The way I see it, there are three options:
1. Keep giving the auto industry bailouts with no conditions and trust they do the right thing. This is stupid.
2. Let the business fail and allow the free market to correct itself. Better, but we invite Japan, Korea, and China to take over our auto industry. Quite frankly, I'd rather the U.S. government be in control of the auto industry rather than a foreign one.
3. Find some sort of middle ground which is what this administration is attempting to do.
The question is which one sucks least because they all suck.
There is another alternative. It would not even be that difficult to do, but the current administration owes too much to the UAW Union to let this happen.
Keep in mind that the taaxpayers of this country have already ponied up a lot of money for GM and Chrysler.
For now, let's call that dollar amount $30 Billion. That is $30 Billion spent on 2 companies who control about 33% of the US market Share. As the market this year is going to be about 11 million vehicles at the highest projection, this is 3.3 million vehicles.
That works out to $9000 per vehicle.
Ok ... let's let that simmer, and look at a real stimulus package and rescue plan.
1. Tell GM and Chrysler to file for Chapter 11 bankruptcy protection. The Feds will offer to cover warranty costs during this time period. Compared to the cost of the bailout, this is less than a penny on the dollar.
2. Appoint Mitt Romney to negotiate the terms of the re-emergence from bankruptcy. He is a capable businessman, has Michigan roots, and it would also serve to bring bi-partisanship into the equation.
3. Ford would voluntarily agree to abide by the same rules as are placed on the other 2 companies.
4. The blue collar employees would get the same compensation plan that Toyota and Honda employees get. While we are at it, the Union officials would be out of a job. They add nothing of value. I will personally offer Mr. Gettelfinger a job selling cars at our Ford dealership.
5. The white collar work force would be pared to the commensurate size and pay packages as Honda and Toyota have here for their North America work force.
6. Make zero interest loans available to the "big three". Stop with the "Here's a check, get back to us in 60 days with a plan" stuff.
7. Offer a $5000 Tax credit on any "Big three" purchase and a $2500 for a non "Big three" purchase.
Now watch the showrooms fill with customers wanting cars.