Automakers

We SHOULD sit idly by and watch Chrysler fail. I own a Dodge truck and they are SO dysfunctional that they can't tell me where I can get it serviced across the country. Really. It's like "lending" money to your crazy coke-head Uncle Fred.

John Shuey @ 11:36 AM PDT, Sep 8, 2008

The Government should not bail Detroit out because of bad management and labor-related decisions. Bail-outs of Frannie, Freddie and Bear Stearns passed the potential economic collapse test and warrant bail-outs. It does not matter that the auto industry still supplies 1/7 jobs as they will not change their management styles (though Ford is changing), labor decisions and business models, nor can they build a competitive small car (though the Volt, Cruze and Fiesta may change that). Taxpayers should not cover the bill because Rick Wagoner makes $14,000,000 or Ron Gettelfinger over $120,000.

Geritimes @ 7:18 AM PDT, Sep 8, 2008

The Government does not need to bail them out. when the Warrenty is barely out i know Ford will not help you when something goes wrong. . vechicle should be getting atleast 7 miles moor to a gallion. . as for as insurance goes make the personal pay lot moor for the insurance like most americans do. give them a choice if they want the best make them pay moor. also make the retires pay also. American cars cost to much because of the union. also look where the main parts are made on some ot the cars. Transmission made in Japan, France Mexico. Engin made in Germany, Mexico and other countries also.

dfazio2 @ 11:35 AM PDT, Sep 6, 2008

Just start by fixing the health care cost disadvantage. If a foreign country gave each of their automobile manufactures free steel for each vehicle exported, wouldn't we considered that to be an unfair trade practice that had to be counteracted with offsetting import tariffs? Sure we would. Why health care, that represents even a higher per vehicle cost than steel, should be just be ignored is beyond me; unless I realize that many doing the ignoring derive their income from US taxpayers and, therefore, are oblivious about protecting US competitive capitalism even though it is the mother source of the their taxpayer funded income.

Toma @ 12:43 AM PDT, Sep 6, 2008

It should be pointed out that the Big Three already produce cars that are significantly cheaper than their foreign competitors. And they still can't outsell. Cutting retiree costs further isn't going to make their products any more compelling. The competition doesn't have to pay health care? Yeah right. Those costs are built into those nations tax rates. The Big Three should get on the National Healthcare debate if they really believe that's the issue. Hmmm... nothing but silence.

D Peterka @ 8:48 PM PDT, Sep 5, 2008

Steven Roby is incorrect in assuming there's anything very real that our government can do to help failing American businesses other than simply print money. If Steven is willing to concede that the only solution is to simply manufacture money and thus continue to completely devalue the Dollar, then I am willing to concede that the World Auto Market isn't fair on American companies. The American automakers are big, but they are not worth destroying the system to prop up.

Jeremy @ 5:32 PM PDT, Sep 5, 2008

It would help both the american citizens and relieve some of the costs that are supposedly weighing these companies down. Where's the "pull-yourself-up-by-the-bootstraps" mentality and why aren't conservatives screaming at this? Instead of cutting taxes at the top (non-existent trickle down effect) and bailing out companies, you'd think the right and left could agree on single-payer health care as both a way to subsidize growth (many people can't start business due to health care/many businesses are struggling with its cost) and help citizens lead better lives at the same time!

LindsayH @ 4:18 PM PDT, Sep 5, 2008

"One principle cost is medical care . . . Medical expenditures have spiraled out of any meaningful cost control. German, French, Italian and Japanese vehicle makers are not saddled with any such legacy costs in their home countries." So because in 3 out of the four countries he used as an example, there is state-run or -funded health care, we should bail out the organizations who helped defeat the government-backed health care reforms proposed in the 1940s? Since health care is such a big portion of their spending, maybe should we bail out the companies by creating a single-payer (and hard negotiating) health care system?

LindsayH @ 4:17 PM PDT, Sep 5, 2008

With the US dollar as low as it is, why can't the US makers sell their cars abroad ? Whatever claims are made about currency manipulation are wrong. It's simple: US car manufacturers don't make cars people want. Yes, maybe European manufacturers don't have to pay as much for health care. Guess what ? In Europe, health insurance is mandatory, government subsidized if necessary. So, what do you want ? The employer to offer medical coverage as a benefit to attract good employees, or a *government* mandate ? When are we going to learn that you can't have your cake, and eat it too ? Sorry, Steve, but you're wrong.

francois @ 2:25 PM PDT, Sep 5, 2008

Take into consideration both articles and you get an idea of what happened to the American automotive industry. Comments like those posted by Alan Miller a few posts before mine only reflect popular consumer perception, which is far from the truth in this case. The American auto industry's biggest fight now is poor perception especially in areas near the coast. And companies like GM have no shot at fighting that perception if they maintain their bloated multi-brand structure in such a competitive marketplace.

Ross @ 12:25 PM PDT, Sep 5, 2008

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