Still In Denial

"We're here not because of what the auto industry has done," he said. "We're here because of what has happened to the economy."

This sort of view from within the industry is a great indicator that a bailout is useless. If the Big 3 and their workers cannot agree that they have to make better cars and make less money, then they should head straight to Chapter 7. Not 11, 7. Liquidate. Yes, the loss of jobs and the cascading effect will hurt, but a $25 billion "bailout" will only prolong the inevitable and add to the price tag. And the unions are completely unwilling to accept that to keep jobs, workers will lose pay and/or benefits. Pleasant? No. Better than unemployment? I'd say yes.

Let GM go. I t can't or won't make cars better than the Chevy Cobalt and has an impossible financial future with retirees' pensions and health care. We can spend billions to keep this train wreck on life support at the cost of tens/hundreds of billions...but for how long is it worth it?

UPDATE: Clout Has Plunged for Automakers and Union, Too

• Some Congressional support has also dwindled because the automakers closed plants in other states, like Alabama, Georgia, Louisiana and Delaware, and consolidated their operations closer to home. Meanwhile, foreign auto companies have built plants across the South, picking up lawmakers like Senator Richard Shelby, Republican of Alabama, who now are more allied with the foreign car companies.
• ...one of the U.A.W.’s most prized accomplishments — winning income security for its laid-off members — is not helping the union as it argues for money to help protect its workers at a time when employees across other industries are facing layoffs.

If you were a bank, would you loan GM or Ford money?

- posted by john @ 7:13 PM