[MotoSook]

Without a major management shake up and/or take over by a firm or executives from outside the automotive industry, any bailout of the auto industry is just throwing money into the toilet. They will continue to be wasteful and very little will change. A complete failure of the US auto industry may result in a better more efficient rebirth. Unfortunately, I don't think the policy makers see how terrible Detroit is operated (probably as inefficient as Washington)...and will probably bail them out to prevent the large loss of jobs and the fallout that would follow. BUT! Can a temporary collapse lead to a better future? Can the US make it through a couple years without Detroit?


Good example of a poor bailout plan is the banking bailout. It has had little impact and is likely a borderline failure as it hasn't done anything to change the habits of banks to act in a responsible and productive manner deserving of our tax dollars. It appears banks are just using this as an opportunity to go after weaker banks and hording cash to secure there position. They have done very little to improve the economic mess they created. When you give money to a bunch of greedy men and women who got themselves into the mess because of their greedy reckless nature....did we expect anything different?

Same would likely be the case with Detroit. Throw money at them....but the way that money is spent will not change. The auto execs will use the money to operate the same as before while hoping the economy turns around and people start spending money again. They'll trim the fat...but the core of their operation is still wasteful and ineffiecient. They will make feeble attempts at new products, but people will not buy in the numbers that we saw in the last 10 yrs. The profit margin of their new product will be smaller than what they saw in large trucks and SUV's. America and the world has been spending in excess for years, and the current economy will linger for a few years in the minds of smart consumers. Unless the auto companies come up with a realistic plan to stay in business for the next 5 years, the goverment might as well let them fail. A realistic plan does not rule out the loss of jobs and reduction or loss of pensions and healthcare to retirees.