I'm not happy about this. My fear is that the Big 3 may no longer be viable and we just threw a bunch of money down a rat-hole. I also fear that this is a bone to the UAW. I'm hearing calls for the head of GM to step down, but no such call for the head of the Union. Both are complicit here.
And a "Car Czar"? At what point has any governmental entity shown the ability to make good business decisions?
This is particularly troubling:
On Monday, members of the United Auto Workers, active workers and retirees, were on Capitol Hill to make the case that the auto industry deserves financial help from the government.
Frank Hammer, a retired GM worker, rejected the notion that the major automakers are suffering severe problems because of high wages and costly benefits for workers.
"The blame lies directly with the reckless behavior of Wall Street and the politicians who have removed all constraints on their unbridled greed," Hammer told reporters at a news conference.
"We urge Congress to endorse the bridge loan immediately, although we reject the notion that auto workers must make further concessions for its approval," he said.
If both parties are unwilling to make significant concessions, car makers will be mired in the same mess they are currently in. I also don't see how this statement makes any sense on its' face?
To the comments that failure to bail out the Big 3 will lead into a recession, the same thing was said about bailing out banks or the recession would get worse.....we bailed them out and the recession got worse anyway. To reward Ford, Chrysler and GM for mismanagement isn't going to fix the problem.
And what of other companies going to bankruptcy? The venerable Tribune Co. filed Chapter 11 today. Why shouldn't they get a bailout?.
This could work....then again, it may not.