We are ALL however our worst enemies. The Press have been pounding us with bad news for maybe 4>6 months and the more bad news there is the more persuaded we all are to change our buying habits. As pointed out on a programme I was listening to the other day, the vast majority of people have NOT seen anything to effect them yet – so try and watch less TV and read less newspapers – we would all be happier!

Having said all that the fact is we are in a ‘crunch’ situation. IF a company is needing state support then the current managers at the least should falll on their swords. Happened to one or two bankers here but not enough!

What do you do with a company that produces something no one wants, would take years to turn the corner but would cost an arm and a leg if allowed to fail, also?

I think on balance that the big 3 should be allowed funding BUT selective lines should be closed down and they should be managed downwards to a smaller base. Other parts should be sold off and whatever is left should be managed (properly) until self sufficient.

Jeesh – who would like to make the call?!

ford should not die. they did a great job on the mondeo and to be honest they have on most of their other cars. we have had loads of them and all have been really good. i wonder if that money they put away would be enough..

This may be the best long term outcome for GM, as the labor contracts it’s given the UAW have been a weight around it’s neck for years (google “UAW Job Bank” for an example). The UAW has been bending the big three over and now it is coming back to haunt them. Some of the most vocal proponents for the bailout have come from the union leadership, who have been completely unwilling to give an inch, even if it means the destruction of Detriot as we know it. To top this, the UAW was a major campaign contributor to Pres. Elect Obama, who had consistently been pro-union. Combine this with his more socialist / anti-free market views, and I would expect a bailout, even though I personally don’t feel it is right

Democratic Senate leadership has also mentioned regulating how the potential bailout money may be used. I don’t know what is more anti-free market, giving a bailout in the first place, or government telling a public company how to use it’s revenue. One of the things mentioned is more “green” products from Detroit. I’m all for saving the environment, but if these technologies aren’t profitable for the auto makers, these regulations will ensure that we will revisit this whole problem in a couple of years. Instead of a bunch of truck and SUV that Detroit can’t sell, they will have dug their grave with hybrids.

While I agree that top leadership has been incompetent, they gave the American public what that wanted (trucks & SUVs), while conveniently making a hansom profit for their shareholders. As was mentioned in prior posts, it was a “get while the gettin’s good” attitude. Maybe they should have seen the writing on the wall, but that can be said for a great many financial disasters over the past few years (tech and housing bubble’s for example).

Bottom line, Detroit’s leadership knew the UAW’s hand was in their pocket the whole time and didn’t care. They both should be ashamed of themselves. They both suck.