Buying the car we can't have

'We have over 135 million jobs in the US. Anyone claiming 10% of American jobs is related to the auto industry would have to show almost 14 million people working directly or indirectly for the auto industry in general. The auto industry as a whole in the US affects a seventh of that, and GM, Ford, and Chrysler would only affect a portion of those 2.1 million jobs.

Well, now the auto industry affects all of our jobs. We’re all coughing up enough money for a down payment on a new car from every family in America, only without actually getting the car. And even if we’d used that money to buy a new GM, Ford, or Chrysler instead of it being a loan, none of the three would have shown a profit from the sales anyway. They’re losing money on every car they sell, and neither management nor labor shows much interest in changing those calculations. They just want a Governmentus ex machina to rescue them from their own folly without having to sacrifice anything … and George Bush just gave it to them.'


- Ed Morrissey; 'Merry Christmas, Detroit, from your already-broke Uncle Sammy.'

Comments

Mnaz said…
toyota just reported an operating loss ..the 1st in 70 years.

The big 3 were already following a bad business model and the govt were saving their (pardon my french) asses on account of the jobs for a while now offering grants.

What would be a solution? Make cars people want would be the perfect start..

Makes you take another look at the humble Maruthi suzuki huh?

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