US Car Industry Bail-out Fails

So the bail-out plans for the American car industry didn’t get through Congress? Well in the long-term that’s probably a good thing because it means that we could see a real change in the car industry world-wide.

In the short-term it’s probably a good thing too because it really did look as though Congress wanted to tip a whole pile of money down a bottomless pit and it would have had little effect on the ability of the Big 3 manufacturers to survive.

Ford really didn’t want the money on the terms that the Government wanted to impose. Ford is already cashed up and is working hard to actually build cars that people want to buy. The number of hybrids that are currently in production or on the drawing boards is a credit to the company and will benefit the environment and the consumer.

General Motors … well they wanted more money for themselves than what Congress was prepared to give all three manufacturers. Sure they have some great hybrids on the market and even have a full electric car coming down the line but there’s something fundamentally wrong with a company of that size that finds itself in the mess that it’s in and we’re probably better off without it.

I’ve seen reports that GM is already working with its lawyers to arrange Chapter 11 Bankruptcy protection but you have to wonder just how long they have left.

Chrysler … now here’s a company that just has to be totally clueless and shows it. They’re in a financial mess and plan to close a whole bunch of plants in the next few months … which is a good thing. They also have two hybrids about to hit the market place … but both aren’t in models that sell in big numbers and that’s probably just as well.

You see, among the plants that Chrysler plans to close are the ones that produce those two hybrids so no sooner will they go on sale than the plants will close and the hybrids will go out of production leaving Chrysler with no hybrids on showroom floors and none that are even close to production.

How could a company like Chrysler be so out of touch with reality?

I guess that all along I was wondering why anyone in their right mind would want to spend $14 billion dollars to prop up some companies that were totally out of touch with everything that’s going on around them.

I’m sure someone will pull a rabbit out of the hat and the deal will be back on but I really can’t see that as being good for anyone because it’s simply perpetuating a failed business model and the current mess will only resurface a few years down the track.

US Car Industry Bail-out Fails
Scroll to top