Assistance to the US Car Industry? Yeah or Ney and reasons

[Ron Wright]

This week Congress will take up some form of financial assistance for the Detroit 3.

Your thoughts:
- if Yeah - what are the caveats
- if Ney - what are the alternatives

[tyler sims]

Ney--Need to go through ch 11, remove all past leaders, and put in place people that will deliver on next generation solution. If the failures aren't marked as failures how can the future leaders rise up. Second those that have solutions in place like AFStrinity, Ricardo, Volvo recharge, Volt, EV chrysler, should be given temporary tax breaks for the full development as well as seed partnership money to launch or establish retrofits to the closing factories, etc to launch all these groups technology with these new Ford like leaders.

Sweep out the old and bring in the new...

[LauraS]

I'm thinking no, because the U.S. auto industry is systemically designed to fail. A bailout to the companies is really a bailout to the unions. I think that we should let them fail, be sold off, bought by employees, whatever. Then whatever springs up in the void should be free of debilitating labor contracts and haughty inefficiency born out of a lack of consequences.

[Mark Goldberg]

I'm of a mixed mind on this. Bailing out these companies sets a terrible precent of rewarding those who mismanage their companies. It is also a bailout of the UAW, which is well-heeled and certainly not deserving of a bailout.

But a collapse of the domestic auto industry could have bad repurcussions from a security standpoint, as this industry is essential in wartime.