Bailouts and Golden Parachutes.

So the American Auto industy is lining up to the money pit, er asking congress for a bailout. The big three flew private jets to Washington DC, asking for loans from Congress.
Aside from having more hubris than Paris Hilton, they forgot one thing.

They dug their own graves.

  1. Like the 1970’s, they sold gas guzzling big hunks of steel, while the foreign car makers produced smaller, gas sipping cars
  2. They let pension and retirement choke them.
  3. Reseach, the Japanese are eating the Big Three’s sushi again! More hybrids and less private jets.
  4. The management lunatic are running the asylum. Executive perks and insane salaries must go.

Alas, the 1980’s are over. There are no white knights. While the government may bail these guys out this time, it’ll just prolong the inevitable. Bada management, forcing costs to overtake profits has hurt. The debate is not about outsourcing. I worked for a warehouse before I joined the Army. EVERY BIG AMERICAN COMPANY OUTSOURCES. Period. Those that don’t are either too small, build products that cannot be outsourced or have a non-business reason to outsource. Parts to many cars are made overseas. Ford’s have Mazda engines, others have Mexican and Canadian parts.

Meanwhile, the foreign companies that operate here give their workers good salaries and enjoy fewer problems.

Paying for failure is not spending the taxpayers money wisely. Let’em sink. Maybe the successors will know better.

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