There are also good and defensible reasons as to why the major car companies should be assisted through the approval of loans for the purpose of helping them survive a serious economic crisis. Of course their is the incredible impact that the loss of GM or Ford would have on the US economy due to the large number of people employed either with or through them. While the so-called "Big Three" directly employ around 335,000 people, their jobs would not be the only ones affected by the failure of the US auto industry. It is estimated that nearly 1 out of every 10 people employed in the US is employed by a company or in a service related to the US auto industry. Even if we could somehow contain the job losses to the 335,000 directly employed by the industry, the collateral effect such an increase in the number of people suddenly jobless would have on the economy is likely to be more than our economy can handle and will plunge the US, and most likely the world, into a depression likely to be much larger than the one experienced in the 1930s. History also shows that the major auto manufacturers played a vital role in the defense of the US during WWII and Korea. During WWII the former president of GM, William Knudsen, headed the effort that lead the US auto industry to produce some $29 billion dollars worth of vital war materiel. Thus it can be truthfully stated that the US citizenry has a vested interest in the survival of the US auto industry due not only to the impact their closure would have on the economy, but also as to the role they would play in any future major conflict in which the US was involved.
As for the supposed lack of quality in the domestic vehicles, I can say that my company car, a 2007 Chevrolet Equinox AWD, is a very nice car. It gets very good fuel mileage, is quite, rides smooth, and handles better that any car-truck has the right to do. My parents own a 2008 Buick Lucerne, and it is a fantastic automobile. On their recent trip for the holidays their Lucerne averaged 30mpg, and has to be the quietest car I've ever ridden in. Everything about this car performs flawlessly, a statement I cannot say about my wife's current car, a 1999 Mercedes Benz SLK230. The SLK's interior sheds parts faster than a long haired dog sheds hair in the spring, and the seats are really comfortable for at least the first 30 minutes! Her former car, a Mazda Miata was the worst though. The engine was noisier than a 40 year old sewing machine, and the interior was made by the same people who bring you those molded plastic cafeteria chairs!
My last GM car was a 1996 Pontiac Bonneville SSEi which pushed 30mpg on the highway, and had more than enough pep to be quite a fun car to drive. Before the '96 was a '90 that we sold when it turned past 200K miles, needing only a security module and an alternator during its stay in my family.
Yes, GM in particular and the US Auto Industry in general need to revamp their operations, but you cannot change a company as large as GM overnight. Especially one that is required to pay the employees it lays off for an additional four years! GM pioneered the air bag, brought us the successful front wheel drive car, designed (and I believe still builds) the crash-test dummy, etc, etc. GM has been turning its ship around for some time now, though the recent economic downturn hit them while they were still down, and much like the Queen Mary, this ship will need a bit of room if it is to avoid a fatal collision.
Shiny Side Up!
Bill
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You ever wonder what medieval cook looked at the guts of a pig and thought, "I bet if you washed out that poop tube, you could stuff it with meat and eat it."
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Brian Hobaugh SCCA National Tour June 2014
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Short clips: Goodguys Pleasanton autocross and pit videos
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