A managed bankruptcy may be the only path to the fundamental restructuring the auto industry needs.
With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses.
From the lessons of that turnaround, and from my own experiences, I have several prescriptions for Detroit’s automakers.
It is not wrong to ask for government help, but the automakers should come up with a win-win proposition.
In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check.
Without that bailout, Detroit will need to drastically restructure itself.
Detroit needs a turnaround, not a check.
IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye.
COMMENT - GM and Ford are on the mend now, and electric cars and hybrid electric cars are making massive improvements in performance and MPG which will help to slow the pollution output of current cars
PIC- Tesla Model S