Capitol Hill Blue Forums Political Issues Finance, the economy & Economics Bailing out the auto industry - yes or no?

Yep. that looks just like the analysis we've done on the "just for fun" thread, GT. Very rewarding to see that an "expert" used similar methods and came up with similar results.

Speaking of that other thread . . . your comments about the UAW dovetail right in there too, Jeff. You make a good point about bankruptcy, which brings up the question: if the taxpayers bail them out, doesn't that just delay the imperative? Wouldn't it make more sense to wait until after they file for Chapter 11?

An interesting parallel from my neck of the woods: Champion Paper Co. used to own a pulp mill a few miles west of here. Back about twenty years ago, they filed a Chapter 11 to avoid having to install expensive new anti-pollution equipment. Rather than letting the mill close down and ruin the economy of the 20,000 population town it supported, the workers got together and acquired the mill, reorganized under a new corporate charter. They put in the necessary pollution controls and continued operating, apparently with reasonable success, as they are still making the union-level wages they were getting under Champion's ownership.

What would happen if the UAW owned GM?

What would happen if the UAW owned GM?
Probably something like this.

I don't get it, Jeff. What are pointing to?

Perhaps because many people commented on its styling by asking the rhetorical question, "Which way is it going?" Fred Allen (a car guy) quipped: 'Next year Studebaker is coming out with a model that you won't be able to tell if it is going sideways'.

Just a guess.

Interesting that the first model listed is an electric car.

Or, perhaps, something like the early years of Saturn? Single pricing, involved workers, etc? Saturn seemed to do really well with that; as I recall, it was when GM got more and more involved that things started to go downhill. I didn't follow it all that closely. I only know that I loved my first Saturn and the way that I bought it; when I looked at a second one, I was greeted by a typical car dealership - and I walked away.

In fairness, it was more or less through the grapevine that I heard GM had really stepped hard on Saturn to get it to follow the corporate (as opposed to Saturn company) line.

To be fair, Saturn were some of the worst build cars ever. Cheaply made and broke down often.

On what do you base that Kap? My partner has had one since 1999 and it has had no significant problems and never broken down.

I loved mine - it ran nearly 11 years, not only without a breakdown, but with almost none of the recommended maintenance. It didn't die; it was killed.

My understanding of Saturn products (never owned one) was that they were well made but slightly behind the times technologically. But the main gripe from owners was that the engine was noisy. Perhaps our resident car expert Jeff can weigh in on this.