The following story is reprinted from the Ann Arbor News, Saturday, October 27, 2007
Employer seeks to get companies to offer new-car rebates
Nils Rosaen Sr. doesn't have a mission statement on the wall and he doesn't
have a title on his business card.
"I tell people to make up their own title and put it on the card. That's how I
feel about titles," he says.
Rosedale Products Inc., his small family-owned company that makes filters for
industrial liquids, has grown over 25 years, adding offices in Texas,
California and Beijing. He's says it's because he's simply outlasted his
competitors and remained independent. "If you last, you end up winning," says
Rosaen.
The son of a Swedish immigrant, Rosaen (pronounced Rose-aine) employs 80
people in Scio Township, mostly in manufacturing, but also in engineering,
sales and accounting. In recent years, he has watched as more and more
out-of-work engineers from the domestic automakers have come to him, seeking jobs.
Rosaen doesn't waste time debating the politics of buying a foreign car. The
government alone can't fix the problems the domestic automakers face. nor can
the United Auto Workers or the auto makers themselves, he says. The problems,
especially legacy costs, are simply too big.
"It's up to the individual companies to do something."
Rosaen did something.
Last month, he offered his employees $750. toward the purchase of a new
Chrysler, General Motors or Ford car.
You might assume, as I did, that Rosedale does a lot of business with the Big
Three; however, they composed only 10 to 20 percent of his $15 million in
sales this year.
So far, two of his employees have taken his offer and purchased new cars - a
Buick and a Ford - and he has since increased the offer to $1,000.
Combined with rebates from the automakers, Rosaen hopes the cash incentive
will be enough to nudge employees to buy from the Big Three. More than that,
he hopes other, larger employers will follow suit.
"It doesn't take much," says Rosaen, who drives a Cadillac DTS. "If one of
(the domestic automakers) sells 1,000 more cars in Michigan, their stock price
goes up and it's like a ripple effect."
Like the auto industry, Rosedale Products has had its ups and downs in recent
years.
For two years, Rosaen suspended the company's match to employee 401 K plans
because, he says candidly, "We were broke." Business has been better this
year, so he reinstated it, with a 3 percent match instead of the 6 percent he
used to offer. Employees must pay 20 percent of their health care costs.
I asked him why he bothered to offer rebates to buy new cars if the business
isn't flush with cash.
"The benefit for me is, I guess, the publicity and maybe that gets the
attention of someone with power and money, and it would do some good," he
says. "It's just an idea."
It's an idea that could inspire others, as it did me, to remember that we're
all in this together.
Business Editor Mary McDonough writes about local business issues for the Ann
Arbor News.
Reach her at mmcdonough@annarbonews.com or 734-994-6861.