Comments on: Bailout of Autos and other related thoughts

By: GM and Chrysler denied additional long term life support- US automotive industry needs a restructuring | Arohan's investing life

Mon, 30 Mar 2009 21:11:15 +0000

[...] US automotive industry has been dysfunctional for some time and it needs to be simplified and fixed. It is not a question of technology or skills [...]

By: Raj Krishnaswamy

Raj Krishnaswamy — Sat, 17 Jan 2009 13:29:59 +0000

I have obviously discovered this blog post late, but I guess better late than never! Since Nov 2008, the auto bailout is well in place even though it makes no sense as you point out. I supply parts to the auto industry and let me tell you the pricing pressure on us small suppliers is so severe that it burns me to see these unskilled union workers being paid so much and that now that they are in trouble, I need to give them more of my money so they can continue to beat me up on price even more. Sometimes I wonder if it is all even worth the hassle. Thank you — you have written a great article.

By: Lou

Lou — Sat, 03 Jan 2009 12:50:50 +0000

The substance of the article is strong. Why should a common taxpayer be burdened for the loss of a private enterprise – will never have an easy answer. And more so the resultant situation is due to various business decision factors as mentioned in the article i.e. Mexico, Delphi, flexibility, etc. But the enterprises in question are operating in such a large scale that can hardly be ignored. Their activities influence the entire industry and a substantial chunk of population. The bail out necessitated as Fed is attempting to revive all the sectors to bring back the consumer confidence. Since the banking sector received favors from the Fed, so Auto sector do not want left behind.

Lou
http://www.jobsearchdigest.com/pesd

By: DebtFreeDave

DebtFreeDave — Thu, 01 Jan 2009 14:38:03 +0000

Although my dad would be rolling in his grave for me saying it (he was a lifelong Ford worker), the last thing the big 3 needs is a bailout. Bankruptcy would not be the worst thing for the automakers; they then could redo labor contracts and get rid of the unions' stranglehold on them. I understand why the government is bailing out the banks and automakers, as they don't want a bigger recession. However, this is just going to lead to a much larger burst of the financial bubble down the road I'm afraid. DebtFreeDave's last blog post..People Driving Less, Taking Public Transportation

By: Tim Reynolds

Tim Reynolds — Mon, 08 Dec 2008 00:58:18 +0000

Nice post. Thank you for the info. Keep it up.

By: frostygirl

frostygirl — Sun, 07 Dec 2008 11:54:59 +0000

I agree with you they should not have given the bailout! frostygirl's last blog post..ZUMA TRYING TO WIN “RELIGIOUS” VOTERS

By: Shinade

Shinade — Sat, 06 Dec 2008 06:43:48 +0000

I did hear just a little of the hearings held today right before I went to sleep. I do not know what the union leader said or contributed but he was there and I guess the union is willing now to make some concessions. At least I hope so. Shinade's last blog post..PhotoHunt -Breakfast With Santa-

By: rainer

rainer — Tue, 02 Dec 2008 22:13:58 +0000

Hello, these inside information seems plausible to me. They should impose conditions on giving the taxpayer's money., in order to get it back sometime in the future. On the other hand, UK has no automobile industry any more but they do drive cars. Maybe the american consument and the environment would benefit from a change by getting cars, with better quality, less fuel consumption and more ecological standards.... rainer's last blog post..The Old Man Part 2 of 2

By: Arohan

Arohan — Tue, 02 Dec 2008 05:23:34 +0000

@PaulsHealthBlog, excellent way of outlining the foolishness in bailing out these companies

@lvs, these are desperate times for these companies and the question is whether they want to do the impossible or just curl up and die.If these companies indeed exist to maximize value for all stakeholders, they should stop pandering to only one stakeholder, their unions. If they don’t than there is no return to a taxpayer investment in a bailout

@Mommie, yep, one year of bailout orgy and our children will end up paying for this for many many years to come. BTW, it is now official that we have been in recession for last one year

@Paul@TechByPC, I have thought about similar things. There is nothing that the government can do to force people to buy Big 3 cars. if they give a tax credit to buy a vehicle, most people will probably go and buy the Toyota or Honda that they were planning to buy anyway. They can not tie tax credits to domestic content in the vehicle as many foreign label cars have as much if not more domestic content in the vehicles as the Big 3 cars. Heck, did you know that Chrysler was planning to import Chinese made Chery cars to US and sell them as Dodge cars. Not components or parts, the whole damn car link. If they do find ways of subsidizing Big 3 cars to the consumers, it will probably end up being a big WTO issue. Besides, it is like asking the government to favor big 3 american jobs over an american job created by Toyota or Honda

@Christmas Budget, things will improve in the new administration in the overall economy, although not because anything that the new government will do. Things will just improve as the market will finish correcting and capitalism will assert itself as primarily a growth engine. The new government though has an excellent opportunity to NOT MEDDLE although I really doubt if they are upto it.

@pam, thanks for the compliment! Running for the office requires a certain thickness of the hide which I do not think I possess yet

@dibatam, welcome and do not forget to subscribe to the feed

By: dibatam

dibatam — Mon, 01 Dec 2008 19:58:56 +0000

just wanna say hello, i’m a blogwalker

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