The three Auto Makers looking to be bailed out is absurd, and criminal. Their problems are self inflated, and well designed to cry wolf at a time the economy is at its worst. For God sakes car makers are glorified car salesmen , they deal in trickery, lies and desperate measures to con people out of their money. I can’t believe America can be so stupid, I thought it was time for change. I that we as a people said good by to stupid when we elected Oboma. From Steven Montes Business Owner for over 20 years at Montes Orthopedic.

Executive pay at this point is hardly an issue to get stuck on...if things are as bad as the Detroit 3 allege.

My husband is a car salesman. He's always been honest whenever a customer asked, "Is that a good deal?" There were times he sold a car below sticker price to help a friend. Money was never an issue til now.
Currently, he works for Honda and is struggling real bad. Managers, execs, and CEOs still makes a decent check from his hard work; while we're nickle and diming through this hard time!
I sure would like to see a share of those CEOs' paycheck.

The proposed bail out of the “big three” U.S. Automobile manufacturers is a shocking notion particularly since this is Chrysler’s second trip to the bail out circus. In a free market corporations are suppose to prosper when successful and they are suppose to fail under poor leadership and poor adaptability to market trends. It is this survival of the successful that drive the free market and intervention creates a moral hazard. Let’s help these companies fail, and fail properly by providing the appropriate safety net for their employees.

It appears the Auto Executives have not been paying attention to their own industry. The revenue focus in 2008 has not been on who has better revenue - but which company has fewer losses. Not a model the U.S. taxpayers should be buying into.

The economy, changes in accounting rules, negotiations with labor unions, changes in employee benefits offered, and increase in prices of commodities (energy, steel) and changing environmental based laws are greatly impacting the profitability of this industry. But the big three seem to be the only ones not to have noticed.

The U.S. auto markets are struggling to meet the demands of the new economy and the new consumer. To meet these demands they need to develop programs that: reduced carbon footprint from manufacturing, reduced fossil fuel usage by the products they sell, base product recycling (recycling of metals/plastics), toxic recovery programs for used vehicles and parts (i.e. batteries). For long term viability and sustainability these companies need to reduce their “carbon footprint” and become more environmentally friendly while staying economically viable. The U.S. manufacturers have not yet adopted programs that allow them to meet these requirements while some of their international competitors are well on their way.

The U.S. based manufacturers at a frank disadvantage compared to the international based manufacturers who can often obtain cheaper labor thereby reducing cost of goods sold. According to the Ford Motor Company 2006 Annual Report another trend affecting the industry is a 15% average excess production capacity in the US and Europe. U.S. and Europe represent the largest mature markets for automobiles. While U.S. manufacturers have been in the process of reducing capacity by reducing production, selling subsidies, and closing plants; several Asian owned manufacturers (i.e. Honda, Toyota) have increased their U.S. based production capabilities to improve market share.

Failure might be the best option to save this industry. And make no mistake the U.S. needs large scale manufacturing capabilities on U.S. soil if for no other reason than national security. But, the U.S. needs companies that are successful in today’s economy, not hanging on the threads and organizational structures of the past. Bankruptcy could afford the Big Three the ability to reorganize their corporate vision and structure and delivery models. It would also afford them an opportunity to establish more sustainable relationship with the Unions, and parts distributors giving them a chance to be viable going forward.

If our tax dollars are needed to bail out these companies---let’s fix the hole in the boat at the same time, not just bail water for 10 years. These companies need to fail but they need to do so gracefully so their employees have a soft landing---that is the better use of our tax dollars. Let’s help these companies fail.