Just to make things clear on my stance. I've been off all day and watching these auto people beg for money.
"If we don't act now, our *enitre* economy will fail" is what one exec on CBC said.
False is my answer to that statement. Oh and I want these big 3 to declare bankruptcy as well if they really can't hack it. The auto industry does not deserve to be bailed out. If the industry is so bad, why is Honda doing so well? This is a business problem. Not a taxpayer-please-bail-me-out-problem.
Posted by boredottawa at November 21, 2008 03:06 PMI agree, it seems like these guys didn't anticipate market demand and made terrible quality vehicles. What good is a cool car if it breaks down more often than a Honda Civic? Reliability and quality were my top criteria when I was car shopping. What good is a 5 year warranty if the car is always in the shop getting fixed (for free, but nonetheless)?
They also represent a huge portion of the US and Canadian economies. Not just themselves but all of the companies down the line that supply them. This in itself is part of the problem they created... but it also means we can't just let market forces bring these guys down. It will leave too many debts unpaid, too many unemployed.
Clearly they need help but they don't need a blank cheque with no accountability. They will need to restructure, drastically and quickly, and the government should help them do it with *some* loans and perhaps some exceptions from regular bankruptcy laws that will protect creditors down the line from the auto giants. If the Big 3 go into regular bankruptcy, their creditors and unions (regular people) could get really screwed, and that doesn't help the economy either.
Canada made a deal with the US auto companies a long time ago. Several Canadian auto companies tried and failed to compete. I *still* think it would be better if the Canadian government sunk money into a green, winter-friendly domestic automaker ... but would anyone buy the cars?
Charlie Rose on PBS had a whole show on this issue with good debates on both sides, you should check it out.
Posted by: Ryan at November 21, 2008 05:15 PMI don't know a lot about cars but isn't the problem, to some degree, the fact that the American auto industry has been having problems competing in the global market b/c other countries are simply more efficient? To me, that seems like the main problem that should be addressed. They should be looking at why the other companies do better and pull out aspects from those models and apply it to their companies. Layoffs and closures obviously haven't worked as a viable tactic.
I would buy a green,domestic winter-friendly car if it existed. More importantly, if the price reflected the quality rather than the novelty of it. I haven't checked lately, but I don't think the tax breaks you get for buying a green or hybrid car are enough to balance the actual cost of the car, even if I had oodles of money sitting around. I can't think of a company who makes one, or would make one.
Posted by: nuke at November 21, 2008 08:44 PMExcellent points Ryan and Nuke. Btw, I watching the news and some Senators asked some really good questions/points to these execs that they couldn't answer.
a) "Could you not have downgraded...to First Class?" this is about the fact that all 3 of them took separate private jets!! I mean, at least car..err..jetpool or something.
b) "Raise your hand if you are willing to sell your private jet in order to help with the bailout." - Nobody raised their hand.
These guys want their salary and perks to remain the same while they get a 25B dollar loan. Greedy, Greedy, Greedy, Greedy.
Posted by: roy at November 24, 2008 09:37 AM