Auto Non-Industry

I just sent this to President Obama (or rather, of course, whichever staffer gets to read these things):

Regarding the auto-industry bail out.

As a long-time General Motors stockholder, I would like to say PLEASE STOP. General Motors are Chrysler are bankrupt. Chrysler will never be a viable business on its own. General Motors might be, but it will take years and hundreds of billions of dollars of taxpayer (MY) money to get them to that point…if it ever happens, which is improbable.

The arguments based on jobs don’t work. Workers will have to be laid off anyway as the companies scale back. The arguments based on patriotism don’t work. A Honda built in the US is a more significant part of the US auto industry than a Chevy built in Mexico.

Ford MAY be viable, if they can survive their huge debt load long enough to get the products in the pipeline into the hands of consumers. They’ve done many of the right things, and have good products. They just need some time.

It is time to perform triage. If there must be an auto industry bail out, the limited resources available should be put into a company that has at least a chance of surviving without infinite taxpayer support.

Abandon Chrysler. There is no hope there, and never will be.

If you MUST bail out GM, do so through a structured bankruptcy. Simply giving them a blank check without forcing any change will simply led to more blank checks to a non-viable company.

Put most of the resources behind Ford, if they need it. The money there might do some good.

The American taxpayer is tired of opening his wallet to bail out incompetent companies who just happen to be short on brains and long on lobbyists. Stop the madness.

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