Time for 'BIG 3' to act BIG!
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We should let General Motors go bankrupt. Ford and Chrysler as well, if it comes to that.
Yes, we've heard all the arguments about how many jobs are at stake, both at the Detroit Three and its many suppliers. Also, how this may adversely affect millions of retirees. If you dissect this issue with your heart, it's hard to not give GM and the other two Detroit manufacturers billions of dollars so they can continue doing business as usual. And they will continue doing business as usual, which is why this mess should end up in bankruptcy court, not with wheelbarrows of taxpayer cash flowing out of the U.S. Treasury. In short, billions now to GM will not cure the illness, and if the money is forked over it likely won't be the last time Detroit will come calling for a handout.
Only the forced reorganization of Chapter 11 bankruptcy could finally force these manufacturers, especially GM, to recognize that the 1960s aren't coming back. There's no way GM or Ford will close their doors with a Chapter 7 going-out-of business sale, though that fate should not be ruled out at the much weaker Chrysler.
With Chapter 11 bankruptcy, GM will still be able to produce cars while finally facing up to some hard decisions -- like closing or selling at least three of its divisions, negotiating even tougher but fair contracts with the United Auto Workers, trimming its healthcare and retirement costs, as well as bringing supplier costs more in line with what its competitors pay.
Bankruptcy could also help clean out the executive suite and replace those 30-year GM veterans at the top with people who won't be saddled with a craving for better times that aren't coming back.
Yes, we've heard all the arguments about how many jobs are at stake, both at the Detroit Three and its many suppliers. Also, how this may adversely affect millions of retirees. If you dissect this issue with your heart, it's hard to not give GM and the other two Detroit manufacturers billions of dollars so they can continue doing business as usual. And they will continue doing business as usual, which is why this mess should end up in bankruptcy court, not with wheelbarrows of taxpayer cash flowing out of the U.S. Treasury. In short, billions now to GM will not cure the illness, and if the money is forked over it likely won't be the last time Detroit will come calling for a handout.
Only the forced reorganization of Chapter 11 bankruptcy could finally force these manufacturers, especially GM, to recognize that the 1960s aren't coming back. There's no way GM or Ford will close their doors with a Chapter 7 going-out-of business sale, though that fate should not be ruled out at the much weaker Chrysler.
With Chapter 11 bankruptcy, GM will still be able to produce cars while finally facing up to some hard decisions -- like closing or selling at least three of its divisions, negotiating even tougher but fair contracts with the United Auto Workers, trimming its healthcare and retirement costs, as well as bringing supplier costs more in line with what its competitors pay.
Bankruptcy could also help clean out the executive suite and replace those 30-year GM veterans at the top with people who won't be saddled with a craving for better times that aren't coming back.
