Should GM Fail ?

On what you mean by fail. It absolutely needs to declare Chap 11 and be restructured, shedding its union contracts, payoffs to non-working employees in the "job bank", and re-invent its product line.

If it cannot achieve the above, then it must die completely, even if not painless.

What the gov't did for Chrysler was NOT a bail out, but a $500 million loan. Lee Iachoca was able to restructure the company, turn the losses into major profits, and payoff the loan to the gov't in fullm with interest, 18 months ahead of time. That is change we CAN believe in.

Like the Air traffic controllers strike, the GM union employees should be given a new contract in the shape of Toyota's employees, and be given 48 hours to report to work or be fired. A LOT of people would gladly hire on for those jobs at half the union wage.

Tough Love.

Glenn

"Bailout" isn't a specific term. The Federal Government loaned Chrysler 500 million, without which it would have likely failed. Seems like something of a bailout to me.

But, more importantly, Iachoca was an honest to goodness "auto maker." He was an auto designer, and marketer, (he worked on the Mustang while at Ford, and the first minivan while at Chrysler) as well as a great business person. His autobiography was one of my favorites. He was not a Wall Street stock shill like the guys who are running the big 3 now.

My point expressed even more adeptly. Thank you.

I do not believe there is as much real danger to our economy from failing auto mfrs as there is believed to be from a failing mortgage/credit/banking industry. Although I wouldn't have bailed them out either.

Hands off, free, unfettered market, working on its own laws, and LEFT ALONE.

Glenn