Why the big three bailout is a BAD idea

Originally Posted by Da Klugs

Nice.

I think we need to help try and save the Auto industry here in the US.

We being:

Consumers - We buy US cars .. because the bailout money should go as a tax credit or rebate check directly to the car buyer for cars sold by the big 3 that are assembled here on the next 10 million cars sold (around 2 years of historical sales). $ 10,000 per car on the first 2,500,000 sold, $ 7,500 per car on the next 2.5, $ 5000 on the next 2.5 and $ 2500 on the last $ 2.5. It's a fifty billion dollars and it goes to whoever buys the damn cars not the workers, executives etc. Direct benefit and 100% bang for the buck guaranteed.

Auto company workers - Everyone takes a % reduction in pay and benefits, workers, retirees, executives etc. Whatever the number is to make them competitive. Say 30%. If they say no friggin way... well then do it your way without any of the rest of our's money. The long term viability depends upon leveling the playing field with the competition. Otherwise this is just the first sip at the public trough.

Banks - Either loan money at reasonable rates to those that are credit worthy to buy cars or we are taking our bailout money back.

Screw buying American...buy QUALITY. Ford and GM make inferior products...period (the CEO's from Ford and GM admitted this the other day). FYI there are other vehicle manufactures in the US besides the big 3 such as Honda, Toyota, Mercedes, Hyundai.

[tchariya]

Other tidbits of info to gleam from the above article...

it takes 2x as many engineers to develop a American badged vehicle vs. non-american vehicle.

It costs more to employ an American laborer than a laborer in other countries (compariing dollars to dollars and extra compensation for benefits).

USA is not known for its efficiency. There are so many levels of management and managed groups that bog down American efficiency.

Originally Posted by tchariya

Other tidbits of info to gleam from the above article...

it takes 2x as many engineers to develop a American badged vehicle vs. non-american vehicle.

It costs more to employ an American laborer than a laborer in other countries (compariing dollars to dollars and extra compensation for benefits).

USA is not known for its efficiency. There are so many levels of management and managed groups that bog down American efficiency.

Don't forget taxes.

Nationalizing the auto companies, and other companies, means bigger deficits -- and those mean less liberty for all of us.

[KidRock]

Move to Michigan then tell me if the bailout is a bad idea.



Signed,


Senior in college

Originally Posted by KidRock

Move to Michigan then tell me if the bailout is a bad idea.



Signed,


Senior in college

Why don't you move out of a state that punishes success (higher taxes)? Michigan is reaping what they have sown. For many years they have elected idiots that have perverted the way that the free market should flow.

[tchariya]

Originally Posted by KidRock

Move to Michigan then tell me if the bailout is a bad idea.



Signed,


Senior in college

At least you can still smoke in most public places up there...like casinos and bars.

[Da Klugs]

Originally Posted by Tombstone

Screw buying American...buy QUALITY. Ford and GM make inferior products...period (the CEO's from Ford and GM admitted this the other day). FYI there are other vehicle manufactures in the US besides the big 3 such as Honda, Toyota, Mercedes, Hyundai.

Cost differential = big part of quality differences. Take the cost differential away, narrow the quality differences.

Originally Posted by Da Klugs

Cost differential = big part of quality differences. Take the cost differential away, narrow the quality differences.

I understand your equation. But the truth of the matter is Toyota and Honda produce the same style/concept cars that Ford and GM do at the same cost to the consumer. That is why they are gaining marketshare.

[Da Klugs]

Originally Posted by Tombstone

I understand your equation. But the truth of the matter is Toyota and Honda produce the same style/concept cars that Ford and GM do at the same cost to the consumer. That is why they are gaining marketshare.

Agreed. Wages are good here. Corporate profits are taxed at 35% and those would be nice to have here as well. No easy answers, mine were based upon the assumption that they are getting the money. As currently proposed, it ends up like the financial bailout, no direct benefits, no real resolution to the underlying problems.