"Automakers Need Bankruptcy, Not Bailout"~ Andrew M. Grossman
The U.S. auto industry is in dire need of a shakeup. All of the Big Three are beset by plummeting sales and market share, high labor costs, aging fleets, and a surfeit of innovative automobiles in the pipeline. With General Motors, and perhaps Ford after it, facing looming liquidity crises, staying the course is no longer an option.
But rather than face facts, the auto industry is seeking yet another government lifeline: a $25 billion bailout on top of the billions in subsidized loans already approved by lawmakers. While a bailout promises continued stagnation and decline, reorganization is the only chance that automakers have to rebound and survive in the global marketplace. Read it all at The Heritage Foundation.
This is a great article on the subject. Grossman makes the argument and I agree with his thoughts. he points out that
Bankruptcy is not, as some would have it, the end of the road; it is, rather, a new beginning. Under Chapter 11, it affords companies that have hit hard times a fresh start and a chance to reorganize to take better advantage of their assets.
I say let them file! Get their act together and sell a product the people want. Years of horrible leadership with no vision combined with labor costs ($20 to $30 more per hour on labor than their competitors) have killed the big three. A bailout will just extend their failure.