An administration truly committed to “change” ought to consider this option: bankruptcy.
It’s not the end of the industry, but a new beginning.
- First, it’s really not so radical, in terms of magnitude.
- Yes, shareholders would stand to lose out, but with GM’s current market capitalization of just $2.5 billion, they wouldn’t lose much. Apple, by comparison, is worth $87 billion.
- *** I guess we will start using the argument
- that is comparing - Apples to GM
- Second, reorganization would put the automakers on a sustainable course. Key are labor costs:
- Gold-plated salaries and benefits packages for union workers mean the automakers lose a bundle on most cars sold.
WHO gets the REAL Gold-plated salaries and benefits packages ?
Workers or Executives?
Answer = Exec...
- There’s no incentive to renegotiate when government dollars to pay those contracts are a real possibility. With a bankruptcy judge’s approval, collective bargaining agreements can be reformed to fit economic realities.
- Third, bankruptcy is the only way to restore innovation to the U.S. auto industry. In the end,
- the automakers make money by producing vehicles that consumers want.
- *** But Detroit wants to TELL
- and advertise
- what Detroit
- WANT THEM TO BUY
- But any government money is sure to come with strings attached.
- Pelosi, for example, said the government would exact a “recoupment” for any investment of taxpayer funds — specifically, a say in what kinds of cars it produces.
- *** THAT is BS
- That’s a recipe for certain failure and future bailouts. Bankruptcy, in contrast, strips a company down to its valuable assets and then sets to putting those assets to work in the marketplace. Whether it works or not, it’s the best chance for success.
and then they end it wirh -
MAY NOT WORK.