Follow BeltwayBlips on Twitter
Expla-Nation: Auto Industry Bailout
Politics Daily —
... to depression. Third, any restructuring under Chapter 11 bankruptcy rules would be a death knell... accelerat(ing) the collapse of consumer demand and the mass bankruptcy of parts manufacturers. The crux of his argument is that saving GM could be a vehicle (sorry) of needed change to the auto industry, while Chapter 11 for GM would certainly kill it. CONS On the con side, favoring bankruptcy for GM, here's Michael Levine at the Wall Street Journal: General Motors is a once-great company caught in a web of ...
A Good Solution for Automakers
The Glittering Eye —
... It look to me as though a decent compromise solution for GM and, possibly, the Detroit automakers generally is emerging. In this morning’s Wall Street Journal, Michael Levine makes an argument similar to the one I’ve been making here for some time, namely, that Chapter 11 bankruptcy is the appropriate solution: ...
The Canadian model
Daimnation! —
... widely understood.
You would have an auto industry in the United States more like that of Mexico and Canada: foreign-owned, said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor, Mich., which describes itself as a nonprofit organization that has strong relationships with industry, government agencies, universities, research institutes, labor organizations and other groups with an interest in the auto business...
This is related:
Why Bankruptcy Is the Best Option for GM ...
Why Democrats Are So Eager to Save Detroit Auto Makers
Flopping Aces —
... held these companies hostage to a failing business model don’t get hurt.
Consider this:
GM also famously spends over $1,600 per vehicle on the healthcare costs of current and retired U.S. workers while Toyota pays about $200 per vehicle. Although GM also pays about another $1,000 per vehicle on holiday pay, work rules, plant-shutdown-pay and line-relief to UAW workers — expenses Toyota, for example, does not have.
And this from the Wall Street Journal:
GM has about 7,000 ...
Let GM Go Bankrupt
Wizbang —
I know many people will be upset if GM goes bankrupt, but it's what needs to happen. GM has many, many issues that are slowly destroying it, but one of the biggest problems is that the unions have a strangle hold on the company and are sucking the carcass dry. A federal bailout will offer only a transfusion, and all it will do is delay the inevitable. Michael Levine at the Wall Street Journal outlines how GM has gotten to where it is and how it will never change unless forced to through bankruptcy. Here's a portion: Consider the costs of tackling GM's problems with some kind ...
GM Pleads Its Case - To Me
Real Clear Politics - TIME.com —
... family using the link on the site. Thank you for helping keep our economy viable. Sincerely, Troy Clarke I think Mr. Clarke might have gotten carried away with his finishing flourish, suggesting that the entire American economy will no longer be "viable" if GM is allowed to fail. Indeed, having read the arguments on both sides fairly extensively, it seems to me the "let GM fail" crowd has put forth the far more convincing case. (The best of the bunch is probably yesterday's piece by Michael Levine in the Wall Street Journal.) GM is undoubtedly hurt by the fact (which Mr. ...
Let General Motors Go Bankrupt
Say Anything —
... Michael Levine makes the case in the Wall Street Journal for letting General Motors (and presumably other auto makers too) go bankrupt: ...
Auto Industry Bleg
Political Animal —
... to having too many brands, or is this it? (2) Business Week again: "The problem has long been that the company does not want to have to pay dealers to fold the brands it does not need as it did with Oldsmobile in 2001. State franchise laws prevent a car company from simply ending a brand. Closing down Oldsmobile cost the company around $2 billion." Question: Is there any obvious reason why state laws should be able to prevent a car company from closing down a brand? (3) The WSJ : "GM has about 7,000 dealers. Toyota has fewer than 1,500. Honda has about 1,000. These fewer and ...
Auto Industry Bleg
Obsidian Wings —
... Business Week again:
"The problem has long been that the company does not want to have to pay dealers to fold the brands it does not need as it did with Oldsmobile in 2001. State franchise laws prevent a car company from simply ending a brand. Closing down Oldsmobile cost the company around $2 billion."
Question: Is there any obvious reason why state laws should be able to prevent a car company from closing down a brand?
(3) The WSJ:
"GM has about 7,000 dealers. Toyota has fewer than 1,500. Honda has about ...
