"My biggest concern, which applies equally to Ontario as well as to Michigan and the industrial Midwest, is that the bottom line for auto and steel makers in particular is that I don't think the corporate leadership has convincingly accessed their long-run future 10 to 15 years up the road," Whitty said. "And, the labor unions have not been able to figure it out either except to dig in and try to hold onto everything they fought for and gained over a generation.
"This is a very normal and human reaction to try to 'hold onto the farm.' The unions don't think they should be taking the people's dues and then have the members pony up for medical expenses and fund their own retirement and such."
Yet, without any visionary, futuristic thinking, the UAW and the management of one or more of the Big Three could be presiding over a Kmart-like disillusionment over the next decade to 15-year period, he said.
"I expect GM and Ford will to survive as partners with other companies, but they will have a significantly reduced investment in Michigan and a sharp drop in employment levels -- hourly people in particular -- than other areas of the country," Whitty said. "The question is, how much shrinkage and how fast? Are there any solutions available that haven't been tried? I hope so."
Could Marketing Save GM, Ford and Chrysler?
While the Big Three haven't perfectly caught up in terms of quality and performance with the Japanese, they might want to change their marketing strategies to appeal to younger buyers to buy products of unionized companies, Whitty said.
The UAW tried this strategy with its own members nearly two years ago, but it failed. Yet, it is up to the marketing vice presidents at GM, Ford and DaimlerChrysler to take heed.