As one agrees that they should get the loan.
Many years ago the UK had a mass produced car manufacturing base – that went under Thatcher and the remaining Conservative governments. Rather than helping them out the Tory governments said in the world of the free market they will live or die.
There was a problem with the unions at the time – much is the same in the American car industry now.
There was a problem with the crap management – the same with the American car industry now.
There was many who were over-paid for the jobs they did. Again, the same with American car makers now – and lastly but not least – British cars were garbage – much the same with American cars now.
So why would I agree with those car makers getting a loan deal?
If this had happened in the UK all those years ago when the car manufacturers were sold off thousands and thousands of other jobs would have been saved. It isn’t just a matter that the car manufacturer would still be able to produce crap – it could have been negotiated that the lender have some say in what happens from there on in. Get good management in and if necessary renegotiate employment contracts.
That would have to happen – because if you want everyone to have a job there has to be a great deal of give and take on both sides. But one side this time will have to give more than the other. Having those jobs is very important – but you must also be able to sell at a profit so you can reinvest.
It just isn’t about the big 3. It is all about those who supply them and the jobs that will go if one or more of them should close. Making a much better product will be re-tooling – getting those cars built in the US is a part of a larger package.
Part of that package would be the immediate dismissal of such bad designers and management and workers taking a pay cut that reflects their jobs as of today. Getting $45,000 a year is a healthy wage.
People don’ buy American cars and there is one simple reason for that – they are not good cars. THAT is what you have to change first and foremost.
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