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Last Updated: Nov 13th, 2008 - 22:25:33 |
Crappy economies cause businesses to go bankrupt, like banks.
We have seen giant banks declare bankruptcy, and we have seen the government focus on stabilizing not only those banks, but also insurance companies facing similar outcomes. These monstrous multinationals deserved the attention, deserved the federal money.
The U.S. automakers also deserve attention, but not by Treasury Secretary Henry Paulson.
No, the consumers will watch (in either horror or glee) as General Motors acquires Chrysler. Then they will watch GM go bankrupt and sold for a fraction of its 2005 net worth. The buyer will probably be foreign.
President George Bush denied government financing to help finalize a GM-Chrysler merger, and GM has halted its talks with Chrysler. Chrysler, in turn, has been negotiating with Nissan for a straight-up acquisition.
Budweiser merged with a European company, and now Chrysler might merge with a European-Asian company. Would that be so terrible?
Meanwhile, GM is struggling with its own empty coffers as
it loses billions per quarter and claims government aid is needed in such dire auto industry downturns.
I think not.
What GM needs is a merger with either Ford (probably won't happen) or a foreign company (a likely scenario). If the latter happens, I guarantee certain patriotic, truck- and sport utility vehicle-owning Americans will turn rabid, undoubtedly criticizing the government for bailing out Wall Street but not the U.S. car manufacturers.
The interesting aspect of this will be whether or not President-elect Barack Obama decides to intervene and take a federal stake in these companies.
Bush hasn't, and I hope Obama doesn't, but things may change quickly.
Whatever the outcome in 2009, GM or Chrysler, or both, won't be self-sufficient. Instead, we may see Ford take huge strides ahead of both companies and begin dominating the American market.
One thing ought to happen, though: GM's Hummer should be discontinued, destroyed or otherwise warped from existence. Its brand of extra-large SUVs has only wasted the world's gasoline.
Hummer's failure would confirm GM's naïve and idiotic business planning. GM wasn't alone in its retardation.
Every American auto company was stubbornly designing cars to get 12 miles per gallon while the Japanese companies were busy perfecting their hybrid technologies. The stubbornness was so blatant that it makes me wonder how much money the U.S. companies were taking from the oil titans. Before GM, Ford and Chrysler realized how screwed they really were, it was too late, and they were drowned (still are drowning) in their millions of SUVs and trucks, of which they produced millions. Ah, to drive by a car dealership with a lot full of giant, gas-guzzling Excursions. It's great justice.
Indeed, I see gigantic SUVs and trucks on the road, and I vigorously curse them with words. I visualize their flaming wreckage. Consumers are at fault, mostly, for buying the vehicles back when gas was $1.50 per gallon (and for being reckless drivers and killing people with their 6,000-pound behemoths).
This global economic disaster has — unfortunately — caused gasoline prices to plummet, and now I fear SUV drivers will be encouraged to go buy a Suburban and romp around the city at 10 mpg. If you are one of these people, resist the urge and buy something modest, something that won't waste your money. Don't try and resuscitate GM and Chrysler; let them die in violent convulsions.
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