Bailing out Detroit carmakers

September 10, 2008
Back to TopCommentsE-mailPrintBookmark and Share

Executives of General Motors, Ford and Chrysler are optimistic about their chances of getting inexpensive federal loans to help tide them through the credit crunch and sales downturn.

The discussions, which have come to light in recent weeks, have the execs smiling like possums not only because the government set a precedent by bailing out Wall Street, but also because itâ??s an election year.

Theyâ??d like to see Congress OK the loans this fall. And it would be difficult for John McCain and Barack Obama to say â??Noâ?? to the swing state of Michigan as well as the auto-dependent states of Ohio and Indiana, which also are in play this November.

Should the government offer the loans?

  • absolutley!!! no questions asked. too many jobs in Indiana rely on the auto industry and Michigans economy is in the John because of these three companies.
  • Here we have another example of companies that have done poorly in the free market and now wish the government to bail them out. To bail out these companies is akin to giving these CEO's a free pass on all the poor decisions they made. It will provide them no incentive to improve themselves and they will continue to fall further and further behind the Japanese auto-makers. Why should consumers who have already rejected the products produced by the American auto-makers be forced to support financially the inefficient way that these companies do business?

    There are many jobs in Indiana that rely on the auto industry but more and more are coming from the likes of Honda, Subaru, and Toyota. Michigan has not done as good a job of diversifying its economy for the 21st century. If it continues to rely on companies that have had steep financial losses for over a decade now then perhaps they would be wise to encourage those auto manufacturers that are doing well to build plants in their state.
  • It doesn't really matter what anyone thinks. The pols will push this through no matter whom is at the helm.

    Shoot, the guys in DC that are supposed to serve us have failed miserably in doing their jobs. This would be one more example. Add your own conntributions to this list:

    1. Failure to adequately secure our borders
    2. Failure to control spending (remember it is Congress that spends)
    3. Failure to work toward energy independence (they've done just the opposite)
    4. Failure to provide any decent alternatives to the broken public education system (remember no child left behind which promotes testing over learning and quantity over quality
    5. Failure to focus on the issues important to taxpayers (remember Dan Burton and the silly investigation of drug use in Baseball instead of providing a sane energy policy)
    6. Failure to provide a simple, workable tax system (say hello to Fair Tax and goodbye IRS)

    So, what do we do - try to promote 1 of 3 Senators to the Presidency - why, they have ALL failed to do their jobs and yet they want to be promoted? No matter whom wins, we get what we deserve.
  • I don't believe the government should bail them out. Maybe this will make more U.S. companies examine their practices to be more fiscally responsible. When the big 3 were manufacturing bigger trucks and SUV's, they should have been doing a better job of planning for the future. These companies and most organizations affiliated with them have brought it on themselves. Each company is just like a spoiled child that will continue to make poor decisions until someone forces him to take responsibility.

Post a comment to this blog

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by