Posts Tagged ‘volt’

Bailout of Auto Industry

November 15, 2008

The American Economy is no longer good at substaining industries for the long term.  The short term pressure to satisfy Wall Street every quarter does not allow companies to survive long term in financial crisis.  The auto industry depends heavily in financing for consumers to purchase the cars, and credit to pay suppliers for the cars they manufacture.  In addition the capitalization of the auto industry has been battered by the terrible news of quarter ending results. 

Obama saves industry, Wagoner must go.

Obama saves industry, Wagoner must go.

The long term effect of General Motors collapse could make it more difficult for confidence to return to the American economy. 

Here is the point I want to make.  The American economy is much more diversified than before, and an auto company collapsing is not that hard to absorb.  The U.S. Auto Industry needs to make longer lasting and environmentally friendlier cars.  A bailout is only going to produce more transportation for example F-150 that has a bad starter after 3 months from the date of purchase from a shiny dealer. 
Detroit stop making cars that are not lasting, and perhaps you would find more sympathy from the U.S. Government.