LOTS of money to constantly stamp out gas guzzling engines year after year, let them bail out the car companies since one hand washes the other with them! LOOK around you !! Laptops that get 10 hour battery life! THE iphone itself! Yet the car companies refuse to build me my electic car! Dont believe the hype! GM does not even have a prototype of the Volt! Just a shell! They have no plans on having an electric car in the next 15 years, they are so stuborn!

We have to look at the purpose of government. The purpose of our government is not to provide financial support to select businesses or industries. The bailout plan for the financial industry was a mistake, and providing funding for the auto industry would be an even greater mistake. When I look at small business owners who have had businesses that were stuggling, I did not see the government running to their aid.

Myles Munroe once said "If you don't know the purpose of a thing, you will abuse it." This is what is happening with our government today.

I'm not an economic guru, nor a business man that has lost billions of dollars, what I am is an American, and the big three are about as American as you can get, while they are guilty of some bad management, and business practices in the past, the blame doesn't lay all on them.

You people seem to be forgetting the UAW, and it's money sucking ways of putting the big three in the hole, they extort billions of dollars per year from these companies, and nobody seems to even want to touch on that.

GM's new vice persident, Lutz, and chairman of the board Waggoner, are two very brilliant guys, who should be given a chance to show what they are capable of, look to the future, and just think, GM employs what the economists estimate to be 900,000 people.

If you count the ad agencies, legal firms, tool and die factories, and parts manufactures that are commissioned by them only to do their work, think about all those people all at once being out of work, and it makes no sense even from the capitalist way of seeing things.

To tell these companies to just close their doors, or to file a chapter 11, which would downgrade their stocks even more isn't really a great option either, the idea here is to help them, and get them back to normal, and you don't do this by tell them that they can't build American cars any more.

Do the Japanese build a truck that is even half capable of pulling a load, or hauling a big load, do they build a truck that is anything like we do, and no the Tundra is nothing like a Chevy, Ford or Dodge.

If you can't see helping them just because your an American, and their an American car company, them it's possible that you need to rethink you Americanism also, they need help,and they should get it, just the same as the crooks on wall street did.

David C. Atkin

Bad decisions must be punished, not rewarded. If economy was in better shape the Big three CEOs would get a big kick in their behinds, back to their private jets and back to work, until they can get it right or get out of car making business.
Unfortunately with this economy, we could not swallow a loss of that sort, and something like GM would need to be kept afloat until after the revival.

The big three should be kept afloat as you say, and they should not be punished for building American cars, I realize that they made an error in judgement when they took the corporate jets to Washington.

But just sit back and think about it, the government already bailed out wall street, and promptly AIG went on a hunting trip for $300,000, then to the spa for the same amount again, not to mention the bonuses, and I guess all that is just fine huh.

What you and nobody else seems to realize is this one small thing, there are colleges that exist, just to train GM tachs, and sales people, not to mention all the things that they do for the communities that thet're in.

Like in the city that I live in, everybody knows one of the local Chevy dealers, who is constantly putting money in to the community, for hell sakes he built a community collage for our city.

I know you might be thinking that I live in some podunk back woods town, it happens to be a mid sized city, you know, the size that is seen most in this country.

Any way this particular dealer, as done so much for our city, that the people here have come to know him, and love him, and I could bank on the fact that he is not the only one.

This is American, and we need the big three, and no I don't live in Detroit, I in the west part of our country, I love the big three, I grew up with them, and I can't imagine an America with out them in it.

Moreover we don't all need to be forced to drive Japanese, or German cars, and the big three don't need to be forced to build them either, just spend a little time and think about what your saying when you say that they should go out of business.

When I was a kid, interested in science and reading Scientific American, I would see those ads from the research arm of GM about how innovative they were, bringing new ideas to market all the time. I bought GM and Ford cars many times, but I didn't see a lot of innovation from year to year. Then I bought my first Prius in 2001. Toyota has most of the good patents on the technology needed to create such a car, with 50 mpg and you don't have to plug it in. Toyota took their time developing and refining this design and letting the market grow organically, with practically no advertising, for several years.

Ford was humble enough to license Toyota's hybrid patents to put in the Escape. But GM has offered us the "Volt", a glorified golf cart that you have to plug in, which means it just shifts the power plant elsewhere.

After watching GM all these years I am convined that they always used the research department for marketing. GM has always been tone deaf to the demand for efficient vehicles. As they are now -- the Volt's only real purpose is to allow GM to reduce its CAFE level to meet the new legal requirement, and to make an appearance of being innovative. But I think they are stuck without the patents to make reliable efficient cars (they do have hybrid buses).

