The Bailey Blog

When it comes to government, I have long been a proponent of compromise, and of course, so were the founding fathers of the USA.  Compromise allows us to combine the best of both sides to come up with the best ideas. 

That is why I congratulate Governor Granholm, on her new reform proposal presented last week at the Rotary Club of Lansing.  The Governor rolled out changes to public employee retirement plans and benefits in an effort to save money in the 2010-11 budget.  According to MIRS Newsletter, the governor’s proposal totals $450 million in reforms and savings. 

Some of these things have been talked about before, some are Republican ideas and some are Democratic ideas. 

But we all know, often through our own sacrifice that every budget in Michigan needs to be reevaluated to determine what is best for the residents of Michigan and what is economical for our times.  Michigan must reinvent itself and unfortunately, retirement plans, benefits and even salaries must be looked at.  Our own future depends on these steps. 

So, congratulations to Governor Granholm just as she prepares her last State of the State Address.  Now, let’s compromise and come up with the best plan of action for 2010. 

Once again public relations is playing a major role in a company’s efforts to ease it’s customer’s fears.  Toyota executives have taken to the road and will continue in the coming weeks and months to tell all their customers that they are responsible and will correct the problems with their products.   

In an advertisement in more than 20 major U.S. newspapers Sunday Toyota said: ”We believe we are close to announcing an effective remedy,”  said Akio Toyoda, president of the company, based in Toyota City, Japan.

“I am deeply sorry that we’re giving cause for concern to customers,” Toyoda said in an interview Friday with Japan’s NHK television network in Davos, Switzerland. The interview was posted to the ABC News’ Web site as well.

The folks at Toyota and its suppliers are human just like the folks at all manufacturing companies.  Mistakes are made.  But, it is what is done following these mistakes that builds or maintains reputations.  

You may recall the Johnson & Johnson pharmacy company Tylenol recall of the 1980s to address tampering issues.  The J&J product in question then was their  No. 1 seller.   The company invented another form of that product and reintroduced it to the market.  That product became No. 1 again and remains No. 1 today. 

J&J communicated its messages through sound public relations practices.  I believe Toyota will correct the situation that exists and will regain its very positive reputation.  Toyota’s public relations approach will play a very important role.   

The events that unfolded in Haiti surrounding the earthquakes has been horrific.  Everyone is so sad by what has happened in Haiti and to the Haitian people.  I noticed a recent headline that screamed: What is the future for Haiti and its people? 

This made me think and I believe the number one priority is to save the people and nurse them back to health. 

After that, so much needs to be done from clean-up, to reconstruction, to educating the children, to reestablishing an economy…that it is hard to determine long-term priorities.  My thought is - and I am sure others have thought of this already - let’s enlist the Peace Corps to make Haiti its next major project.  Young Americans, who are finding it difficult to find a job, can be stationed in Haiti for a year or two either right out of college or even before they graduate to begin the process of helping Haitians with the long process of reinventing their country in every way.  It will take years but, it would be worth it. 

Not only would this be a huge help to the Haitian community but, maybe the world would see that we - Americans - are helping these people and maybe they’d appreciate our efforts.  So, doing what is right, could lead to enhancing the image of Americans around the world. 

In addition, our young adults would get some fabulous experience and a great start to their lives by doing so much good. 

Earlier this week, the Detroit Regional Chamber announced a new President and CEO.  Sandy K. Baruah takes over for Richard Blouse in mid March.  Sandy is smart, has outstanding experience and brings lots of connections and ideas from Washington DC where he has worked for several years.  More on Sandy later. 

As for Richard Blouse, I’d like to send my Congratulations.  He has provided outstanding leadership to the DRC for over 15 years.  Under his leadership the Chamber has made a significant contribution to SE Michigan and the entire state.  The Mackinac Policy Conference has blossomed into probably the most significant government/ business/community conference in the United States and its reputation is well known nation-wide.  He leaves at a difficult time, but he leaves a very strong staff and board of directors behind.  He will be greatly missed, but the organization he built will continue to thrive because of what he has done. 

Dick will continue with the DRC during the transition and says he will be “around the community” after he leaves the DRC June 30.  I sure hope so.  But, I know his home in North Carolina is also calling. 

Thanks again Dick for everything you’ve done.  Best wishes and congratulations on a job well done!  Don’t forget to leave us your cell phone number!  

