Tuesday, November 11, 2008

The Big 3

The question is, Should the big three get bailed out. A lot of people say no but I think more say yes. Although I think that they have done this to themselves they still should be bailed out because there are too many jobs at stake here and the hit to the economy both here and south of the border would be devastating.

The big 3 screwed themselves with their big trucks and suv's and if anyone tells me that they didn't know that gas prices were going to go up and hurt their sales, they are on crack. Gas has been going up for years and no signs of going back down. Now of course the price of gas has dropped again but it is too late. People are now scared that they might go back up again and you can see dealers yards full of trucks that they can't move.

Unfortunately the actions or the lack thereof by the head offices including sales, marketing and design have cost thousands of jobs and threaten thousands more. The current outlook shows that even with a bailout there will not be a big 3 at the end of next year. One or more will be gone. Chrysler is the best target. Chopped up and sold off in pieces with more jobs gone after 50 billion has been given to them. The big question is, will the government attach strings to the money like keeping jobs, fat chance. They will hand it over just like they did to the banks. No strings attached and away it will go.

Maybe they should give them the 50 billion on the condition that they use it to come up with electric cars. Lets see how fast they could bring something to market then. none of this 5 or 10 year crap.

The worst thing is that with all 3 in such bad shape a recent poll showed that 80% of people asked would not buy from the big 3 due to worries about them going under. It will take billions and years to get the confidence of the people back.

Does the big 3 have that long?

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