- Nobody will buy cars from a company that filed for chapter 11 bankruptcy.
- It's not the automakers' fault, the credit crisis is to blame for the Big three's inability to keep up with foreign automakers.
- The UAW conceded to placing high demands on the Big Three.
The UAW's concessions were not that great: the union barely budged. I've skimped out on more creamer for my coffee this morning than the UAW skimped out on their positions.
I will admit that the credit crisis/freeze is a big problem for any company that relies on consumer debt financing to generate revenue. This impacts more than just the auto industry. Besides the obvious problems with real estate not moving in certain areas of the country, the credit crisis is killing furniture stores, companies that build sunrooms and additions, landscapers, etc. I don't see Raymour & Flannigan asking for a handout!!! I don't see any of the businesses in these other industries asking for bailout money - and they probably won't get any because they're just too small for the government to give a shit about them (90%+ of these businesses are microbusinesses). Credit crisis aside, the Big Three have not been able to outperform foreign automakers in sales for at least 10 years. Why? American automakers aren't making the kind of cars that the market demands. It's that simple. the Big three don't need a bailout, they need better CEOs, transformational leaders with a clear vision and directive (besides survive), and an overhaul of the market research division. Osama Bin Kanjo will give a blank check to the Big Three, and they will continue with business as usual gradually watching their market share slip. I would prefer to see the free market take over and have these automakers get bought out by foreign competitors. Given the fall in our dollar, a better tax structure, and countless other reasons for maintaining operations here in the US, the Big Three would not really fade away; they would simply be owned and run by someone else who has a proven track record for giving the consumers what they want.
Chapter 11 bankruptcy is not the end-all for a business. It's merely a restructuring effort to help the company move forward. Many companies filed for Chapter 11, and people continue to do business with them (I bet you bought something from Kmart in the last 5 years). Saying that nobody will buy anything from a company that filed chapter 11 is like saying that a pregnant woman can pass up Ben & Jerry's.
I stand by what I said before: let the Big Three suffer and may the HR departments remember that a degree from Wharton or MIT is nothing but a piece of paper.