Explain something to me please..

[rosethecopycat]

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.

[Catlady711]

I'm sooooo bummed I didn't get to catch all of the hearing today with the auto makers but I did catch this part and finally found a politician I can respect (at least in this issue anyways). ROFL



http://www.reuters.com/article/newsO...4AI8C520081119

Chief executives from General Motors Corp, Ford Motor Co, and Chrysler LLC pleaded on Wednesday for $25 billion in federal assistance to help pay their suppliers, workers and other expenses at a time when car sales have plunged along with a souring economy.

"I don't know how I go back to my constituents and say the auto industry has changed if they own private jets which are not only expensive to own, expensive to operate and expensive to fly here, rather than to have flown commercial," said Rep. Brad Sherman, a California Democrat.

Sherman asked the CEOs if they were willing to sell their jets on Wednesday and fly back to Detroit on a commercial flight. "Let the record show no hands went up," Sherman said.

This guy is SOOOO cool!

[sasvermont]

We could send her in to sell those corporate jets, the car executives flew in, to the meetings in DC.

I just watched a broadcast of Charlie Rose on public TV - about the car industry bailout(s) and boy was it depressing. It seems to me, Chapter 11 would give the industry a bit of time to regroup, get new *&^%^&* management, negotiate new union contracts and supplier contracts, etc. etc. I sense, that unless they change the boards and the management, they will go deeper in to the dark hole. I learned lots about the dealer contracts with each car company and how difficult and expensive they are to get out of.... You just cannot close a dealership. From what I heard, the only way to close some dealerships and stop selling some of the hogs they produce, is to go into Chapter 11.

I respect Charlie Rose, for some reason and hope that what I saw just now, was not faulty information. He had two spokespersons on - I liked both persons, but seem to think the bailouts would be just a waste of taxpayers money at this point.

I think the car industry, including the foreign cars and manufacturers, is/are on the edge right now and within the big three here in the USA, their edge has been near for a long, long time. Who didn't expect this?

I am sick just thinking about the number of jobs that will be lost no matter what direction this mess goes..... jobs, homes, educations, retirements. It isn't going to be pretty.

Its a good thing I work 5 days a week and don't get to see the news each day or I'd be suicidal by now.

We all have to be grateful for what we have, however much.

Ugh x 1,000,000 ...... here is the link to the interview

http://www.charlierose.com/view/interview/9591