Crain’s Detroit Business recently named their 10 finalists for the “2009 Newsmaker of the Year.”  In my mind, there were no surprises on the list because the 10 finalists are, and have been, great leaders and all deserve to be where they are for the hard work and commitment they have for our community.   

The nominees were:   

• Paul Anger, Editor and Publisher Detroit Free Press
• Dave Bing, Mayor, City of Detroit
• Robert Bobb, Emergency Financial Manager, Detroit Public Schools
• David Brandon, formerly CEO of Domino’s Pizza, now Athletic Director for the University of Michigan
• Beth Chappell, CEO Detroit Economic Club
• Randal Charlton, Executive Director, TechTown Detroit
• Richard Dugas Jr., CEO, Pulte Homes, Inc.
• David Egner, President, Hudson Webber Foundation; Executive Director, New Economy Initiative, Detroit
• Mike Ilitch, Owner, Detroit Tigers, Co-owner, Detroit Red Wings, founder Little Caesar Enterprises Inc.
• Chris Rizik, CEO and fund manager, Renaissance Venture Capital Fund

And the votes are in…Mayor Dave Bing and Robert Bobb were selected as co-newsmakers of the year.  This is the first time two people have received this award in the same year.  

So, I’d like to send a note to Mary Kramer, publisher of Crain’s Detroit Business. 

Mary:  Thanks for selecting both these great leaders.  I don’t know how you could have selected “one newsmaker of the year” for our community.  All 10 of these individuals deserved the recognition and we all need to thank them for their commitment and hard work.  Our region will survive and will thrive again because of the efforts of these folks and others like them.  If I had a vote, I’d have settled on a ten-way tie.   

Thanks to all the nominees and special thanks and congratulations to Mayor Bing and Robert Bobb.   

As we near the end of press preview week at the 2010 auto show, there has been lots of discussion about what the future may hold for the industry. There are many predictions about production and retails totals, as well as to the future of electric vehicles, all indicating 2010 will likely be a better year. Here are three things I think are important to follow until the next auto show:

There will be electric winners and electric losers.  Nearly every automotive manufacturer proudly displayed either plans to create an electric vehicle or discuss their immediate plans to have them land in the showroom. Undoubtedly, some will win, and some will lose. Good marketing, public relations and positioning the vehicles correctly will be essential for these vehicles to go into the mainstream.

The top automaker will be the one that can build the vehicle most reflective of Americans’ lifestyles.  After the auto show, it seems as though Ford is in the lead as the top carmaker. The fact is, however, many carmakers including GM are positioning themselves to become the producer of the best vehicles.  And Chrysler and others will have something to say in the near future as well. 

Most importantly, the automotive industry isn’t going anywhere. This week has shown diverse technologies with seemingly unlimited potential as to what the future may hold. Cars are an important part of all American’s daily routines, and as our routines become leaner and greener, our cars must do the same.

What do you think are some automotive trends to look out for in the next year? Is there anything we should pay particular attention to?   Let me know. 

“What a difference a year can make.”

Doug Fox, Senior Chair of the North American International Auto Show, spoke those words this morning to kick off the much anticipated 2010 show. After a rocky 2009, where two of the world’s largest automakers filed for bankruptcy and many more faced slumping sales, there is a completely different attitude surrounding the 2010 show. And for the first time in a very long time, there is a lot to be excited about.

The day’s upbeat mood was set when Secretary of Transportation Ray LaHood stated this morning, “Today is a new beginning for the auto industry.” After pledging support for an industry he believes serves as a pillar for the American economy, the day began and a new direction in the auto industry became clear throughout the day.

To sum up, nearly every press conference during the first day of press preview is simple: each automaker described a strong sense of optimism and a solid plan to move toward a sustainable future. With many new launches of hybrid and fully electric vehicles, it was clear the industry is setting goals to become cleaner and greener. The NAIAS is highlighting these new technologies through the MEDC-sponsored EcoXperience, which visitors can ride in a hybrid or electric vehicle in a track surrounded by plants. Additionally, Electric Avenue highlights such electric automakers as BYD and the technology that goes into creating these vehicles.

The auto industry, much like so many other industries impacted by the recession, has emerged with a new face. Detroit, as well as the entire industry, has a lot to be optimistic about.