“It was all about the unions. The unions didn’t want to have their very generous contracts renegotiated so we put $80 billion into both General Motors and Chrysler, and anybody believes that Chrysler is going to survive, I’d like to meet them.”

So goes Senator John McCain.

The Arizona senator spoke to The Detroit News while attending a Phoenix racing event.  McCain’s grim prediction comes amid the continually declining state of the Chrysler brand and dismal words for CEO Sergio Marchionne’s business plan.

McCain went on: “We see the automotive industry, and my heart goes out to the citizens of Detroit, really in the tank, and yet we have manufacturing plants all over the South, which are not bound by some of the labor rules and contracts that make them non-competitive.”

Image courtesy of Caricature Shack.

Automobile magazine has proclaimed Ford’s head-honcho as its 2010 “Man of the Year.”  In a piece written by Joe DeMatio, it was noted:

Mulally is living proof that a single, extraordinary leader with vision and determination really can make all the difference in an organization. In 2006, when Bill Ford, Jr., went shopping for someone to take over the role of Ford CEO, he was looking for not just a talented executive but for someone who had demonstrated the ability to reinvent and reimagine an entire corporate culture. Candidates were thin on the ground, but Mr. Ford found his man, the father of the Boeing 777 airliner, in the number-two chair at the aircraft manufacturer. Industry observers were shocked: never had someone with absolutely no car experience been appointed to such a high position.

But the gamble worked.  Mulally trimmed Ford’s overstretched empire by selling off the Land Rover, Jaguar, and Aston-Martin properties.  (Volvo is said to be set for a sale next year.)  This allowed the company to concentrate its manpower and materials on restoring the Ford and Lincoln brands.  Under his tenure, Ford has reduced its losses, excelled in industry safety, and been honored for its product reliability.

The vehicles themselves have made the jump nicely.  The Taurus is once again a respected sedan, the Fusion has shaken up the mid-size segment, and the EcoBoost engine has blended V-8 power with I-4 fuel economy.  The popular Euro Fiesta and Focus are also making their way to North American shores, likely to take back the compact category from Honda and Toyota.

Mulally’s refusal to take a federal bailout was seen as arrogant.  But he’s been able to live up to his modest defiance by gradually transforming Ford into a proud and effective American corporation.  Chrysler, anyone?