Readers react to auto bailout
Readers from Los Angeles to New York, from Canada to Australia, were irate, chagrined, understanding and perplexed by the efforts of Detroit’s three big automakers to obtain federal funds to shore up their faltering operations.
But most of all, they want to see change -- even if it takes federal money to make that happen. And they have some ideas to go along with proposals in Congress, where lawmakers are expected to consider a rescue plan this week.
Dozens of comments hit our e-mail box, bizletters@latimes.com, in response to numerous stories about the bailout efforts, especially “Bailout door still open for automakers,” published Nov. 21.
Here’s a sampling:
To keep a company alive simply to protect the jobs of the automakers and their suppliers makes no sense if there is no demand for their products.
We need to see a credible business plan to build cars that people want. This also requires trade unions that commit themselves to automation, productivity and quality rather than strikes for more pay.
Michael Strong
Corona del Mar
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One of the arguments for the proposed auto manufacturers’ bailout is that a bankruptcy would be devastating to public confidence. On the other hand, a bankruptcy would force the manufacturers -- and their financing banks, unions and general creditors -- to come to terms with a restructuring they urgently require.
So let me propose a reorganization without going to court. Appoint for each company an out-of-court creditors committee that would write, along with each company, a tough-minded reorganization plan -- the same sort of thing needed to exit Chapter 11.
Congress would then enact each plan and fund each with a secured loan that takes precedence over other secured loans.
Michael T. Hertz
Sechelt, Canada
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The rap on the Big Three automakers is that they brought the problem on themselves, so they don’t deserve a taxpayer bailout.
Curiously, however, the financial industry also brought a problem on themselves and they got a $700-billion bailout. In fact, the disappearance of credit that the financial industry caused is a big part of the problems automakers face.
The bankruptcy solution that many politicians are offering is nothing but a code word to scuttle union contracts and retirement benefits.
Bill Shaw
Austin, Texas
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Two words accurately describe unequivocal prosperity: full employment. Without a healthy automobile industry, America has little chance of coming even close to that goal.
Arnold Laven
Encino
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Let the Big Three fail. Does anyone really believe that America won’t make cars anymore if these companies are allowed to fail? Isn’t it the American way for poorly managed businesses to fail, allowing new ones to take their place?
Another company should be allowed to take over these companies and restructure them. The car business will not disappear if these companies are allowed their natural death.
Chris Bailey
Valencia
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I think Congress gets it at last by asking the automakers to provide detailed plans for using the money to assure their long-term viability without more handouts.
We have seen, time and again, Congress doling out unimaginably large sums without asking for any accountability from the recipient.
Warren Kourt
Los Angeles
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With cars lasting longer and the economy in a recession, is there enough of a market to keep all three of the automakers in business? Maybe we should let them start to fold and give a few billion dollars to the last one standing.
I just don’t see where we can afford to pay Detroit to make cars that no one is going to buy.
Marc Perkel
San Bruno, Calif.
