I posited that GM Ford and Chrysler should be made to go through bankruptcy as a precondition for funding assistance.
Then the head fat cats flew to Washington in their private jets and insisted that they be spoon fed with taxpayer money and allowed to remain fat – in business models that are no longer viable.
While the car business is down for everyone, these morons are the only ones in imminent failure mode. Isn’t it obvious that the over bloated business model that did well in the 1950s doesn’t work today? Hello! Are you awake?
Bankruptcy will not close one plant that the economy won’t close anyway. If they refuse to make reliable products that are competitive, that is the disease. Allowing that to persist and allowing the over bloated company models to persist would mean that any money provided will not remediate the situation. It will simply be wasted in companies that remain out of touch.
The crisis of the big three auto makers of America can’t be cured with feeding the fat model more sugar. The model has to be changed if the prospects are going to have a hope of positive change. Even if you gave them money, they won’t make it on what they intend to do.
If the CEOs won’t give up their perks and insist on business as usual, that is proof beyond a reasonable doubt that they are incompetent to deal with today’s business climate in their industry. No one inside their companies would ever be allowed to say that and keep his job. Only outside intervention will have a prayer of saving these companies from their absurd “leadership”.
The people who work there need someone to make the model configuration corrections or they will not have jobs anyway. The model configuration corrections can only be made in bankruptcy. It could have been accomplished without bankruptcy if the process had started years ago, but that was rejected out of hand and still is.
Without restructuring of these obese models, the fat lady will start singing. You don’t giver critical organ transplants to people who are about to die anyway. It’s the same with putting more money into a dead business model.