Thursday, February 26, 2009

USA Auto Industry

General Motors is posting losses in the billions for the fourth quarter of 2008 and doubt if they will be able to continue without more loans from the USA and Canada. Chrysler and Ford are having their own problems and the question is what is going to happen to American car companies.

Thousands of jobs are at stake, and the lives of those dependent on those workers in one form or another are also at stake. Yet, how much tax payer money should be given to an industry that refuses to adapt, is poorly managed and clearly has no vision of the future?

Is the best thing to stop the loans, force the companies to declare bankruptcy and begin again? Maybe under a new structure, with new contracts between the industry and unions things could actually work out for the best?

Free enterprise means that you have to compete and if you are going to be the winner, you have to have the best ideas, be the most creative and offer the best product. The American car industry has failed in this regard.

Bankruptcy just might be the way to inspire them to approach the business from a new point of view.

I say no more loans. If they cannot adapt and survive on their own, then things will just have to continue in a new direction.

Survival of the fittest.

Its Common Sense!

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