Been a very long time since I've posted here...Anyhow, no the US/Canadian Auto Industry should not be allowed to fail. It is a strategic industry just as the aviation, computer, chemical etc industries are.
Rick, I agree with you. Nice to hear back from you. Too long a stretch not hearing from you.
Paul
I don't think we should let the entire US auto industry fail, as it has been in important industry for us in absolute terms and in terms of national defense. But there might be parts of the US auto industry that should not be bailed out. For example, I would let fail any company that would just take a bail out, ship that money to Mexico to build cars in Mexico with Mexican workers, and then export those cars back to the U.S. for sale. Also, there is much to what Stanley suggested about "creative destruction." Some companies need to experience the stress of bankruptcy to shed deadwood, build a product people want to buy, and compete reasonably with other companies.
Tim
Some companies need to experience the stress of bankruptcy to shed deadwood, build a product people want to buy, and compete reasonably with other companies.
By Gawd - Tim - It sounds almost like you are advocating ....CAPITALISM! Now what would happen if GM and Chrysler fail? I donno - what happend when the Stanley Steamer failed, or Henry J, or Studebaker, or Nash or the Marysville Wagon Company?
Hi Jerry,
Jerry: "By Gawd - Tim - It sounds almost like you are advocating ....CAPITALISM"
Yes. Sometimes I feel very old fashioned and even stodgy. Are any aircraft companies suffering today? I know many have gone belly-up over the years, but I don't currently hear of Boeing having problems. The one that always seems to be in trouble is that socialist turd-sucker Airbus.
Many of the companies producing smaller aircraft are cutting back on production and laying off workers, but so far none of the prominent ones are crying bankruptcy. Many of the outfits producing corporate jets took a hit when the govt went after the car companies for flying corporate jets to Washington to ask for hand outs. Scared off a number of pending purchases of upgraded corporate airplanes.
Jerry,
""Should we let the US Auto industry fail?""
Do you mean that GM and Chrysler have not already failed when 90% of both companies have been taken over by a combination of the government and the UAW? The government controls 50% of GM and the UAW has 55% of Chrysler. In both instances the stockholders have what, 10% to 12% ?
The "we" in the question is a misnomer, unless it refers to "the WE who we have been waiting for" who dictates company leadership, with whom companies must merge, and what type of vehicle he decides that we all want to drive. But, then our values no longer apply. Just ask Chuck Shumer.
Bill
Jerry: "Many of the companies producing smaller aircraft are cutting back on production and laying off workers, but so far none of the prominent ones are crying bankruptcy. Many of the outfits producing corporate jets took a hit when the govt went after the car companies for flying corporate jets to Washington to ask for hand outs. Scared off a number of pending purchases of upgraded corporate airplanes."
What will the beautiful people do without their private jets! I suppose one good result of this development will be that fewer rock stars will die in crashes.
What damage, if any, might be done to our defense industry if GM and other U.S. auto makers fail, and in so doing bring down the many companies in orbit around them? Is it likely our defense plants can be spun off and operate separately without the mother ship? Or will our defense needs simply have to be out-source to China and Japan? Since the Korean War, Japan already has supplied some of our defense need -- e.g., $8 billion on "special procurements" during the Korean War (some 60% of all Japanese exports in 1952), 92% of all napalm used by U.S. forces in Vietnam, and critical jet fighter parts today.
Today word comes that "His Majesty" has informed Chrysler of how much they can spend for advertisement. Talk about a micro managing m - - - er f - - - er. Wonder if it will require his personal approval if I reach 80 and my first hip replacement needs to be redone.
Can anyone say Meglomanical Narcissist ?
Today word comes that "His Majesty" has informed Chrysler of how much they can spend for advertisement.
And given the history of beauracratic longevity, it will take years to undo this BS once The Great One is booted out of office....;o(
What damage, if any, might be done to our defense industry if GM and other U.S. auto makers fail, and in so doing bring down the many companies in orbit around them? Is it likely our defense plants can be spun off and operate separately without the mother ship?
""And given the history of beauracratict longevity, it will take years to undo this BS once the Great One is booted out of office.....""
I would say there might be a chance if there were a therough house cleaning, and that is HOUSE cleaning, as well. The cleaning will depend upon whether the people still buy the media line that Bush is responsible for all ills and remain enamored with the image portrayed on the curtain..
That being said, I must confess I have reservations even if the GOP can take control. Something seems to happen to people when they arrive in Washington. I thought we had something going in '94 with Newt, but the party lost its backbone......If they even have one anymore.
Today word comes that Chrysler is closing 789 dealerships across the country.
Sounds like stimulus to me.
Joh,
I don't see how an associated service garage, if you mean the ones located at the dealership, can remain open if the dealership closes. One of the major considerations has to be the cost of the real estate occupied by the dealership. I seriously doubt that a garage could cover that.
This also brings up another question. What will be the impact on availability of parts for Chrysler products? A Dodge is also a Chrysler product and there are a lot of Dodge trucks on the market. How will this effect Dodge? It would seem it has to.
Chrysler and the people employed by Chrysler are definetly effected but this will also have an effect on other automotive businesses which provide or manufacture parts.
Talk about trickle-down economics. This is trickle-down ............. well, you know, the stuff that's always said to run downhill.
Dearest Jerry ,
The auto business is a private enterprise not a national treasure , just another business thats going boom , they have been putting out over priced crap for years , my sympathy go's with the buyers who make 60 month payments on a auto that last for 30 months .
JM
