Autopia.org - View Single Post - Should the government bail-out include domestic automakers?

longdx · 11-14-08, 06:42

I find the statement from the EU very ironic. France has assisted in essentially subsidizing its auto industry for years until they were able to be profitable (re: Renault, Peugeot, Citroen,. In Germany, Porsche, VW, Audi all have an interconnected relationship.

The essential problem with bailouts is that it rewards failure. IF the Big 3 receive such a bailout, then there needs to be stipulations of how the money is to be appropriated. The Big Three do not have a problem building reliable cars, its building cars in a cost competitive fashion (re: legacy costs). They have to overcome decades of shoddy workmanship, shady dealer networks, in a business model that relied of rebates/incentive rather than competitiveness to move metal.

11-14-08, 06:42	#103 (permalink)
longdx Registered User longdx is offline Join Date: Sep 2008 Posts: 456	Re: Should the government bail-out include domestic automakers? I find the statement from the EU very ironic. France has assisted in essentially subsidizing its auto industry for years until they were able to be profitable (re: Renault, Peugeot, Citroen,. In Germany, Porsche, VW, Audi all have an interconnected relationship. The essential problem with bailouts is that it rewards failure. IF the Big 3 receive such a bailout, then there needs to be stipulations of how the money is to be appropriated. The Big Three do not have a problem building reliable cars, its building cars in a cost competitive fashion (re: legacy costs). They have to overcome decades of shoddy workmanship, shady dealer networks, in a business model that relied of rebates/incentive rather than competitiveness to move metal.