The point sure is being missed!
by
skortchaser
12/03/2008, 12:58 PM #
Yes, the Big 3's costs are too high. Yes, management and labor share the blame for this. Yes, for most of 2008, the fuel efficiency of US-built vehicles was out of step with market demands. But you can address all of these issues and not fix the problem.
The problem is that, for decades, the Big 2* have been intentionally engineering their products to fail prematurely. The idea was to get you back in the showroom sooner. It started with small cars: in order to recoup the cash lost by selling a cheaper vehicle, the bigs figured they could simply sell you a new small car more often. Then they realized that, since big car buyers were older and more brand-loyal, the same strategy would work for larger vehicles. So, since the 1970's at least, we've either put up with unreliable hunks of junk, or - like most Americans at this point - switched to other manufacturers.
This is an almost intractable situation. For the Big 3 to remain viable, they have to (1) immediately begin designing cars to last at least 2x the current target; (2) get these vehicles into showrooms, a 3-to-5-year process; (3) reestablish credibility with the consumer that their vehicles are no longer disposable, which requires actual operating experience and long term results. There is simply no way this all can happen in under ten years. Ask Hyundai.
My conclusion is that these companies, as we know them, must be allowed to fail - with a minimum of taxpayer money wasted in the process. They have dug themselves a hole that no reasonable amount of government largesse can fill. Subsidizing them only penalizes the companies that have done the best job of not screwing the American consumer. Send them to Chapter 11 like any other screwed-up company. Sell off the viable brands - Jeep, Ford trucks, anything else? Let the former workers get jobs at the Toyota and Volkswagen plants that will spring up. And let the management rot in hell.
*Chrysler really falls into a different category. At least their lack of reliability is not intentional.