auto bailout madness

Let's see if I understand this auto bailout mess. . . build inferior cars out of touch with global energy trends via inefficient processes, lose tons of money, cut tens of thousands of jobs, and then beg for the tax payers to save you with billions in aid?

If a church does its work terribly, loses members, cuts employees, and so on, it closes, sad as that may be for employees and others committed to that church.  I realize that lots of jobs are at stake, but when the headline is "GM cuts 47,000 jobs" AND are asking for billions more in government aid I start to wonder whose eyes the wool is being pulled over. 

Perhaps someone can help me understand why I should support this but for now, it seems like madness. Especially given their unwillingness to change their habits over the years.  Case in point:  The Detroit auto lobby in Washington, according to some senators I heard speak at Yale, were the sole force keeping significant climate change legislation from passing congress over decades!
peace,
Chris

Comments

[Jon]

It seems like a pride thing to me. "We can't let the all powerful US auto industry fail! We invented the car!" But I guess that's when the innovation stopped and the world took over.

I haven't had an American car since I was 19. Well, that's not true. I've had Hondas, and they're mostly built in the US anyway.

I think, like any other business in the US, when they are unable to be relevant to the consumer, they are forced to close, and more relevant and innovative companies are created and take over. Isn't that the capitalist way anyway?

Thanks for the rant. I like reading your rants.

[Mary Hess]

You're not the only one asking such questions! Check out this car blog (http://www.hybridcarblog.com/2009/02/automaker-viability-holy-sht.html).

[Will Scharen]

I'm not the one to convince you otherwise; I've been against the auto bailout since I first heard of it. The auto companies have a lot to change if they are to survive, and why not do it under chapter 11? As you say, many of the jobs are lost already. A convincing argument from the Economist last November: http://www.economist.com/business/displaystory.cfm?story_id=12601839
A friend and former mechanic once told me he could hold a transmission from a Honda in one hand at arm's length while the same part from an American car was so heavy it needed a special jack to hoist it into position. An interesting illustration of how far the American companies have to go. I could rant more, but it's not my blog. :)