Honda Acts Responsibly

During the last couple of months we have been treated to The Car Show. It's the on-gong drama coming from the top management at The Big Three who first traveled in private jets to go to Washington to traveling in hybrid vehicles to asking for money again and again. And, what we have seen is people acting irresponsibly over and over.

Rick Wagoner, who agreed to work for $1.00 per year, was forced out of GM . Of course, he is leaving with a nice retirement package that some value as high at $23 million. So, he's not driving off to the poor house in an old Chevy. Wagoner is being replaced by Fritz Henderson, who will not work for $1.00 a year.

Yes, the $1.00 is really symbolic. But, compare it to what Honda is doing. (This is where the blog title comes from, by the way.)

Honda is stopping production at North American factories for 13 days to reduce inventory. That was Step One. Step Two is they are reducing salaries for what seems to be all management positions with the President of Honda North America taking the biggest hit. Honda is also offering buy-outs to employees.

Who isn't being effected by reduced wages? The frontline factory workers. The people least able, and who actually build the cars, are not being effected - except for the 13 days of plant closing.

Nobody had to tell Honda to do this - they just took action. They are acting responsibly and fairly. What a change! Don't they know they are in the car business? Don't they understand that there are entitlements for management? I guess not. They are doing what they need to do to stay competitive.

Hooray for Honda.

I am sure I will have more on this topic later.