I have ample sympathy for GM's workforce; they are not the cause of the problem. I think the best thing for the country and for the GM workforce would be for GM to sell out to Toyota or Honda so that the great patents and innovative practices of these companies can be used to make efficient cars using our great American workforce.

where was government when Gm repossessed my truck. I lost my job due to that repo and im still trying to recover. I guess i should have used my private jet then asked for the us to pay my bill

With GM possibly going out of business, it's time for all camaro lovers to be contacting the politicians in their respective states, contact you senator, your governor, and your representatives, make sure that they understand what a bad thing it is for the big three to go out of business.

If you don't care about the big three, maybe you never really never loved the camaro either, because if there is no big three, there is no camaro, and it's up to us to see that it doesn't happen, it's up to us to make sure that they get what they need to stay in business.

It's time to speak out, we cannot let the government turn down the big three, they can help all these banks, and insurance companies, but not a true American institution known as the big three, yeah you may have to eat some higher taxes for a while, but it's worth it.

Save the big three, and you save the country, you show people that America still matters, and you show them that the big three are a needed part of our country, I love the big three, just like i love baseball, hot dogs, and apple pie, I love everything American, and it doesn't get more American then the big three.

You may be one of those people who just doesn't understand why the big three should be helped out here, have you even stopped to look at this, in your community I'll bet theirs a car dealer that does a lot of things to help your area, I know their is in the city that I live in.

This dealership builds collages, he supports our education system, he builds parks, and a whole lot more things that I won't name here, if the big three go out of business, there goes all of that, this dealership does a lot to support our community, and our state.

I know, I hear what your about to say, he does it for tax benefits, and you may be right, but that doesn't make it help the community any less, that doesn't mean that these things that he does to help our community would even be here without him, yeah he likes to capitalize, but that's the American way.

What's wrong with doing things the American way, I ask you what's wrong with being an American, as I have said earlier, there is nothing more American the Ford, GM, and Chrysler, or do you like the idea of only having Japanese, and German cars sold in the United States, gee what a choice.

Yeah over the years the big three have made a few mistakes, look at it this way, if you made a mistake, and it was held against you for the next twenty, or thirty years, wouldn't you like to be forgiven for it, that is what's happened with the big three.

You'd expect for whoever to forgive you for your mistakes, and in a lot less time then thirty years, so why should it be different for them, yeah back in the 1980's, and 1990's they had some quality issues with their cars, it's time to let it go people.

That would be absolutely ridiculous, these are American companies, and they should stay that way, or close their doors, if that's the only choice that they have.

They don't need to be selling anything to Toyota, being as how GM sold more cars last month then Toyota did, and the idea of selling to Honda is even more idiotic then selling to Toyota.

How would either of those two options help our country, they would be better to close their doors, then do that, it does not help our country at all to send more of our money to Japan, Germany, or any other country, it's a idiot statement at best.

And for the person who lost his truck, it's possible that you should have made you payments, and if it was repoed after that, you could whine about it.

GM does just fine on the economy standards, they have 7 or more cars that get 30 or more miles to the gallon, and 4 more that get 24 or higher, do some research before you whine about economy standards,

It's not enough that these companies do everything that is asked of them, but they can't even be forgiven for old mistakes, Lutz is a brilliant man, and he will make GM the General again.

It would seem that the automotive industry in this country can do no right, after doing nothing but right for the last seventy years or so, now they have to compete against their own American customers, and the Japanese to sell a car, it gisgusting.

Along the way somewhere Americans have lost the patriotism, their very Americanism, when I hear idiot statements like they should sell GM to Japanese, it makes me want to puke, I shouldn't even have to breathe the same air as such a fool does.

The big three have learned and forgotten in two years, then what it has taken most people, and the government an entire lifetime to learn about cars, people still want American cars, I for one will never buy a new car again if the big three are forced to close their doors.

I refuse to own a Japanese car, or a German car, and you'd better believe that I'm not the only one, I will always be an American, and it's fine to build a fuel efficient car, or even an electric car, but I should not be forced in to buying a car that I don't want, just because this country listens to hippies more then real American auto buyers.

I grew up on American cars, and I will die on American cars, and trucks, give me the big three, or give me death.

Well I have read all the comments made by everyone and I get a feeling of patriotism from some and some are the 100% capitalist type.

I am an average Indian living in India and I have been a regular business visitor to US and I am great fan of Ford and GM cars.

