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Serious consideration needs to be given to GM, Ford, and Chrysler restructuring through bankruptcy. One of them will probably not survive(and shouldn't based on what they have done to get themselves in this situation) which will leave a larger market for the remaining companies. The bankruptcy route will provide much stronger motivation for the companies to change than going the 'bailout' route. If they go the bailout route they will just keep coming back for more money and they will probably get it since "we will have so much money already invested in them". Why do weneed three major car companies?We really don't.
I understand the issue about lost jobs but lost jobs are going to happen-we're just delaying them at a much higher cost.
The problem with bankruptcy is that it will most likely be Chap 7 liquidation instead of Chap 11 restrcturing. Also, people won't buy cars from a bankrupt automaker.
Chrysler is privatley owned and at one point was foreign owned. They've been bailed out before, they have had enough chances. If any are going to be allowed to fail it should be Chyrsler.
What we need is a " peoples car ". As long as we are throwing money at Detroit , lets have all three make a car we can use , and export to other countries. the car would be universal , same drivetrain ,super effective new tech,. and cheap to operate and own. Each MFG can modify the outside a little , but , all cars would be the same mostly. prices would be fixed by the Government ( since we are paying for it anyway ) , and it would also have a shelf life , so to speak.each year the tags would cost more , until , it was cheaper to trade in , and , get a new one. All cars would be recycled ( no used cars , after say 7 years ). If all the brains got behind this national project , we could once again excel in a world market , provide jobs , and economical transportation for the masses.
What we need is a " peoples car ". As long as we are throwing money at Detroit , lets have all three make a car we can use , and export to other countries. the car would be universal , same drivetrain ,super effective new tech,. and cheap to operate and own. Each MFG can modify the outside a little , but , all cars would be the same mostly. prices would be fixed by the Government ( since we are paying for it anyway ) , and it would also have a shelf life , so to speak.each year the tags would cost more , until , it was cheaper to trade in , and , get a new one. All cars would be recycled ( no used cars , after say 7 years ). If all the brains got behind this national project , we could once again excel in a world market , provide jobs , and economical transportation for the masses.
Wonderful idea Comrade! I'm sure the Car Czar will love it!
Take the 14 billion, and instead of giving it to the same incompetent boobs at GM and Ford, use it to buy a mllion American cars, to be given to taxpayers earning less than $20,000 per year. The cost will be partially recouped thorugh tax revenue on the vehicles, thier parts, and the gasoline used to power them. In addition, anyone selling the free car (they will be required to keep it for at least one year) would be required to pay the sale proceeds to the government.
Wonderful idea Comrade! I'm sure the Car Czar will love it!
However you put it , we will need to start thinking this way more. Socialism lives now , thats all we have left to export. Henry Ford did it with the model T , we , can do it again....and , we did it during WWII as well , all for one one for all , the American way....think about it.
Take the 14 billion, and instead of giving it to the same incompetent boobs at GM and Ford, use it to buy a mllion American cars, to be given to taxpayers earning less than $20,000 per year. The cost will be partially recouped thorugh tax revenue on the vehicles, thier parts, and the gasoline used to power them. In addition, anyone selling the free car (they will be required to keep it for at least one year) would be required to pay the sale proceeds to the government.
At some point , we will run out of cars........we need a solution that will keep going , and provide income , not give a ways.
The problem with bankruptcy is that it will most likely be Chap 7 liquidation instead of Chap 11 restrcturing. Also, people won't buy cars from a bankrupt automaker.
Chrysler is privatley owned and at one point was foreign owned. They've been bailed out before, they have had enough chances. If any are going to be allowed to fail it should be Chyrsler.
I think Daimler ( MB ) , still owns 20 per cent of Chrysler , why not sell it to them at a huge discount...... I guess , thinking about it , they are probably looking for a way to get ride of the 20 per cent......at a discount !
No matter what happens now, bail out or not, the Big 3 are doomed. No one is going to buy a car from a company bordering on bankruptcy. Secondly, financing is difficult and unemployment is on the rise.
Foreign car manufactures aren't selling either. I think this is exactly what the Big 3 exec's are trying to accomplish. If they can close American operations that would end all their contractual obligations and that means reneging on pensions and retiree health care and blowing off any contract promises to current employees. The largest selling vehicle in China is Buick and GM is hot in Russia. Ford has a monster plant in Brazil. The Big 3 exec's believe that if they can close Detroit with America's blessing they will still be able to sell their cars to Americans. The only people that will get hurt is the people working on the line and all the smaller support businesses throughout the country all who had nothing to do with the companies demise. The CEO's and exec's will simply transfer to other countries and continue to collect their extreme salaries and probably get a huge bonus for cutting costs. Also, we must consider the lose of tax revenue, both local and federal.
Regardless, any solution would be a day too late and a dollar short.
No matter what happens now, bail out or not, the Big 3 are doomed. No one is going to buy a car from a company bordering on bankruptcy. Secondly, financing is difficult and unemployment is on the rise.
Regardless, any solution would be a day too late and a dollar short.
This is sort of my thinking as well. The tax dollars given to the financial institutions have not yet loosened the flow of money and loans so most people couldn't buy a car anyway. If these auto companies truly want solvency they need to restructure under a legal bankruptcy scenario where they may be able to throw off the demands of the union. It seems certain that a Democratic-appointed car czar will not be able to ignore the demands of the union under a bailout restructuring and tax payers will continue to be on the hook.
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