Quote:
Originally Posted by Greg700
I would let them go bankrupt...their assets would be restructured and/or purchased by another company which would produce a better product at a better price and would be able to profit from doing so. I don't support bailing out any industry that has ceased to be competitive.
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I agree in principle. However, that also relieves them of any outstanding liabilities. Which would also bankrupt several other companies as well as drive many employees and retirees into personal bankruptcy.
What about a government assisted restructuring? Essentially go through the bankruptcy proceedings in order to renegotiate a better labor contract. But government subsidies for retires, warranties and relief to their creditors. The warranties on recently purchased American cars can not be ignored and terminated in bankruptcy. Those have to continue forward. Let's face it, we're not going to get out of this without sending several billion to Detroit. Put the money to the victims, put the Big 3 on a solid footing and then see if they can survive.
I have driven GM products for several years. No complaints. Also have a Mazda in the garage. No complaints either. Both are great for what they are. For much of rural America, there isn't a Toyota dealer in their town. But there's usually a GM or Ford dealer around. The closest Honda, Toyota or Nissan is at least 15 miles from me. And I live in a very well populated area. Picked a Mazda because it was local. Not everyone has the convenience of a Honda dealer a few miles away.