I know people in US like big cars, trucks etc and what all the three companies were building cars for so many years were for the people who wanted them. Yes Honda, Toyota are selling well and they also have a market in US. It’s a choice which people make as to saving on miles per gallon or you want space, load etc. Toyota’s, Honda's and other German car makers did come with products that is liked and accepted in US markets as well. They did their homework and no matter how many civics or accords were sold but they also did start making big cars that US people really like. Coming to GM and Fords of the world what they never did correctly is even if they were loosing business in developed economies and business was becoming tough for them in US and other countries. Even in developing coutries like India they came out with cars that were never accepted by the customers in India. Again here Japenese car makers, Korean were able to understand the market well and are doing much better than GM & Ford.

I think it is a case of poor management and decision making that had lead to the downfall of these giant car makers. I am car lover and always develop strategies around what one should be selling in the markets you are. And I see both Ford and GM come out with cars at the price and performance that will never appeal to an average Indian and as people in US are loosing trust in there products people in India never developed it.

Its a season of bail out by US government and I think all corp. want their share in it. This will help loss making giants to cover up on their poor decision making for so many years. Not investing money in proper market research, product development for the future, research.

I think to save the huge number of people involved in these companies and companies linked to them government should bail them and it should not be perceived as socialist measure. As someone said we need to be pragmatic and these are extreme circumstances and everyone in this world would be doing their bit to help the economic crisis. Only thing which in my opinion the government just not do is buy shares and bail them out but take hard steps like:

1. Change the management and get new heads on board. May be hire people who are running Toyata's or Honda of this world or someone who is not from the industry and who brings in fresh perspective. Corp America is all about networks and relationships of tops school may be government should appoint a person heading these companies who does not come with tags.

2. Expenses should be closely monitored and they should see where they can save money by outsourcing, moving to cheaper locations within US or anywhere in the world. Why I say because even for a request to bail out the CEO of these companies were travelling in private jets. All these management people new for all these years that they suffering huge losses and they should have been leading from the front and managed all these expenses. I still feel taking a look at all their management processes one can really pull them out of the rut.

3. My advice to these companies if anyone of their Sr. Managers is reading this. In a country like India you will never be able to sell cars like Ford Fusion, Chevy SRV. If you apply the simple principle of Blue Ocean Strategy and what I am giving you is a billion dollar advice normally you will hire some top shots who should be doing this for you "their is no car for youth in this country" read my words no car for young generation a good reasonably priced sports car. A stripped down version of a Ford Mushtang will really do well in India. Pricing needs to be correct but that will sell like hot cake.

Thanks

Amit Goswami

Any federal money has to be conditional, or it will almost certainly be wasted. Pumping money into failing enterprises without demanding improvement and accountability will only delay the inevitable.

Mitt Romney wrote an interesting op-ed piece recently against auto industry bailouts. He said, and I wholeheartedly agree, that this is about labor costs. CEO's who beg at the Capitol and then hop in their corporate jets are bad form and give us pause about these peoples' judgment.

Nevertheless, the amount of money wasted on executive compensation and perks pales in comparison with current labor costs and pension costs. Romney, son of George Romney who was AMC's CEO way back when, stated that these costs put US automakers in a $2000 hole, on a per-car basis, relative to their foreign counterparts. Assuming this figure is true, selling the consumer to either pay $2000 more for the same thing, or to get an inferior car to the tune of $2000 in missing features, is impossible over the long run.

It would appear to me that the US automakers' (especially GM) only choice is to shed its labor contracts and negotiate something more closely aligned with what foreign manufacturers who have plants in the US are paying. If they need to go to the bankruptcy court for the leverage to do this, so be it. I think the taxpayers support saving the companies and saving the jobs - but not by way of paying far more than market wages and benefits. Even the Democratic leaders in Congress, who seemed all too willing and eager to write a blank check, figured out very quickly that the winds do not blow favorably on that methodology, and instead are rightly demanding some sort of plan which demonstrates that the money will not be used on "business as usual" strategies.

My final thought is that after labor costs are addressed, the product line of each of the Big 3, especially GM, needs to be scaled back to models that are true winners and emphasize the core competencies of these companies. For GM, that means Chevrolet and GMC trucks, a handful of coupes and sedans across the product line, and the Cadillac nameplate should survive. Ford should take a long hard look at Mercury (or maybe, more correctly, a short, swift look). Chrysler should emphasize trucks and sports cars, sprinkling in one luxury and one van offering. My opinion is that the extra, poor selling products do not do much to enhance market share, and instead draw scarce resources to them for no good reason.

