We all know that GM needs to keep Wall Street happy with announcements of some executive reshuffling, inventory reductions and some public statements about "getting hard" on its dealers in a quest to reduce costs and consolidate the bloated dealer network. While GM tries to tell the fat suits on Wall Street that it is doing well in some individual segments in the market, and while GM crows about a few initial quality survey wins, the ship is still sinking.

The UAW blew it when it refused to negotiate a fairer contract with GM. GM's suppliers lost when GM insisted on another round of impossible cost costs. GM keeps insisting that its product is great when the market tell it otherwise (particularly here in LA). No matter how much GM polishes its turds for PR purposes, it's not going to change the problem that the products are still turds.

The same scenario is playing out at Ford, but at a slower pace. When the Five Hundred came out, Ford predicted "record" sales of 100,000 units -- a very low bar to drive over. It appears that with the bar that low, the Five Hundred will make that goal. But Ford is completely dependent on big truck sales to make a profit. With some slick accounting tricks, Ford might even say that the Five Hundred, Freestyle, Montego, etc. are profitable, but I doubt it. I think the Mustang is probably the only passenger car that has enough volume to eek out a profit. Ford sold a huge percentage of its Mustang production to the rental fleets. The new Mustang is everywhere these days; but the V6 sits in rental fleets and dealer lots while the public clamors for the GT with a V8.

Ford soldiers on producing one bland product after another. Is there a hope that customers are going to some day, wake up and say "I really love the look of that bland product"? No. The pictures of the new, slightly warmed over Explorer won't make any pulses race either.

And this is at a time when the market trend (started in LA) is toward smaller SUVs, crossover cars/trucks, hybrids and better gas mileage. Toyota just announced that it would start building hybrid drivetrains at its huge Kentucky plant -- for the pocket change investment of $10 million. Those hybrid drivetrains will be stuck in everything Camry and Camry-variant built there (Highlander, Sienna, Solara, Avalon, etc.).

So why don't the American auto execs get it? Since I read the trades, I get to see pictures of the big executives. The top brass all seem to be old, fat very white men who came up through the ranks and now sit in a big chair in a big office and have never touched a computer because their secretary still takes dictation and makes his appointments.

Over the past week, there has been much attention focused on Los Angeles because Antonio Villaraigosa was elected mayor. There was much talk about his ethnic background and posits as to whether or not he would represent all racial/ethnic backgrounds in a city as diverse as Los Angeles. I guess the press was hoping for an all out war between African Americans and Latinos. Of course it didn't happen. Frankly, I never gave his ethnic origins a second thought. Much of the media attention seemed to focus on his Hispanic origins rather than his policies. Somehow, his win was drawn to be some major political and racial event and that somehow other groups should worry that somehow Mexico was going to take over political power in the US. Place that thought in the "not gonna happen" category.

I guess outsiders just don't understand Los Angeles. He wasn't elected because he's Hispanic. Mr. Villaraigosa was a much better alternative to the outgoing mayor. It's really that easy.

When I look at the good old white boys at the helm of the sinking ships in Michigan, I get the same feeling: They just don't get it. Not all customers look like them. Not all customers want the junk pushed out the factory doors of Ford, GM or Chrysler. I look around me in town and the vast majority of the poorer immigrants drive old Japanese cars, primarily Honda, Toyota and Nissan. Do these immigrants know something the Michigan Three don't?

Unfortunately, the answer is yes. Even if they have to buy an old dilapidated car as a means of working and providing for their families, they know not to get an American car. . Someone told them that they will get better fuel economy and better reliability out of a beat up Honda than they will get out of the same model year beat up Chevy Cavalier.

These huge corporations move at a glacial pace unless prodded. The good old boys club is still not happy with the entrance of minorities and women into the executive ranks. In a sense, top management looks like they are still stuck living in 1970, coincidentally just about the last year Detroit iron ruled the US. I envision long lunches, heavy drinking, cigars and golf clubs.

Sure, they occasionally throw a bone to a woman or a minority; but most of those executive positions -- the really important ones in the boardroom -- are still held by legacy employees who never understood the rest of the world markets. How can any investor be confident in a group of executives that are so out of touch with the customers that they've missed the mark for over thirty years?

LA is a very progressive city when it comes to the number of cultures that all live and work here. I think it would make a Ford, GM or Chrysler executive nervous to be anywhere other than inside a luxury hotel or lawyer's office when they are in LA. But if they want to make it in the car business, they had better get used to the multicultural environment that is the lifeblood of LA. If we like a car here, it will be a hit anywhere. It's time for a turnover at the top of these companies. Chrysler was the first American car company to be shaken from its very foundation. So far, the results have been mixed, but promising. Maybe GM and Ford should bring in some fresh young talent from Los Angeles to shake their foundations. Hey, if LA can elect a Latino Mayor and Mexico hasn't invaded, perhaps GM and Ford shareholders should spark their own revolution. It won't be a surprise to us here in LA, but apparently it will sure make headlines around the world!