I think that the US auto industry's fundamental problem is that their core
'product' or mission was elevating uneducated factory workers into the
middle class rather than making great cars/trucks. 

That being said, I think that the government will assist the US auto
industry, but with significant strings attached. Perhaps with Democrats
controlling both the White House and Congress, the government response will
be more than just a handout, well-wishes and golden parachutes.

I can see the GM/Chrysler consolidation possibly going forward. I could also
see Chrysler simply ceasing to exist. Have you seen the new Dodge
Challenger? If that is their best work, then they're screwed.



-----Original Message-----
From: Won Lee [mailto:[EMAIL PROTECTED] 
Sent: Monday, November 10, 2008 10:45 AM
To: cf-community
Subject: RE: should the government rescue the auto industry?


No.  The reason the US automotive industry is in the steaming pile there are
in right now are 

1) They make an inferior product
2) Legacy costs

A bailout does not address these problems.  Quite frankly, F or GM going
under doesn't hurt the economy as severely as the banks going under.
Actually, I would imagine that if F and GM went under, Toyota and Honda
would probably open up another factory or two in TN or KY (or wherever their
plants are located) to meet the demand.




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