Unions and compensation, that some believe is out of line with the reality of the market, are no doubt a big part of the car makers woes. Make no mistake, unions have over the decades meant the difference between a worker having some semblance of existence and just being a replaceable cog. But today, methinks the unions are often inflicting more harm than good on the workers.
The car makers have been innovating and building more efficient cars, and thus they are now cramming 300, 400 and even 500 horsepower into the vehicles they sell. But many consumers want something with better fuel economy, and even with the price of oil and gas falling, I'm not swayed by the siren song of the modern muscle car. However, for the first time in forever, the car makers appear really interested in building über-efficient cars. Chevy Volt, Ford Fusion hybrid, Saturn PHEV, Chrysler REEV, et al. It would be a wasted opportunity if these cars don't come to market.
Many companies, even companies that sell products consumers will keep for years, do undergo BK reorganization and emerge stronger. But, I have to agree with the opinion that cars are different. When it's time for me to buy, no matter how good I may believe or know the product to be, in the back of my mind I will be wondering about the warranty, service and what happens if they reorganize yet again. Rather than produce adequate spare parts to maintain the cars they sell, will a carmaker simply BK every so often.
All that said, given what's been written about how much GM and Ford are bleeding each month, and given that GM is now warning they might not make it to the end of the year without a bailout--just 6 weeks from now--letting the market work and allowing them to BK or dissolve might in the long run be the best course of action.
I dunno. Just spitballing here. Which probably qualifies me for Treasury or Commerce Secretary.
