Got a bad business? It’s OK
Have you run a bad business? A business that has failed to cater to the market’s needs? A business that has continued to sell bad, unreliable products? A business that should be filing Chapter 11? A business that is utterly inefficient, plagued by unions and bureaucracy, and completely inferior to its competition?
It’s OK. The government will give you billions of dollars.
U.S. automakers are “very likely” to get bailed out. This infuriates me, because they absolutely don’t deserve it. My first new car was an American car. It needed a new transmission only a few months after I drove it off the lot. I have heard similar horror stories from many of my friends. For these reasons, my current car is a Toyota, and I couldn’t be happier with it. I have done 360s on ice, hit snow banks, forcing me to go on 2 wheels, been hit while parked, offroaded like a mad man, and my Tacoma runs like a dream (knock on wood). My whole family has gone from entirely American to entirely Japanese, and we couldn’t be happier.
All reliability concerns aside, I have two favorite things about American car companies:
Unions
American automakers pay nearly double for their unionized workers when compared to most foreign automakers, whose workers are not unionized but are on average happier.
Warning: the claim I have just made is not supported. I heard this quote from a friend, who read it in a book. Please do some digging if you plan to use this claim, research that I am too lazy to do :).
Product Development
You’ve heard of these hybrids, right? You know, those cars that get good gas mileage? I got an idea. Let’s take our disgusting large SUVs, put hybrid engines in them so their fuel efficiency goes up by a few miles-per-gallon, and sell them for thousands of dollars more. Sounds like a great idea, right? GM would agree.
The most irritating thing about this bailout, though, is that the foreign automakers who have ran their businesses well will not see a dime of money. The U.S. government is giving money to failing businesses and not providing any reward for businesses that have succeeded (as far as I know). This is not capitalism. This is ridiculous.
I should say, though, that it is easy for me to be annoyed, because I do not know anyone employed by any U.S. automaker.
Update: make sure you take a look at this photo.
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“hey let’s fly our private jets out to DC, so we can panhandle our way to billions of dollars”
Those damn private jets.
You even own a Jet!!! oh wait! You own Jets!!! Can you give me a ride if you ever pass by my sky?
I absolutely agree with all of your points.
On the other hand we’re already bailing out lots of companies that failed to perform well and even fraudulently (AIG comes to mind) with a lot more money than is slated for the automakers, so why not throw more taxpayer money at underperforming “american” companies?
I also happen to have an uncle who may well be hurt by the possible collapse of terrible US automakers (he’s in the steel industry in Ohio). However, him losing his job is a small price to pay to see the death of a company that doesn’t deserve to live.
Thanks for the comments, Ryan, and good luck to your uncle!
flora, I’m a long way from having my own jet ;).
[...] I ranted pretty hard yesterday about American automakers getting bailed out. [...]
for everyone’s information (FEI): i was mocking this little tidbit: http://abcnews.go.com/Blotter/Wallstreet/story?id=6285739&page=1
Thanks for the link, Chris!
Not going to take on the whole rant (even though I agree with the general sentiment), but just wanted to point out one minor point: how silly it is to boast 20 mpg on a hybrid Escalade.
Agreed!