NOT!
I cannot be the only person in the world who thinks that if a business cannot survive on it’s own it should fold. We bailed out that banks, the bail out failed a month later we got the secretary of the treasury saying we need to go a different direction so obviously those hundreds of billions you handed out like candy on Halloween did squat. Now you want us, the American people, to believe you’re going to rescue the auto industry, a dinosaur that is no longer relevant?
Now don’t get me wrong I understand there is a whole ecosystem surrounding the auto industry; Hundreds of suppliers that have thousands of worker and factories. Perhaps for that reason we should rescue them but here is what I say we do: Let them go bankrupt and restructure to get the blood sucking united auto workers union under control and manageable.
I think the biggest part of the problem is the union. These guys are getting paid way too much when you add in benefits the manufactures are utterly screwed. When you have some guy getting $40/hr plus benefits and retirement to put tires on a car you’ve got problems. Wal-Mart has guys changing tires for less than $10 an hour and it’s more work than just putting on a set of tires.
Japan, China and all the other nations that are leading the sales numbers for cars don’t have the UAW to deal with and on top of it have much cheaper labor to boot. Detroit just cannot compete with that. Don’t get me wrong unions had their place back when (legal) immigrants were getting taken advantage of because they didn’t know the system and in some industries labor unions still service their people well however UAW union has Detroit over a barrel. The UAW has serviced it’s members well but screwed over the auto industry and is now we’re risking the UAW screwing over all Americans by bailing out Detroit.
Secondly Detroit is putting out utter crap in the last 3 years I can only think of maybe 4 models that appealed to me. I can think of a lot more foreign models that hit my eye. Why?
I say let ‘em fold, get their labor situation under control, and then hire some overseas talent for design.
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