The main opposition to auto company bailout is coming from Republicans in the congress. That is not surprising as they are traditionaly anti-labor. It is time for Reid and others to expose these Republicans so that whole nation should know who is letting the auto industry go bankrupt. The problem with Reid and such democrats that they have no backbone to stand up to these Republicans. Do not try to compromize. Just put the proposal for vote and let all Americans know who voted against it.
Posted by suresh at December 4, 2008 10:43 AMThe auto industry would reorganize under bankruptcy so this notion that all the jobs would go away is a red herring.
Even with a bailout the auto makers have a flawed business model and will continue to lose money. They will have to restructure no matter what in order to survive.
Posted by Muck at December 4, 2008 12:39 PMThe foreign automakers who have helped to bury Detroit have been paid billions of dollars in incentives by the states in a bidding war to get the factories and jobs here in the US.
Also, the foreign automakers home operation employees in design, R&R, etc, get their healthcare paid for by their respective countries.
Posted by TIKI AL at December 4, 2008 03:15 PMMuck, how would you react if you called your friendly dealer and were told that service on your car was no longer available? That would be a predictable outcome of bankruptcy, or even the threat of bankruptcy. We are not talking about an airline, or a bank protected by FDIC.
Posted by jackalope at December 4, 2008 05:43 PMWho takes there car to the dealer? Anyways they wouldn't go out of business, just reorganize.