Should the Government bail out the Auto Makers in the US?

[Don't care]

If they're in that much trouble, I have the answer.

All three file chapter 11 in Federal Bankruptcy Court....the proper mechanism for this type of problem.

Allow the court to reorganize the company, overrule the compensation committee on matters of corporate payroll and review union contracts, as  well as other more involved items of issue.

[Monkeyleg]

I'm not blaming unions entirely, but they're a big part of the problem. The wages and benefits add $2000 to the price of each vehicle. The manufacturer can either raise the price of the car by $2000 to make the same profit as Toyota, or cut corners on quality. The Big Three seem to have chosen the latter, at least in most instances.

Management has made some ridiculous blunders as well. Here's an example:

A couple of months ago I stopped at a Ford dealership to see what kind of price I'd be looking at for a 2009 Mustang GT. I gave the salesman my list: GT body package, 5-speed manual, red. Should be simple, right?

Wrong. He did a search at dealerships within a 200 mile radius, but could not come up with the car I wanted in red. Why? Because red is the most popular color.

If red is the most popular color, why the hell don't they make more of the cars in red?

[Frontier509]

As I've watched the house representatives grille and criticize the big 3 automakers CEO's on how poorly they've run their respective companies it sickens me that these are the same govt officials who have driven our economy into the ditch.
These representatives sit up there and tell others how poorly they've done while our country goes down in flames due to their own corrupt or incompetent policies.

[Nitrogen]

As I've watched the house representatives grille and criticize the big 3 automakers CEO's on how poorly they've run their respective companies it sickens me that these are the same govt officials who have driven our economy into the ditch.
These representatives sit up there and tell others how poorly they've done while our country goes down in flames due to their own corrupt or incompetent policies.

Just because they are hipocrites doesn't mean they aren't correct.

Don't worry, they will get a bailout; this was just for show to their constituents and the press.   :rolleyes:

[Frontier509]

Just because they are hipocrites doesn't mean they aren't correct.

Don't worry, they will get a bailout; this was just for show to their constituents and the press.   :rolleyes:

Well just imagine the fallout from the relevant districts reps if the automakers decided to bag the unions and to stop complying with EPA OSHA and other govt mandated regs to trim costs to become profitable.
The automakers can't win.
I'm not concerned if they get a bailout or not, perhaps bankruptcy restructuring would help gets things back on track.
It's also not that the companies are producing the crap that they turned out in the 70's and 80's, they are making good products that are safe but they're still at least 10 years behind let's say Lexus in engineering and quality. All one rep could come up with was his disgruntlement in having trouble in finding the car of his choice in "blue". Another complained that the cars Detroit was producing were too good and lasting too long thusly taking new buyers out of the marketplace for too long.
The automakers have to got get free of the union and healthcare/retirement stranglehold they're saddled with or they will never see the light of day.

[Waitone]

We've easily lost 3 million jobs over the last 10 years to the wonders of offshoring.  We didn't seem to concerned at the time.  So howcome it is we are now bleeting over the loss of another 3 million jobs?  Is it because we have a different and new president beholden to labor unions? 

The loss of auto maker and supporting jobs is are lead pipe cinch.  But is makes absolutely no sense to keep pumping money into the current business plan BECAUSE WHAT THEY ARE DOING NOW IS NOT WORKING.

Go into bankrupcy, bust the contracts, off-load pensions on PBGC (I don't approve of it but that is what every other industry does when their business plans tank), clear cut management, stand around waiting for The O to deliver national healthcare, and finally emerge mean and lean.

[MicroBalrog]

Wait, wait. Let me get this clear. We let the Big 3 die now, UAW goes with them, right?

[Bogie]

Make 'em split up. Reorganize as to their core competencies. Which is probably boiled down to running a line.
 
Make the lines available to diverse companies who want to build cars.
 
Let them hire who they want, but let Auto keep the parts flowing...
 

[Gewehr98]

Reorganize under Chapter 11.

Dunno what that would do to the spare parts supply, or the defense contracts, though...

[grumpyguido]

Nope. Let them use Chap 11 to actually reorganize.  I agree that bailing them out will only delay the inevitable.