GM Makes Case For Bailout
Posted on November 18th, 2008 by Tariq Nelson
In the video below, GM is asking everyone to contact their Congressman to voice support for a Big Three Bailout.
I am still on the fence, as both sides of the argument make convincing arguments.
Those opposed to the bailout argue that it is throwing away good money as the Big Three will fail anyway because of their archaic management. They argue that the country would go through short term pain, but in the long term would benefit when the market inevitably provides a superior car maker with modern business practices that will fill the void.
Filed under: Changing World
GM should just reorganize as a bank and get some o’ that bailout money.
Most of the “imports” are now made locally. In Canada, Honda and Toyota owns plants and over 50% of Japanese cars sold in Canada are made in Canada. I am sure the situation in the States, given Nafta, is similar. If people are not buying American cars, it’s not because they see Europe as some model, it’s because American cars are perceived to be poorer in quality.
We have been bailing out the auto industry for ages. In 1980, 92, and now 2008. It’s giving money to companies to make cars that no one wants to buy. And how did the leaders of the Detroit 3 go to Washington to ask for money? On their private plane.
Labour also has a lot to do with this. GM for example has every 2 person working to support 1 person on pension. They also are inefficient, hiring 4 people to do the job 1 person can do.
If the Detroit 3 go bankrupt, they can renegotiate contracts with their labor, become leaner, and restructure themselves (or be bought out by better managed companies).
What Can we common Poeple do about the Bailout? Nothing.. we just have to wait and see if the company comes up and develops new cars and prototypes to please the americal consumer