After discussing this issue with others, I have come to the conclusion that this is not like bailing out the banks.
The banks are the focal points of this economy. They are the ones that allow people to loan money, make money, and make purchases of houses, cars, and boats. They stimulate and keep it chugging.
The auto industry on the other hand, does is only part of the economy. They might employ something like 1.5 million workers and keeping them at a job is important, but that isn't the issue.
The issue is that they have to rejuvenate, remodel, revolutionize, and retain their spot in the auto industry.
They should be able to sell green or efficient cars inside and outside the United States just as well as Honda, Toyota, VW, BMW, or Hyundai.
A load of cash can only do so much, and it definitely will not change the management or the unions.
Showing posts with label Unions. Show all posts
Showing posts with label Unions. Show all posts
Wednesday, November 19, 2008
Tuesday, November 18, 2008
Bailout Detroit?
Should the Government bailout package be used to help out GM, Ford, and Chrysler in Detroit?
They are having such a tough time because the buyers are uncomfortable in making a decision on a car and the lenders are not confident that there borrowed money will be paid back.
Given them billions of dollars would not solve that.
They are also having a problem in revolutionizing there models and cars to keep up with the international competition. They are disorganized and slow moving to change in their development processes.
A hunk of cash probably will not help them do that.
What I think is the biggest problem for the American Auto Industry, is the amount of control that the unions have in the workplace. They are hurting profitability of the few cars being sold. They are not able to set out competitive prices. Unions are not allowing the companies of downsizing in little steps, only in big ones.
By not giving them a piece of the bailout, the auto manufactures might have to file bankruptcy, but it would loosen the grip of the unions and be a prime example of why Unions cons outweigh their pros.
The money would just prolonging the inevitable.
They are having such a tough time because the buyers are uncomfortable in making a decision on a car and the lenders are not confident that there borrowed money will be paid back.
Given them billions of dollars would not solve that.
They are also having a problem in revolutionizing there models and cars to keep up with the international competition. They are disorganized and slow moving to change in their development processes.
A hunk of cash probably will not help them do that.
What I think is the biggest problem for the American Auto Industry, is the amount of control that the unions have in the workplace. They are hurting profitability of the few cars being sold. They are not able to set out competitive prices. Unions are not allowing the companies of downsizing in little steps, only in big ones.
By not giving them a piece of the bailout, the auto manufactures might have to file bankruptcy, but it would loosen the grip of the unions and be a prime example of why Unions cons outweigh their pros.
The money would just prolonging the inevitable.
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