Bankruptcy, Not a Bailout, Is a Better Option for Automakers
James Gattuso, Senior Research Fellow in Regulatory Policy at The Heritage Foundation, explains why Congress should not bail out automakers.
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@AJstar9 I never said that toyota employed more people then GM did.
I made these posts way before the toyota recalls took place, and up to that point, toyota's and honda's had a bullet-proof reputation for quality. it was also thanks to those companies that the big 3 finally got off their asses and began to modify their line-ups in order to raise their CAFE.
japan innovates and we imitate…. how ironic!
@AJstar9 – my point is imple. Unions artificially inflatethe cost of goods because their wages are artificially inflated, and the end consumer has to py for them. I got nothing againt you, or anybody union or not – I can only talk about my experiences, thats all
@AJstar9 – define" so great". And, if they cut out the fat [aka unions], they would be doing "so greater"
If I had the money to buy a new car, I'm so sure I'd buy one from the big three. I'm a fan of GM but I don't see anything they make that's worth buying. They've always struggled with their interiors (very brittle/hard plastic that's very noisy and fails after time)
Delta airways was in bankrupcy but people kept flying with it and now it is out of bankrupcy. Bankrupcy protection allows the company to keep trading even though they are insolvant.
My Senators voted no on the $700 billion bailout.They knew it was BULL—-!AIG executives had a big retreat & spending sprees
with taxpayer money!Plus these bailout companies are still giving big bonuses to executives.They are just calling them different names.Jay Leno said their excuse is
they will leave if they don't.Leno said yes we
need to keep them around they are doing such a
great job.
lend the money, ON THIS PROVISION: a new regime in the executive office of managers and engineers has to be adhered to, to properly remedy and revolutionise the desire for these brands again. there should be appropriate interference from external technical staff -etc-etc that can frontload the necessary design, account management and all other faculty to get these guys moving again. it has to be open to thorough scrutiny and the money feed thru trust account. Otherwise NO !!!
Bailout is GRAND THEFT AUTO of taxpayers money
you will just delay the inevitable they already failed
they will burn through the billions in couple of months then what ????
That's what the US auto makers get! DO you really expect to make crappy cars and do well in the auto business? WHAT CAN OF PAINT WERE YOU SNIFFING?? I really do not see any Asian or European people driving around in a Ford Taurus or a PT cruiser. Instead I see a lot of AMERICANS driving HONDA, ACURA, TOYOTA, LEXUS, NISSAN, BMW, AUDI, MITSUBISHI, INFINITI, !!!!!
There is no question that unions had their time in the US and that a lot of gains were brought about by unions, but their time has passed.
I agree. Let them go bankrupt. I think this is just a band-aid fix. These companies are going belly up. People are mad about the bailout and I have heard people say they would buy a Honda or Toyota
If we had more people in unions, then we would have nore industries asking for handouts on Capitol Hill because they would be burdened down by senseless union contracts and not be economically viable.
GM—– mark of excellence—– Ha Ha Ha Ha let them die. Maybe the CEO can get a job at Walmart as a door greeter. Better yet a shoe salesman. He would take a private jet to the stockroom to find a pair of shoes though
This has nothing to do with nationalism. Toyota employs more americans then GM! So if you really wanted to support your country, youd buy a camry over a malibu
The big 3 represent everything that is wrong with our country… they're 3 underacheiving companies that would rather focus their dollar on profit rather then taking risks on innovation. They're turning into a backwards Japan; they take something that already exists and make it worse. The foreign market makes a better vehicle, PERIOD
Respectfully, you missed the entire point. I make good money now and have health insurance(without a union) and my post had nothing to do with jealousy of anybody. If Ford Motor Co. pays 6 guys $60 and hour to do nothing, for 4 days, that's $11.520. Do you think Ford absorbs that cost? I doubt it. They either pass it on to the buyer in higher selling price or cut quality on the car elsewhere. Why was 1 penny of that $ necessary? No. Like I said, the union contracts are the problem.
The union contracts are the problem.
When I was in college I painted industrial bldgs. over Christmas break while the plant was closed down. The union said they needed a skeleton crew present. So, these $20/hr. guys were in there (doing nothing) over the weekends, so that's double time, and it was a holiday, so that's triple time. 6 guys in the plant sitting around all weekend making $60/hr on their union imposed skeleton crew and not one bolt on one car got assemled. My tax $ to fund that? No
Listen, everybody has 2 cars in the drive. if one was a pure Ev 100 mile, that's good for 340 of the 365 days a year. Then gas would be so cheap you take fuel cars on trips. There is only one good reason for not building electric cars, that is that the Car companies REFUSE TO, because there's nothing on them that WE can't fix OURSELVES. Their combustion engine tech. is to complex, therefore we have to pay THEM for the repairs and labor, hence they keep on making money long after the sale
as much as it pains to say this but my next vehicle will be a toyota sequoia. it was the escalade, but it's just too expensive to buy and
maintain. besides, it's just a yukon with a cadillac sticker anyway
Bailing out would be a mistake, since essentially you would be paying these companies to idle their plants until a better time comes. They have estimate that the real run rate for autos would be about 15 million in U.S. were the economy in recovery mode. If you do divide 25 billion dollars by 15 million cars that equates to approximately $1600 per car. Why not give this money to consumers in the form of a rebate for any vehicle purchased.Automakers and dealers could add their own rebates also
Bob Lutz of GM siad couple of years ago that Toyota is losing money on the Prius and its a publicity stunt.
true toyota WAS losing money on the prius but now ?
laughing all the way to the bank
while GM sinks…….. "LIKE A ROCK"
Why should I buy an American car when the foreign market makes a better product? Why should I support an industry that brought the union upon itself and didnt improve vehicle quality until better built vehicles from japan and germany forced them to? Why should I not allow free-market darwinism to run its course and weed out the incompetent? Why should I support an industry that has drug its feet in complying with CAFE standards allowing Japan to introduce the hybrid and OWN THE MARKET!?
Good points, but another area of restructuring is also needed: government regulation.
I recently heard Yaron Brook of ARC make an excellent point about CAFE standards forcing the big three to create unprofitable vehicles.
If their structural costs are prohibitive, then the government compelling them to make these unprofitable cars, as well as other regulations, are a significant part of the problem.
nobody is going to bail me out..they paid them union employees way to much money…so the way I see it…you did it to youself
My thoughts are if you think the auto industry is too important to fail, and if you want to bail them out, here is my suggestion.
Buy one of their cars.
If you are going to bail out a company you might as well get something for it. If we bail out the big three automakers the way we are bailing out the banks we won't get anything in return. Just more of the same stuff that created this situation in the first place.
None of the Bid 3 Management have taken a pay cut.
That is paramount to even consider a Taxpayer Bailout!
Only pay to retool to Diesel and Electric Auto production. NO MORE GASOLINE ENGINES…
"Restructured" misses the point. It is TOO LITTLE, TOO LATE! Cheap Fuel-Less Transport tech has been invented. Cars don't have MOTORS anymore, are not even "machines" ( more than one moving part). That even the computer bloogers don't understand the transport is going solid-state in entirety, comments pungently on just how behind the curve US has become! Get HIP, or you all WILL end up on bicycles (if lucky)!