That said, a taxpayer-funded bailout for the Big Auto is not a practical solution as it will only delay the inevitable demise of the Big Auto. It will not fix their flawed business models, bloated cost structures, inferior products and an out of touch management, which have contributed to the problem at the Big Three. The goal should be to solve the problem and not push out the problem until later.
Both the management at the Big Three and the UAW are disconnected with the existing realities in increasingly globalized automotive markets of 21st century and as such should be allowed to go the way of the dinosaurs. Simply throwing $25b of taxpayer money without any path to viability would not accomplish anything, especially when these people cannot seem to get anything right.
The Big Three management and UAW have displayed an utter lack of vision on how to solve the problems their compaines face. The fact that CEOs of the GM, Ford and Chrysler flew in private corporate jets to Washington to beg for taxpayer money, shows how disconnected they are with any sense of time, place and circumstances.
They need to be forced to make the painful and tough choices they have been unwilling to contemplate to date. Bankruptcy is not such a bad solution as it is made out to be. Only a complete restructuring will allow a modern auto industry to emerge with new vision and business model that can compete in the global automotive marketplace. The restructuring must focus on the following:
- Fix the cost structure including new labor agreements
- Bring in new management with fresh vision for a new start
- Commitment to invest in innovative technologies such as fuel-efficient design and electric car batteries.