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cleavetoo asked in News & EventsCurrent Events · 1 decade ago

Shouldn't we be reluctant to help the auto industry despite it's far reaching fingers?

GM in particular, has had ample opportunity to push newer technologies to stay ahead of the curve with electric cars and even hybrids. At every turn, they did the wrong thing. I'm very disappointed in this company and I feel that supporting their bone headed business model is just wrong.

Update:

Two things...it appears that the bonuses you speak of were part of the sale of the company when there was a healthy parent company financing Chrysler. A contract is a contract. The bonuses aren't so alarming but as it is they're late so they're likely going to have to pay them no matter what as a matter of legal principle.

But one of the reasons there's much support for bailing out the the auto's is that there are potentially 1.2-3 million jobs that would be affected by the closing of any or all of the automakers. Remember, there are computer makers, stereo comapanies, glass companies, tire comapanies, etc that would all be affected by the closing of such a far reaching industry. I think there would be a period of pain followed by some other company who seizes the opportunity to create a new car company which would have a business model based on common sense.

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  • Anonymous
    1 decade ago
    Favorite Answer

    Many people in America, including our government, support socialism. But this is a perverted type of socialism where the serfs suffer all the losses and the rich reap all the profits.

    The only way any corporation should be given tax money is if their entire management agrees to become government employees and accept government wages and benefits. No millions of dollars in bonuses, no billion dollar pension plans. No multi million dollar salaries. The CEO's would get 150 grand a year and decent health care. And collect social security when they retire.

    Let the government offer that bail out, and see how many corporations still need government money.

  • dan m
    Lv 6
    1 decade ago

    we could bail them out but it would be wrong. my thoughts are there might be an auto maker come along with a better quality vehicle and cheaper and could bring a fresh breath of life to the economy . uaw has helped screw up the auto industry by high wages and benefits and the management has put out trash that nobody really wants.

    Source(s): its time for change its time for the ones that cant make it to fall and for new buisness to form its part of the cycle
  • 1 decade ago

    its up to a company to do what they need to do to keep growing. thats what a capitalist democracy like our own is supposed to be like. If GM cant handle today's economy then they dont deserve to be around. Why should the government give them free money when the government is already $21 trillion in debt already?

  • Anonymous
    1 decade ago

    Right. When will the bailouts stop. Is the government going to start giving money to EVERY industry that is in trouble?

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  • Anonymous
    1 decade ago

    In principle you are correct. But, as a matter of practicality, if the auto industry in USA dies, we are all in a world of hurt.

  • 1 decade ago

    That is their own demise. If GM made there cars more reliable as their foreign rivals then they would not be in this mess. I know this problem is going to cost smaller businesses money but.... i don't know we'll see what happens

  • Anonymous
    1 decade ago

    The non union car makers don't need a bailout.GM is run by the Mafia.

  • 1 decade ago

    after Chrysler just gave million to each of their executives today I say no,

    http://www.freep.com/article/20081113/BUSINESS01/3...

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