Should the American people bail out the big three? Absolutely not. And there are plenty of very good reasons for this. The bailout is now hovering between 40 and 50 billion dollars, which isn't going to be nearly enough for the Detroit behemoths. But the money seems almost guaranteed now – once the CEO's of the big three decided to show up in fuel efficient cars to please the U.S. congress. But that's what they have to do, when they come with hats in hands. After years of paying for massive legacy programs; overpaying their employees with wages, vacations, health care, etc.; selling cars the American people demand less of every year; and a laundry list of other costly problems, they are now, not surprisingly, going bankrupt. But something else is also not surprising. Their competitors are still profitable – even in this economy.
Take a look at the labor cost differences between the companies here.
Writer Daniel Ikensen and USA Today both talk about the “nausea-inducing jobs bank scam.”
Gary Burtless talks about bad modeling, gas-guzzling decisions, and the high cost of unproductive labor.
In “Don't Bail Out The Big Three,” writer Bill Steigerwald goes through a quick question and answer session on some of the most popular and pressing questions.
This auto blog talks about Toyota's expectations for a drop in profit, right, profit, in 2008.
Here's more and more Toyota profit news.
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