JBD

Go read this, and then you'll know for sure why the Rigged Three need to go through Chapter 11.

As the Chief is fond of saying "Ford is getting higher quality ratings than Toyota and Honda." The post I link explains why spot excellence is not a justification for funding the overarching failed financial model.

There is no reason why Ford trucks, Jeeps, and other popular and efficient Chrysler and Chevy lines should not survive bankruptcy and emerge as profitable companies. It is fiction that bankruptcy will shutter all plants and cripple North American manufacturing. Those who are saying so are carrying the water of the UAW. I'm looking at YOU, Nancy Pelosi!.

For this rebirth to happen, however, the automakers need to shed the pension, wage and work rule burdens of their current UAW contracts, and to re-create themselves to be as lean at the management and sales levels as they are at the manufacturing levels. They have existing working models to copy - Toyota, Nissan, Honda, VW.

Because of the glut of cars in North America, all carmakers, along with their dealers and associated businesses, will go through hard times in the next 3-4 years.

If we let the market dictate the winners and losers, the winners will come out the other side lean, mean carmaking machines.

If we let the government pick winners, we'll only delay and worsen the pain. Lance the boil now, and let the healing begin.

Hat tip to Jeff Eckles for the economy.com link.

Posted by: JBD at 01:31 PM | No Comments | Add Comment
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