The Hurricane That’ll Bring Down the Auto Industry (But We WILL Rebuild)

It's hurricane season for the auto industry

It's hurricane season for the auto industry

I’ve had enough. I’ve decided that it’s time to let nature take its course with the auto industry.

As jgoods posted earlier, one way or another the car companies are going to go through a bankruptcy. It’s just a matter of what form it takes.

When a hurricane is approaching the Gulf Coast, there’s nothing our government can do but sit back, evacuate people, and hope that rebuilding doesn’t take too long. The collapse of the U.S. automakers is a similar storm, and there’s no stopping it.

Instead of spending money on saving the companies, let’s start thinking about how we can help rebuild them after they shatter. GM is on the right track by eliminating brands and focusing on becoming a leaner company. Doing so is like boarding up their windows to help weather the storm.

American automakers have lived in excess and luxury for years, and the reality of it all is coming crashing down. In this storm, people will lose their jobs. Car brands will disappear. How much is the government willing to spend to prevent this? I think taxpayers have spent enough money on prevention, and now we need to focus on response – getting those who lose their jobs back to work, either in the auto industry or rebuilding the highways our cars drive.

The government is shouldering all the financial responsibility to save an industry that employs a lot of its citizens. That’s noble, but misguided. If a private organization (Big Oil, anyone?) wants to invest in saving the car companies, by all means, let them. Government involvement, though, should be limited to overseeing the bankruptcies and subsequent rebuilding.

I agree the U.S. can’t stand by and let the domestic auto manufacturers disappear forever. I’d just feel better if we invested in the rebuilding of leaner companies, rather than supporting the modern ways that have become so archaic and wasteful. Bring on the storm.

Do you care what happens to the U.S. automakers? Would their collapse affect you? 


1 Comment

  1. Why don’t you think the banking industry should be allowed to fail as well? Look at the huge losses also being posted by foreign car makers like Toyota. Have they been living in excess and luxury for years too?) Rick Wagoner talked about the real costs of bankruptcy for the government, which are much higher than they will be if bankruptcy can be avoided. You seem to have a grudge against the U.S. automakers. Why is that?

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