An Auto Bailout? OK,
but it will be painful for the auto industry.
November 12, 2008
They caused the problem themselves by
not responding to market conditions.
The Auto industry wants to have a turn at the
OK, no problem.
It will cost all involved.
Obama needs to assign a group of financial
experts to fix the Auto industry.
The group will be small and have a mandate
to complete the mechanics of the turnaround in
less than a year.
The numbers need to be crunched and a bottom-line found.
The Big Three need to become the ONE and the
slashing of costs to the bone needs to begin.
Legacy costs need to be rolled up and paid off.
Lump sum compensations for retirees.
Each car model must make a reasonable
profit or discontinued.
Each auto plant must make a reasonable
profit or closed.
Each worker must be expected to give up wages
and benefits, management will be expected to
do the same.
Bonuses are gone.
The Big Three will become divisions of the ONE,
with a central plan to make a select line of cars.
The best seller of each line will continue, the other
two lines will be discontinued.
I have no sympathy for greed or incompetence.
You want help it comes with a very high price.
The US taxpayer will receive 50% of the profits
before taxes and expenses until the US government
is paid off.
This Is a quick thumbnail fix. There are other details