Lawmakers on Friday turned their attention to passing a bailout package for ailing US automakers as a disastrous unemployment report graphically reminded them what's at stake if the Detroit Three were allowed ...
All had the ups and downs and many survived and many were washed away. Before the word these we use, “Bail out” not understood by me here, I guess meaning injecting more money free or not, let us look at the way these auto corporation used the cash. If they used this in a meaningful manner they would have not had these cash strapped days. The demand and supply goes hand in hand and there had never been any changing these cannons of the economic laws. What has gone wrong is all Americana thought that they were big in every manner and that the huge size would never make that pea sized one day. Well. It has come to pass now why scream for bailouts?
I thank you.
Firozali A. Mulla

The companies that pioneered the hybrid are thriving. GM could have done the same thing yet the chose not to. "Who killed the electric car?" sound familiar? GM could have sold their technology and been in the black long ago.

GM has been operating in the red for nearly a decade. We should not reward piss poor performance with the money taxpayers. GM needs to change things and has needed to for some time.

I have worked for GM since 1959 to 1979, in its Overseas Division in Argentina (I am Argentine), and since February 1974 to December 1978 as Chief Engineer, leading 252 persons. GM Argentina ended its operations early 1979. GMA was closed without any solid reason but just mismanagement. Persons that were promoted just because they followed "the book".

In my opinion, current GM situation is not casual but causal, and not new, since started back in 1977, when many brilliant members of its Staff, in the US, were given early retirement and replaced by personnel which didn't have the experience and knowledge that it was required to manage the N° 1 firm in the world. It is not casual that from N° 1 GM passed to N° 25, and now by its present situation.

Top Management disregarded market needs as far al fuel efficiency, emissions, vehicles sizes, and quality (see recent Mr. Wagoner comments in this regard) departing from fundamental principles that make her big. What is worst is that the technology to produce them was available at the Technical Center or at Adam Opel AG in Germany. Back in 1977, GM was selling for US$ 200 billions per year, and 4.5 % of that went to Research and Development...

If we read what Mr. R.C. Gerstenberg, Chairman, wrote as "Basic Principles", we can clearly see that they all were ignored completely. One of which sais:

"MAINTAIN OUR REPUTATION FOR INTEGRITY:
To continue to be known not only for top quality products but also for reliability and integrigrity in our dealings. We must fulfill our obligations as a good citizen on the plant community and throughout the nation."

I cannot say what is right or best, if leave her to fall, or provide a livesaver. What I do know is that, with the lifesaver, management continues present trend, they will helpless sink. Please, don't argue with current economical situation because your problems were much early than this. If you do argue, you are just insulting our intelligence.

E. J. Wessel
Mechanical Engineer
BS, ME, GMI, Flint, Michigan (2 years scholarship - Diploma)
Key Award for Outstanding Achievements (GMC-GMI, 1973)

Everyone talks about the government saving GM. We are a free market society and this is a no brainer. The government should not give GM or any corporation a dime. The corporations for years have known that their cars and trucks were inefficient on gas and maintenance. The Big 3 could have changed their business model years ago, instead of bringing out a Hummer and a new Mustang.

The truth is the Big 3 have been failing for years now. They pay janitors 65,000 a year to empty trash. (Shown on 60 minutes a couple years ago) The government has no right to step in and help GM.

The overall problem America has is that we let all of our jobs go over seas. We have no manufacturing left in America, so now that our economy is suffering there is no way to bring it back. If America had never signed the NAFTA and kept the tariffs on foreign goods, Americans wouldn't have to buy everything from China because we don't make it. America can provide for it's self and we should, by keeping jobs here so that money spent in our stores stays in our country.

When the economy goes south what jobs go first? Tech jobs go first because they are high payed and tech support can be done in India for a third of of the cost.

Wake up America and by American

Dear Professor,

First of all I respect your education and humility and your ability to look at your mistakes of the past so objectively. But frankly I don't see GM and Ford being able to compete with toyota with the extra manufacturing capacity, labor unions, and without a change in management. It just doesn't make sense. What I am hoping is that the government will force this change on general motors, ford, and chrysler...the easiest way to do this is by allowing these companies to go bankrupt. Under chapter 11 creditors will force these companies to take a leaner and meaner approach to doing business...eventually they can emerge lean, mean, titans of industry once again and regain there former greatness. Right now we are helping them to live but not treating their ailments...this is a very cruel punishment.

Sincerely,

Amit Maheshwari

What about the person whose cat gets mauled by the dog you saved the very next day?

What about the people who have to deal with broken down cars continually because American car companies literally can't make a good car to save their lives?

When you subsidize garbage products, you're just hurting the people who buy those products. The playing field needs to be level so companies like Toyota and Honda, which know how to do things right, can come in and provide consumers with a better product.

Sure, thousands of people will lose their jobs, but MILLIONS of people will end up with higher quality cars.