let the auto industry fail ?

Question

ok so how bad would it be to let them fail . so they file bankruptcy ! does not mean they are gone , just means they have to start in a new place with the Unions gone from it all right ?

Answer 1

You are correct. The US divisions of Ford, Chrysler and especially GM should be allowed to go into bancrupcy and either start over or sell their assets to a firm that will make them run correctly and competitively. That's what needs to happen for the industry to ever be successful.

Answer 2

I don't agree that bankruptcy is the right thing because it would also bankrupt all the jobbers, die shops, suppliers, transporters, dealerships and other secondary businesses that depend of the Bid Three, not to mention their 3 million employees and stockholders and retirees. If all those secondary businesses go, that will stop production in the foreign owned auto factories in this country as well.



Most people don't have a clue how much fat has already been skimmed off the GM stew pot, how hard the company and union have worked to bring the labor costs per car down so they'll be competitive with foreign owned manufactures in the near future. With the 2007 GM/UAW contract they agreed not to give new hire-ins pension rights and starting in 2009 the UAW is scheduled to take over the health care costs. And older workers are being replaced at the rate of 20% per year. Getting rid of the health expense alone will save the company six billion annually. Meaningful restructuring has been going on at GM, for a long time. Great hybrids are in the pipeline ready to come out next year and the employee pay package per hour including benefits is on course to drop by 2010 to within a Starbucks cup of coffee to what the foreign owned car makers are paying in their North American workers. If Wall Street hadn't failed, drying up the credit market, GM and the other Big Three wouldn't have had to ask Washington for the bridge loan.

Answer 3

Most companies that declare bankruptcy disappear and their competitors take over their market share, but rarely their employees or their facilities. You are indulging in wishful thinking if you believe that as a bankrupt company they will be able to make a profit selling cars to people who will need services and parts for years after the purchase. Our choice is to bail them out and hope they get better or let them fail and buy our cars from foreign owned car companies. When you breaks something as complex as the auto industry with a web of suppliers and dealers, you can not just put it back together again in a form the that is more to your liking. We were supposed to learn this from the nursery rhyme "Humpty Dumpty sat on a wall; Humpty Dumpty had a great fall. All the King's horses ... Couldn't put Humpty together again!"

Answer 4

I am of course against bail-outs of any kind, let those fools fail, poor management should never be rewarded, those are the risks of being a business; while in that case why don't they bail out all the other little businesses in small towns as well, they tend to fail at times as well, but no, the big boys can't accept that they have lost and now they are crying about it when they should've played by the rules.

Answer 5

and need some help lend the money so they can pay it back would help .and all those assembly plants that make cars here from offshore sounds good .all their profits go back to offshore companies I guess that's OK with you. the big three have problems with the two of them go down you will see a huge problem .and I'm sure all the workers at the BMW plant can buy their cars of the two better check and look around .the greed of the big companies have also hurt themselves .you a look at the bonuses that they paid in self and looking at houses they live in in a look of the house is the line workers live in .

Answer 6

None of the US auto makers would emerge from bankruptcy. Allowing them to fail would put millions of people out of work, and not just people in the auto industry. 1 factory job supports 5 other none factory jobs. For every 1 auto worker left jobless, 5 other none auto jobs would evaporate as well.

Answer 7

No - it will be a HUGE loss for the US. Except for renewing (or better yet canceling) union contracts, we can't let the US auto companies and their organic manufacturing base fail, just as we can't let the banks do so. Legacy health-care, US unions and jobs banks programs the US auto companies have to pay (but the foreign companies don't pay their workers), has largely created an unlevel playing field.



The one gripe I have for GM and Chrysler (Ford finally seems to be getting it) is that they seem to not care about reliability (planned obsolescence - requiring people to buy cars more often) while the Toyota's and Honda's of the world get how important this is to consumers. So wake up GM and Chrysler!!



Peace

Answer 8

everyone one of those american based companies' cars cost $3,000 more than a foreign cars with the same dollar amount of parts. Unions screwed our automobile industry up. Assembly line workers at GM can earn up to $198,000. A broomman makes $28/hr. What is wrong with this country! How do judges make more than teachers!

Answer 9

the motor vehicle marketplace might have went Bankrupt, Re-prepared, and been plenty greater ideal as we talk. And... they could be making greater efficient automobiles. Obama Failed American, as quickly as returned, eh?

Answer 10

the auto industry goes bankrupt and the japanese and germans buys everything in a big sale minus union labor and start fresh, if those towns refuse to work with no union then they shut em down again and they don't loss that much

Answer 11

Anything that would create an opening for Asian nations to have more power over this one is not a smart move. America first, whatever it takes.

Answer 12

Right!

In 1978 a fully loaded Pont. Trans.Am listed for $6500.00

I bought 2, and making little more than $30,000.00 a year

I havent bought a new car since! Duh! I wonder why!

Answer 13

Let the companies fail. The equipment and factories won't go up in smoke. There will be reorganization to have profitable industry people can count on. I'm not against the Unions per se, but I am against US having to pay for an unsuccessful business model. They designed it, they need to take the consequences, and we need our money ourselves.

And if we bail them out who says they won't use the money to bolster operations at their Mexico plants, in any event? We bailed out AIG that operates in over 100 countries. What makes US the ATM of the world?

Answer 14

Them filing bankruptcy will not eliminate debt like a chapter 7. It would do no good at this time either. No creditors are coming after them.



Unless they change the way they do business and provide products that Americans want then they are doomed no matter what.

Answer 15

Remember that Mitsubishi, Toyota, BMW, Mercedes... to name a few are building vehicles in the USA. They aren't asking for help, because they are better managed. If Ford fails, I have a personal problem, because I'm wondering where I'll get parts to keep my F150 running.

Answer 16

Correct Good thinking!!!!