Too bad you can’t beat them without a bailout. Too bad it took the Detroit 3 decades to learn they actually needed to make products that don’t suck. Too bad they repeatedly bet the farm on gas hogs only to see gas prices go up and not have the vehicles people wanted.
The fact is the Detroit 3 screwed their own pooch, long, hard and repeatedly, they earned their bad reputation the old fashioned way, and this bailout is one of the biggest mistakes in the history of government.
There were mistakes no doubt...but trade and benefit problems hurt the big three...you know Japan has national health care and offers government pensions? The transplant health care is subsidized by Japan. This has to be fixed one way or the other.
Again, it’s a loan not a bail out...it’s not like the money dumped down the sewers of AIG or Citi who may still fail. As for gas hogs, do you know which products are selling the best in all of GM? SUV’s. Texas, will probably be on overtime after the shutdown. When gas is cheap, Americans buy big. It seems one should consider the market it any business.
As for betting the farm on gas hogs. Have you watched any news reports about the Auto show? The new show cars are electric or hybrids. These take years to develop so it’s not like they decided to make these cars in November and poof here they are. They got caught in the economic tsunami. There are good products in the pipeline. However, if gas remains cheap Americans will buy big because they like big. We will making the Cruze in my plant...great mid sized car which gets really good gas mileage. It’s a pretty car and should sell well.
As for the reputation. GM messed up in the 70’s for sure. However, this was thirty years ago. Toyota who should know better is messing up big time right now. I would consider this before buying a car. As for the biggest mistake, the LOAN saved between 3-5 million jobs and perhaps saved us from a depression so I disagree. It has to be paid back and was a mere drop in the bucket when one considers the financial bailout. I believe the auto industry is important to this country in terms of national security and prosperity. If I was fired tomorrow (which could happen), I would still believe this. The service economy sucks and always will, we need manufacturing in this country.