Should the big 3 be bailed out?

[APXD 30]

AMoore wrote:

Ccns23 wrote:

Let them go into bankrupcy and reorganize. A judge can then void any labor contract and force the union to make SERIOUS concessions. I understand that a failure of any of the big three will have a huge impact, but I believe I read somewhere how the US automakers start each year 3.3 billion in the hole just for retiree benefits and pensions. I'm not saying that the unions are 100% of the cause, but they are a major contributing fact. I mean seriously, they have a contract that says no one in the union can be layed off. So, if a plant shuts down, the automakers still have to pay all of those employees they're full pay and benefits OR buy out their contract. Does that sound right to you? The unions haven't done their part IMO.

And would it kill them to come up with a decent design on a car? I mean look at the Ford Flex...can you get any more lazy with design? No style, no excitement, nothing. Just bland and IMO ugly. If they showed a little more effort I'd be for a bailout, but they don't deserve it. Let them go bankrupt and sort things out.

Agreed! Yes, I know many of you are surprised that is is not my usual liberal position. But I don't like bailouts without a detailed long term solution. The big three would survive reorganization, and would be able to cut the fat in the process. Too often people say "its not fair" without offering a viable alternative. A bailout will only lead to a bigger problem down the road.

Agreed, they need a pre-packaged Ch.11 and a judge to throw out the existing labor contracts. They don't need cash (GM has $111B). What they need is to reinvent themselves to be competitive in our current century and beyond.

A bailout only puts a Bandaid on the problem.