The chief executives of GM and Chrysler said they could run out of
funds without the government’s support. GM CEO Rick Wagoner said the
package is needed to “save the U.S. economy from a catastrophic
collapse.” – http://online.wsj.com/article/SB122703811621838291.html
That is what happens when your business model is broken. The Management of GM and Chrysler are coming to grips with the BROKEN businesses they run. Saddled with UAW contracts and long term obligations that are simply ridiculous and a product line that no one wants, what else do these guys expect?
We bailed out Chrysler once before, what did that get us? Another bailout request about 30ish years later. If the business is broken, let the management fix it.
The reality is that if GM, Ford or Chrysler go down it will be very painful for the US. However, a better business will pickup the pieces, hire the workers and get to moving on a new automotive front. Toyota isn’t bankrupt, neither are Honda, VW and a myriad of others. If GM Chrysler and Ford can’t make it on there own today, why should we believe they can do it tomorrow?
Just my two cents.
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