Let The Big 3 Automakers Fail
Gosh, these bailouts seem pretty common now huh? Here’s why we should let the greedy, poorly managed automakers fail:
1. A clean slate- Here’s our chance to let small companies invent some cool cars. Cars that Americans WANT to buy. I see many brands developing to tap into niches. Sure they wont be huge companies but they’ll sell products that people love (think Mini Cooper). I know Mini is owned by BMW but imagine if a bunch of new, fresh companies developed and sold hits like the Mini?
2. They’ll never learn- If we bail these losers out they will just make the same dumb mistakes. They can’t seem to see the forest through the trees.
3. Unions- here’s our big chance to get rid of this god forsaken union. This union is arguably to blame for their failures. They’ve made it almost impossible for Detroit to compete.
4. Lessons- It’s time to let capitalism run its course. The weak must die in order for the strong to survive. Let these brands die.
Sure, sure, I know we’ll be in financial trouble if we let them die. Many people will be out of work. Sometimes you have to take two steps back to move forward.
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December 7th, 2008 at 12:48 pm
I couldn’t agree more! This bailout stuff is getting pathetic.
It reminds me a little bit of the scene from Man For All Seasons, when Thomas More is talking with a friend of his:
“William Roper: So, now you give the Devil the benefit of law!
Sir Thomas More: Yes! What would you do? Cut a great road through the law to get after the Devil?
William Roper: Yes, I’d cut down every law in England to do that!
Sir Thomas More: Oh? And when the last law was down, and the Devil turned ’round on you, where would you hide, Roper, the laws all being flat? This country is planted thick with laws, from coast to coast, Man’s laws, not God’s! And if you cut them down, and you’re just the man to do it, do you really think you could stand upright in the winds that would blow then? Yes, I’d give the Devil benefit of law, for my own safety’s sake! ”
These automakers want to bring the government into their business, but do they not know that it is nearly impossible to get government out of business once it has a foothold? They’d ignore all the principles of capitalism that made them successful once, but if they do they’ll have nowhere to turn when they want to run their own businesses again.
Let them fail. If they haven’t managed themselves wisely, they deserve to fail. Having these companies around another couple of years is NOT worth the price of increased socialism.
December 7th, 2008 at 10:25 pm
I think the first point is a product of the media. Just saw these stats…
GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of nearly 700,000 so far this year.
Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.
Check out http://tinyurl.com/68e3ea (I think the last point in that article is BS though)
I think the US automakers have been making great cars people DO want for years, but people refuse to believe that fact.
I am by NO means excusing other missteps - I think your 3rd point is DEAD-ON. I don’t remember where I read this, but the Big 3 have to spend almost $1000 extra for each car because of benefits, etc. from the unions. That is where the problem lies, they are unable to compete effectively with the foreign manufacturers - not because their cars are bad or they’re not building what people want. It’s their cost structure forced on them by the UAW.
If they could break that hold, I think the Big 3 could begin to compete more effectively again. But if the cost structure doesn’t change, no help from Congress will change the eventual outcome.
BTW, I’ve owned Ford vehicles for the past 8 years - would put up their quality against any of the foreign made stuff.
December 8th, 2008 at 1:32 pm
I am torn. I feel the same way sometimes. These big automakers do not get it at all. However, the number of people that would be out of work bothers me also. The Auto makers are clearly getting the best deal. The average Entrepreneur who miss manages would be out of luck and in bankruptcy.
Dr. Wright
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December 9th, 2008 at 2:20 am
I’m torn as well. It’s definitely the Big 3’s fault, yet they’ve put America in a weird position. We shouldn’t have to bail them out, but it still may be in our best interest to do it just to save Detroit’s economy, and all those that are employed by the big 3.
Well see what happens I guess. Maybe Obama will be able to jump start our economy somehow. All we can do now is hope.
December 21st, 2008 at 1:44 pm
Please look at the facts before you engage us with your wisdom. GM outsells Toyota in the US and 20 of the 22 major markets around the world. (surprise, Toyota leads in Japan).
Your perception of GM is about 20 years off reality. You may not like the Malibu but it did win the NA car of the year in 2008 as voted by auto writers. Cadillac CTS won Motortrend’s car of the year in 2008. In 2007, the Saturn Aura and Chevy Silverado won the car and truck of the year awards by the same auto journalists.
By mid-2009, GM will have 9 hybrid models in the market?more than any other automaker. BTW, I read that the Cadillac Escalade hybrid gets better fuel economy than the Mini.
No one produces a Mini-like vehicle so your logic about not producing what people want also applies to Toyota, Honda et al .
It shouldn’t be a surprise to you that all auto OEM’s are suffering. Annual US sales have dropped from 17 million to 10.7 million almost over night due to the housing bubble led credit crisis. I agree with you that GM brands have lost their way in the last decade but nothing like a bankruptcy to focus one’s attention. GM is in the midst of restructuring to a 12 million level. At that level, they will be profitable and if sales levels return to a more normal 14-15 million units, there will be enough profits to pay off the loans and then some.
December 21st, 2008 at 10:33 pm
Morris, how can my perception be off? It is what it is.
Like millions of other Americans who are tired of bailing out companies I too would like all these poorly managed companies to fail. But alas they live to fight another day. Now that they have their bailout money look for the unions to try and grab some of it.
January 23rd, 2009 at 12:31 am
It’s not fair to say the Big 3 aren’t making cars people want. The current crisis is all out of wall street. Before the fall, and high gas prices SUVs and trucks were selling like wild fire. Sales are off not because of bad design, business practices and unions, but because of the credit crunch, people can’t get car loans.
One Detroit car dealer says they turn people away every day because they can’t get loans.
Toyota, Honda and others are ALSO not selling as well and I don’t see anyone criticizing them and their expertise.
For the record: I drive a Honda