Tuesday, November 18, 2008
Headline: Carmaker Failure Would Be Catastrophe, Wagoner Says
Nov. 18 (Bloomberg) -- The U.S. economy would suffer a "catastrophic collapse'' if domestic carmakers fail, General Motors Corp. Chief Executive Rick Wagoner said, as the nation's auto industry renewed appeals to Congress for federal aid.
Call me crazy [Crowd: You're Crazy!], but haven't the domestic automakers already "failed" if they're asking us for yet another huge wad of cash?
I mean, don't get me wrong, I like the idea of saving someone's job, but these guys have fought for years so that emissions laws and miles-per-gallon laws aren't passed, they continued to churn out Hummers (and were rewarded for it) while ignoring hybrid technology that could have allowed for "greener" cars, and they've been "failing" for years because they don't earn more than they cost.
It's math. You don't stay in business if your profits are less than your expenses. And you certainly don't send out shareholder checks if your profits are less than your expenses.
So I'm going to steal an idea that I heard on Bill Maher the other day and suggest that oil companies bail out the car companies. Who better? They've certainly got the cash and I think it's their turn to scratch a back or two.
Posted by Kate at 18.11.08