Informative Speech Essay - 550 Words

Informative Speech (Essay Sample) Content: Informative SpeechName of StudentInstitution of AffiliationSubmission Date Informative SpeechSenior dignitaries, distinguished guests and everyone at large I salute you. I cordially welcome everyone at this forum and appreciate everyone for your positive gesture to attend. We gather here today to evaluate the $17.4 billion lifeline extended to the Big Three United States automakers, Ford, GM, and Chrysler. I shall give attention to the danger that global economic recession posses on the auto industry with the aim of projecting its future viability. I shall look at the three key areas concerning this industry. The topics include the companies past performance, reason for the lifetime and finally the future viability of these companies (Press, 2008). It is common wisdom that the auto companies of United States have made a tremendous contribution to the growth of economy in varied ways. The auto industry has provided several employment opportunities to the citizens enabl ing them earn a living. It is on record that the auto industry and especially Ford, GM and Chrysler make outstanding models of cars that compete favourably in the global market (Press, 2008). By doing so, they keep the name of U.S. on the global map of marketing. We are aware of the current global financial crisis and the economic recession affecting virtually all countries. The US has not been an exception to these challenges. This brings a number of challenges to various sectors of the economy. This affects the auto industry too. From the recent past, the auto industry faces a number of challenges such as inflated costs, a shrinking market share, out of date policies among other severe challenges. It is crystal clear that the purchasing power has reduced significantly as a result of increasingly hard economic environment. This has seen GMs sales in the U.S. market drop 41 percent in November and further down 22 percent so far this year. Chrysler sales, on the other hand, dropped 2 8 percent (Riechman, 2008).Everyone has observed the GM CEO Rick Wagoner face sharp criticism on account of his management of the nations largest auto company under this crisis. If not addressed, the challenges could cripple the operations of the auto industry. In the midst of these financial crises and recession, allowing the US auto industry to collapse is not a wise course of action (NBCNews, 2008). It is in this view that President George W. Bush outlined a plan that will bail the auto industry out of this crisis, and grant them more time to survive. The plan entails of $17.4 billion package from the federal rescue government.In the plan, the president gives a three-month period to the auto companies to come up with restructuring plans to make them viable in the market. Barrack Obama, on the other hand, issued a warning to the auto industry reminding them that the peoples patience was running out on them (NBCNews.com, 2008). While announcing the plan, Bush said the auto companie s workers need to agree to wage and work rules that are competitive with foreign automakers by the end of next year (Riechman, 2008). Another reason behind the governments intervention of the lifeline was that the auto industry risked falling into bankruptcy and liquidation if free market prevailed. This, no doubt, collapses these companies and by so doing, thousands of people lose their jobs. This would make it even trickier for the government in this financial crisis moments. The carmakers have already announced extended holiday shutdowns because of slumping sales already sounding the alarm for intervention (Riechman, 2008). Fellow countrymen, President Bush also described the auto industry in the United States of America as highly integrated such that the collapse of one company threatens other companies as a result of the ripple effect caused follow suit (Press, 2008). This leads to mass unemployment of which the government is fighting.For future viability, it is, therefore, nec essary to structure a master plan that benefits and salvages all the three companies. Managers of the various companies received this move happily. Bob Nardelli, the Chrysler CEO, thanked the administration for its help while Ford President and CEO Allan Mulally said the aid would help stabilize the industry. Common knowledge says it is now the responsibility of the CEOs to ensure that this grant helps them resurge back to the market. The future viability of companies can be seen to rest in the hands of the managers. A number of things need be done to achieve this.To begin with, the government proposed the policy to eliminate the job bank program. This program sees lay off workers get unemployment benefits for 48 weeks. If they remain laid off, they move to a jobs bank that sees the company meeting about 95% of their pay and benefits. This policy shall help the companies cut down the labour costs and expenses in general hence propelling them to greater achievements (Press, 2008).T his policy helps the companies remain viable in the market in the future (Riechman, 2008...