Quote Originally Posted by Twisterdog View Post
One problem with the "bailout for retooling" idea is that the American consumer is a spoiled and fickle creature. Once this recession is over, and good times are here again, the American public will be screaming for giant SUV's, Hummers and big luxury cars again. It has happened time and again.

Supply and demand is a natural law that cannot be changed with bailout money or legislation. If the demand is there, the supply will follow - a basic principal of capitalism. If the American people start demanding foreign cars on a long-term basis, all the bailouts in the world won't save an industry for which there is no demand.
You are right here.

Does anyone remember 1980? We drove around in our Fiestas and Rabbits. The smaller the better, after gas had tripled to a whopping $1.10

Now it's Hummers, Escalades and all the excess you can imagine.

Richard- you are right on about the unions.

I was born and raised in Detroit. (I never worked in the auto industry- but most people I knew did have some connection)
About 2 years ago, I took a tour of the Ford Rouge plant, in my home town.
The line workers were 'earning' $35 hour, from what I was told. It's pretty much unskilled, if you ask me. (I think I could perform those tasks within a short time-but I'd have to kill myself due to lack of stimulation/creativity)

Anyway, part of the problem is the unions, another part supply and demand. And the fact that nobody seems to remember driving smaller modest cars.
Another problem is the quality issue with the Big 3 manus.

My current car is a Hyundai. My previous car was a Ford. (it was a piece of crap) And, come to find out it was really a Mazda anyway.

Retooling IS the thing to do. They should have been thinking about that for a long time now (how about 30 years) How could this have snuck up on them?

I think I'd rather see the car giants in a merger or in a bankruptcy than a bailout. Where does it stop? Airlines have emerged from bankruptcy.