And the uninformed bias continues....
"I think the "Big 3" should just shut down their businesses."
1. Ford is not currently in danger of bankruptcy, and has taken no bail out money.
2.
"Toyota Motor Corp. lost US$7.7 billion, about 765.8 billion yen, in the January-March quarter - a bigger loss than General Motors reported - resulting in its worst fiscal year since the Japanese automaker was founded in 1937." quoted from link below.
http://ca.news.yahoo.com/s/capress/090508/business/toyota
"Let them die out and other stronger American auto companies will rise from the ashes."
Some how I don't think Chrysler being sold to Fiat is going to make for stronger American companies.
How is my statement uninformed? I was merely stating that the US government should stop wasting their money on floundering companies. And of course it's biased; it's my opinion!
1. I apologize. I forgot about Ford because yes, they have been under the radar lately with all the bailouts going around. I applaud them for running their business soundly and evolving in a time when business models are required to be flexible.
2. I don't see how quoting profits and losses is going to help GM and Chrysler. The only thing that matters right now is which company can pay their bills (and employees) and ride out the recession. The difference is that Toyota can soak the loss whereas GM is getting bailout help.
http://consumerist.com/5249141/gm-bankruptcy-is-probable
Even with free money they can't even get it right. So what did my tax/bailout money do? It let them live a couple months longer to make more bad decisions, that's what.
What American companies? There are only three of them left. Certainly you don't expect Saleen or Panoz to become world players?
And besides, it's not just the Big three that go in that situation. It's their suppliers too. What do you suppose happens to Pittsburgh Plated Glass, who supplies windows to their cars? Or Goodyear, who makes their tires? Or DieHard, who makes the batteries? Or one of the companies that make the brake pads, Distributors, Spark Plugs, etc. that make up an American car? Certainly you don't expect the Japanese companies to break their contracts with the companies who make their parts just to save these other ones.
Better to spend a few more tax dollars than save them and not have anywhere to spend them when the companies go bust.
No, I do not expect one of the smaller companies to take over as a world player, although it would be ideal. I think a new player(s) would be great. Kind of like how SpaceX is taking the reins in field of American space exploration. A small company that impressed NASA and is now getting government funding and technology. I guess it's time for a new "Ford" or "GM" to take flight and pave the way.
As I stated above, my heart goes out to these suppliers that will be affected but there are other car companies out there. Chances are, they will undergo huge job cuts to survive but will recover when more car companies enter the playing field. The power vacuum will be filled.
A few dollars of bailout was what it was last year. Now, both companies are asking for more. Dealerships are clearing out and factories are taking breaks. They're not the only companies that need a bailout. Even my bank went under (WaMu)! All of it adds up. I don't want me or my future kids to be stuck paying off a ballooning debt that could have been much less. The US government can pump all the bailout money they want but are people like you and me buying the cars from GM and Chrysler? It doesn't look like it. Would you buy a car from a company that may or may not be here in 2 or 3 years?