NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Bail out Detroit?

November 17, 2008
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Two schools of thought are emerging over the proposed bailout of General Motors, Ford and Chrysler.

One is that the auto industry is too big to fail. Itâ??s not just because of the manufacturing operations and all the suppliers and their workers, but also the many dealerships that support tens of thousands more employees.

The other is a tough-love scenario of allowing them to slide into Chapter 11 to see if someone else could make a go of the business. A bankruptcy might shed not only unnecessary costs but also incompetent management, the reasoning goes.

Meanwhile, senators from states with few or no plants operated by Detroit car companies are opposing a bailout. Even Indiana Sen. Richard Lugar is lukewarm.

What do you think?
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