Don’t Bail Out Crappy Carmakers
If Don McLean were to sing his hit song “American Pie” today, he might want to think about driving a “Hyundai to the Levee.”
Because at the moment driving that Chevy might be a bit problematic.
America’s automobile industry is on the verge of becoming extinct, and deservedly so.
It is producing a vastly inferior product at an ever-escalating price, an inevitable byproduct of having UAW goons and their socialist “pension fund managers” calling the shots.
Anyway, as Detroit automotive executives grovel in flashy suits before corrupt politicians on behalf of their thuggish union bosses back home, a bailout proposal that started at $25 billion is now hovering in the $34 billion range.
As we’ve said before, these companies shouldn’t get one red cent of taxpayer money – let alone multiple billions.
Just take a look at Consumer Reports, which includes rankings for “best-in-class” that influence the purchasing habits of millions of American automotive customers.
In categories like fuel efficiency, safety, luxury, family-friendliness, owner satisfaction and driving fun, Consumer Reports ranks the world’s best cars, trucks and SUVs. And guess what … of the 42 cars to receive CR’s coveted “best-in-class” designation, only one of them was made by Detroit’s Big Three.
Seriously … ONE car, people.
That’s why bailing out this sort of incompetence will ultimately do more damage than good.
Sure it will save a few jobs in the short run, but the economic bleeding isn’t going to stop anytime soon.
The reality is simple – the world has gotten more competitive. America hasn’t.
The world’s automotive companies have insisted on efficiency and “total quality management,” America has insisted on exorbitant salary and benefit packages and union kickbacks.
Is it any wonder the Big Three are in this mess?
Let ‘em hang, we say … and good riddance to the union rats who would go down with the ship.
Of course, the presence of those very union rats is precisely why this latest bailout will likely be approved.
After all, the only group of people who love kickbacks more than pension fund managers are Washington politicians …
Comments
By kdrobertson on December 4th, 2008 at 1:24 pm
Well said!! Down with the Big 3!
By EyesWideOpen on December 4th, 2008 at 2:48 pm
Pray tell! Preach the truth to power.
By Crooner on December 4th, 2008 at 3:05 pm
Let’em eat cake. And to hell with the National Security implications.
By FurtherMore on December 4th, 2008 at 3:18 pm
Further, just look how many vehicles on this “best” list are made right here in America by “foreign” manufacturers:
Honda Accord – Ohio (and soon Alabama)
Honda Odyssey – Alabama
Honda Civic sedans – Indiana
Toyota Avalon – Kentucky
Toyota Sienna – Kentucky
Toyota Camry Hybrid – Kentucky
Toyota Highlander – Indiana (in 2009)
Not to mention the Mercedes plant in Alabama and the BMW plant right here in South Carolina.
Those manufacturers pay salaries, benefits and taxes right here in the United States. How is it right for the US government to pick winners and losers at the expense of these companies who DON’T have fatally flawed business models and products?
By Delbert on December 4th, 2008 at 4:13 pm
What about the hundreds of millions in incentives we provided to get each of those companies in the states?
By Don Johnson on December 4th, 2008 at 4:28 pm
The Big Three are suffering for fleecing the American people. For several years, they built their company on loaning people 100% of the cost of a car PLUS the $5K to get out of being underwater on their trade-in. So you took a loan for $35K on a $30K car that was worth $18K when you left the lot.
That’s unethical at best, and it should be criminal. They brought it upon themselves. Bye-bye GM.
By Draven on December 4th, 2008 at 7:15 pm
So much hyperbole, so little understanding.
By Scared of the System on December 4th, 2008 at 9:17 pm
I agree, and I know that banner ad changes, but does Chevy know they are advertising on top of an article slamming them?
By Joe Blow on December 5th, 2008 at 9:45 am
IT IS A LOAN.. NOT A BAILOUT…..
By Joe Blow on December 5th, 2008 at 9:47 am
From plants to parks. From dealerships to driveways. From gas stations to grocery stores. What happens in the automotive industry affects each and every one of us. In fact, the collapse of the U.S.-based auto industry wouldn’t just impact the nearly 355,000 Americans directly employed by the Big Three. One out of every 10 people in America is employed in a service that is related to the U.S. auto industry. If a plant closes, so does its suppliers, the local stores, the hot dog vendors, and the local restaurants.
The effect would be devastating in ways of which you never have thought:
Nearly 3 million jobs would be lost in the first year alone – with another 2.5 million to follow over the next two years
Personal income in the United States would drop by more than $150.7 billion in the first year
The cost to local, state, and federal governments could reach $156.4 billion over three years in lost taxes, and unemployment and health care assistance
Domestic automobile production would more than likely fall to zero – even by international producers, due to supplier bankruptcies
By Clapping Fetus on December 5th, 2008 at 10:16 am
What do you think the odds are that the big three will close plants and lay off workers if they get this bailout? I’d say something in the order of 100%.
By We dont have the money for a bailout on December 5th, 2008 at 3:41 pm
Where is this money coming from to bail them out?
We do not have it -we are broke- the largest debtor nation in history.
Over 60% of the people in the USA do not support this bailout- but that does not matter .
There will no shortage of cars to buy if they all 3 go under.
I saw one interesting idea that Congress could do – go out and buy all the big 3 inventory on the lots today and give it away to the poor people- the unemployed- it will be less than the 34 billion and we would actually have purchased something with our billions . It is not brilliant – but a helluva lot smarter than flushing the money down the toilet with a bailout that will only last the losers a few more months.
What Cpongress wants to do is the Russian model from a few years back- similar to what Venezuela has done- they called it nationalizing their industry – we call it bailouts.
What a crying shame watching Bush and friends in a few short years turn our once great country into a socialist state.
By Draven on December 5th, 2008 at 10:18 pm
I repeat: So much hyperbole, so little understanding.
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