Chapter 11 worked for the airlines and will work for the auto industry. Especially by allowing re-structure of union contracts.
I think having a domestic auto industry is important to this country...not surprising.
It's important primarily for defense purposes. But if I had my choice on how to spend the total of $10 billion of taxpayer 'donations', my vote is to start up a new company in a lower labor cost, right-to-work state (non-union) that can compete globally.
The other thing is to get rid of government regulations such as CAFE standards. If the Execs at the auto manufacturers had any vision, let alone courage, they would have demanded that as part of the deal, otherwise they would choose Chapter 11 or maybe sell to foreign investor.
I would love to play poker against any of those 3 metrosexual CEOs.
Listen, I don’t think bankruptcy will work. Look at Adelphi...a GM bankruptcy would be far worse. I believe it would end in chapter 7. A plane ticket cost much less than a car, and you don’t need a warranty.
You have no idea how much it would cost to set up a new car industry...better to keep the one we have and make it work. Cafe is ridiculous and always was. As for the unions...honestly except for work rules which I believe will be changed soon, they have given on every wage and benefit issue to the point the rank and file resents the unions because they can get them nothing of value. Legacy must be addressed...this is a really tough issue. I believe it can be done and we can save this industry-it may very well lead us out of this economic downturn. GMAC becoming a bank and lending to people with middle of the road credit is huge. It will generate spending.