Originally Posted by Hazdaz
Something something teach a man to fish something something.
People don't want hand-outs. They want to keep their jobs and want to keep working. Giving out LOANS (not "Free money") to keep these companies going - especially at a time of severe economic distress - is the only answer.
Everyone is so short-sighted these days it's scary
... building cars has historically been a very profitable business.
Because GM and Chrysler's management have screwed things up for quite some time now does not negate that fact. If need be, replace each and every executive at these companies and start from there, but simply letting them go under is not the way to go. And bankruptcy is not the answer either because that would force every one of their suppliers (who are already hurting quite bad) to go under too, along with hundreds of thousands of jobs... domino effect.
I know your heart in is the right place here, but we have to be realistic. Currently GM and Chrysler do not sell enough cars to warrant having so many employees. They NEED to have some layoffs, that's inevitable. People need to face the facts that they will be losing their jobs soon. GM cannot and should not employ them just because its the right thing to do.
Allowing them to go into some kind of controlled bankruptcy does not equal bread lines for 2 million people. GM is too big to just vanish. What it needs is to trim the fat. Get rid of the dead weight. IF that means a lay off of 20% of the work force, then thats what it takes.
The loan is a token amount that literally is just throwing money away. It will do nothing in the long run unless the entire company changes vastly, from the dealer networks, to the manufacturing lines, etc. That is impossible in 3 months.
A company as top heavy as GM is, combined with the unions, is like telling a fat guy to run uphill with an anchor tied to his waist...
What happens after march 21st? They bring forth a plan to get them out of trouble, now what... do they get 50 billion more to enact the plan, then 100 billion more to rescue subcontractors, then 75 billion more to renovate factories...
It has to come to a head eventually, the airlines have all gone through a bankruptcy or two and they managed to come back leaner and more efficient. GM needs a good enema