I am totally opposed to the current government bailout of U.S. automakers. I’m against it because the government is not forcing these manufacturers to make any meaningful changes. A lot of the media coverage centers around the labor costs, design, and even healthcare issues but not enough attention is being placed on the real problem. The real problem is that U.S. automakers are asking customers to make a very bad choice. The problem stems from decades of mismanagement around business and marketing strategy – or lack of it. Bean counters and financial types have run U.S. automakers into the ground. Now, we’re hoping that bean counters will rescue the automakers?
They say “if GM fails, the economy will go down with it.” Really? I don’t buy it for a second. I’d only believe the argument if there was a persuasive case made for how the current bailout will ensure that GM won’t fail in the future. But, I haven’t heard any compelling argument other than some sweeping generalizations loaded with threats of doom. I have a feeling that we’re head down the road of government subsidizing the U.S. auto industry or prolonging the inevitable Chapter 11 anyway. If it’s Chapter 11, we’re basically burning money. If it’s subsidized, I can’t envision a future where the companies are incented to become competitive – so, money is being wasted in this scenario, as well.