Auto Bailouts - GM Facts and Fiction??
Here is a website of great interest to millions of people - right now. There are a lot of problems with the U.S. auto industry...there is not one single solution or one single problem we can point a finger at. I'm not sure if this website helps or hurts as we try to grasp the situation.
The problem I have with the bailout is that ultimately, we are just injecting some cash into a business that may or may not be used for growth and we may or may not see any of it returned to us taxpayers. It just isn't clear what will happen with that $25 billion. The Big Question I have for the Big Government regarding the Big Three is, will this bailout PREVENT an auto industry crash - helping us rightfully avoid the catastrophe promised if they do fail? My feeling is that if the Big Three fail it is of their own doing - is this something the government can prevent without screwing it up in the future? I suppose that there are some protectionist measures that could occur, but that will most likely result in increased costs for consumers...
As taxpayers then, shouldn't we be calling for the government to create manufacturing incentives for the creation of new domestic car companies with this bailout, which is going to happen with our without our consent? Not to be too pessimistic, but do we expect the Big 3 to change the overhead structure of their health care and pension legacy costs, union relations, supply chain and purchasing practices anytime soon? A lot has to happen to be competitive with cash-flush Toyota and others.
The only thing that is going to change the Big 3 is the Big 3 themselves. Economic conditions, tax incentives, government policy and consumers will change - but whether or not the Big 3 anticipate problems and proactively adapt to these changes is ultimately up to them, is it not?