On one hand I know a whole lot of people will lose their jobs, which is not a good thing. It's easy to spread all the blame around to industry execs, unions, parts suppliers, weak designs, abysmal brand management and marketing, etc. Etc. Etc. They all deserve it. But that's kind of cold. I've lost jobs and it really sucks.

On the other hand, having some companies go away is not necessarily a bad thing, but there needs to be programs in place to help cover the butts of the employees who lose their jobs: retraining in other industries, such as energy, fr example. It's gonna be expensive no matter how you slice and dice it. As for the pensions, numerous companies have dialed back their retiree pension and health benefits over the past decade or so. Seems like the automakers can do the same. It's no fun, but it beats not having the benefits at all.

Bigger view, the thing is, the entire automotive business model has to be ripped up, thrown away and rewritten. The GM bailout plan as it sits still doesn't do all it needs to do, and nothing I've seen addresses the bigger issues of credit with which to buy cars, and the fact that there is tremendous manufacturing overcapacity. The industry worldwide can produce far more than can possibly be sold, and IMHO demand in the U.S. is going to stay in the 10-13 million range for at least 5 years. I think the age of trading every 3 years is gone for good (thankfully). People who are now keeping their cars instead of trading are going to discover the joy of no payments and that repairs to a good car are lots less expensive than getting a new ride. This will change the business model for whatever car companies survive, and it's a change that is long overdue.

Last thought. Chrysler, a privately held company, trying to ink a deal with Fiat, shouldn't get a dime.

• What if the autos go bankrupt?, steve, Sun, 22 Feb 2009 11:32:52
  • I vascillate on this all the time., Noel, Sun, 22 Feb 2009 16:26:17 <-- Viewing This Message
  • Re: What if the autos go bankrupt?, supryze, Sun, 22 Feb 2009 14:48:06
  • Bankruptcy's inevitable, pony, Sun, 22 Feb 2009 14:23:50
  • Trickle down companies, patm, Sun, 22 Feb 2009 13:08:09
    • You have a lot of confidence in management's ability, PT, Sun, 22 Feb 2009 16:05:53
      • Not really. n/m, patm, Mon, 23 Feb 2009 04:47:16

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