Should the government bail out GM, Ford, and Chrysler?

My opinion...

I don't have a good answer.

On one hand I don't think they should. I believe they need to learn from their mistakes and make themselves stronger from it.

On the other, if they go bankrupt, it could mean dire consequences for the others (Honda, Toyota, Nissan). If the big three go down, there will be a lot of parts suppliers that will go with them. They are strapped right now too. Those parts suppliers also build parts for Honda, Toyota and Nissan and if Honda, Toyota, and Nissan can't get parts, what would happen?

Thoughts?

 

big three go down

and this nation can say hello to a depression

people are forgetting that there is so much more at stake than the big 3 here ... there are TONS of smaller companies that rely on business from the big three ... we cant afford to lose the big three in that way where they just go belly up

not to mention, you know they were here for america when shit got crazy. both ford and gm were some of the biggest war time suppliers we had, turning auto plants into tank plants, ammunition plants, plane plants .... you dont turn your back on these companies, even after 60 years

 

Playing devils advocate here:

What happens if we bail them out and they end up squandering the money on silly things like private jet flights to Washington DC. They've shown they are not serious by doing just this already. They claim that it was for their personal safety... So are commercial jets unsafe? $20,000 for a private vs $1000 for a round trip first class ticket is not good buisness practice.

So when we were at war, and they turned auto plants into tank plants; do you really think they were supporting the war? I think they were jumping on the bandwagon trying to suck money from the government in an industry where there was money available. They wern't selling car since all the men were at war, so they needed to make money somehow.

(You have very good points! I'm not trying to be an ass, just get a lively debate going.)

 

It's a pretty fucked up situation overall. I say let them file Chapter 11 and restructure with a government bailout during that time. At least that way they can shed some of the shitty contracts with the UAW they have. I understand the bailout is supposed to get them to 2010 when they can turn over their pension control to the UAW but what if in the mean time it still fails. To be honest, I don't want them to fail at all and I can't figure out for the life of me how one can help them at this current point in time.

 

Yes, otherwise this country's economy may not recover for a very long time. If millions of more people lose their jobs, we are going to be in a world of hurt. IMO, the bailout money should come with some government oversight of what the company spends it on.

 

Nope let em fail.

 

Loosen the restrictions on the $25 billion in low-interest restructuring loans already passed by Congress.
Let the Big Three borrow to finance their daily ops, since that is their greatest risk in Q4.

GM has already shit-canned their replacement for the Escalade / Yukon / Suburban, without being told to.
If senators get involved in product planning, I think our auto industry will be worse off in the long run.

It took thirty years of trailing the Japanese in compact and mid-size car development to get the hint, but I think GM and Ford have learned that they cannot survive shoveling the same shit year after year. The trick is to put that lesson into action and plan accordingly.

I'd go on, but I'm dead on my feet.
Covering the LA Auto Show is hard when you're a one-man band. h:

 

You're talking about giving money to companies where it took 30 years to develop comparable mid size cars? It's taking $4 per gallon of gas and billions lost per year to understand their products are old and out dated and they should change it up? These businesses don't deserve $.

 

they have the 25billion already approved - use that to do what they need to do and be done with it - any more is just wasting my tax money to pay for things like jets - suv's - union's - pensions -

 

Make 'em work for it if they want it that bad. Serious reconstruction of each company's spendings habbits, enviromental protection.. etc.