The auto industry is essential to this country both in the short term and in the long term. We need to revive manufacturing. This economic catastrophe clearly demonstrates the weakness of a service economy or as some call it a consumer driven economy.
Maybe so, but, the airlines and other industries have had to go bankrupt and reorganize. Why should the auto industry be any different? It’s not like they will vanish. The will vanish in their current form, which is not a bad thing, IMHO.
If you goal is truly to save the Auto industry bankruptcy can not work. The airlines continue to sell tickets while in bankruptcy-certainly fairly cheap tickets. The auto industry can not sell $500.00 cars.
Also, you need parts to stay in business. Parts manufacturers have already signaled unless a deal is reached, they will not send the parts. The plants shut down and liquidation begins.
There is no way in the current financial situation, GM could get debtor financing-won’t happen. The banks are not lending to healthy companies much less bankrupt companies. Nope-we have a loan or the big three go away in a matter of days and weeks most likely.