Should we or shouldn't we? That's the question on everybody's mind.
After all, it is the taxpayer's money that could potentially save the three auto giants (Ford, Chrysler and GM) from bankruptcy.
The 1979 bailout for Chrysler does indicate a "yes" decision won't be regretted.
However, many skeptics are on the fence regarding Chrysler.
The auto circle is in the know about its owner's deep pockets, so why are they expecting help from the government? Where is the faith in their businesses to turnaround for them? Besides, it doesn't help to know that the three CEO's from Ford, Chrysler and GM flew to the capital to discuss the issue in their own private jets.
Wonder why they didn't take to the road in their own creations? The point is there are some reasons for the government to help them out.
* It Worked For Chrysler The US government offered the automaker a 1.
5 billion dollar loan.
The group turned around and paid back the loans on time.
Although the initial post loan days were disappointing in terms of innovation, they did go on to make some of the best cars available in the country today.
* Saying No Could Mean More Job Losses No matter how much we hate huge enterprises for their monopolistic attitude and manipulative plays, the bottom line is that they help place food on the tables of millions of people.
Restricting the funds will only lead to more layoffs and cripple the employment scenario further.
And we know better than to do that in this recessionary time! * Responsible For The Auto Revolution There's no denying that.
Whatever, the current situation of the automobile industry it is due to these three giants.
GM was solely responsible for bringing in a renaissance in the car industry with models like the Cadillac and GMC Acadia, and over the years, Chrysler has designed some of the best front-wheel-drive cars.
Pay and Help Now that we know some of the reasons, what is the best way to go about it? First, the government gives the money in the form of a loan and not as a handout.
Second, draw up a plan for repayment and also let taxpayers know how they intend to put the resources to use.
This will give the government and the tax payer better grounds for accepting or rejecting the offer.
For example, if they decide to use the money to renovate the interiors of an existing car-a big NO.
But, if the money is going to be used to produce a better, more affordable line of automobiles-YES.
Also, awareness of the glacial pace of the automobile industry is necessary.
Which means if the automakers are loaned 10 billion dollars today, don't expect a miracle by tomorrow.
It may take months and, in some cases, years for them to get back on track.
And lastly, just because the federal government has decided to pump in the cash, does not give a reason for them to meddle in the production process.
Production and innovation should be left to the automobile industry experts.
After all, it is the taxpayer's money that could potentially save the three auto giants (Ford, Chrysler and GM) from bankruptcy.
The 1979 bailout for Chrysler does indicate a "yes" decision won't be regretted.
However, many skeptics are on the fence regarding Chrysler.
The auto circle is in the know about its owner's deep pockets, so why are they expecting help from the government? Where is the faith in their businesses to turnaround for them? Besides, it doesn't help to know that the three CEO's from Ford, Chrysler and GM flew to the capital to discuss the issue in their own private jets.
Wonder why they didn't take to the road in their own creations? The point is there are some reasons for the government to help them out.
* It Worked For Chrysler The US government offered the automaker a 1.
5 billion dollar loan.
The group turned around and paid back the loans on time.
Although the initial post loan days were disappointing in terms of innovation, they did go on to make some of the best cars available in the country today.
* Saying No Could Mean More Job Losses No matter how much we hate huge enterprises for their monopolistic attitude and manipulative plays, the bottom line is that they help place food on the tables of millions of people.
Restricting the funds will only lead to more layoffs and cripple the employment scenario further.
And we know better than to do that in this recessionary time! * Responsible For The Auto Revolution There's no denying that.
Whatever, the current situation of the automobile industry it is due to these three giants.
GM was solely responsible for bringing in a renaissance in the car industry with models like the Cadillac and GMC Acadia, and over the years, Chrysler has designed some of the best front-wheel-drive cars.
Pay and Help Now that we know some of the reasons, what is the best way to go about it? First, the government gives the money in the form of a loan and not as a handout.
Second, draw up a plan for repayment and also let taxpayers know how they intend to put the resources to use.
This will give the government and the tax payer better grounds for accepting or rejecting the offer.
For example, if they decide to use the money to renovate the interiors of an existing car-a big NO.
But, if the money is going to be used to produce a better, more affordable line of automobiles-YES.
Also, awareness of the glacial pace of the automobile industry is necessary.
Which means if the automakers are loaned 10 billion dollars today, don't expect a miracle by tomorrow.
It may take months and, in some cases, years for them to get back on track.
And lastly, just because the federal government has decided to pump in the cash, does not give a reason for them to meddle in the production process.
Production and innovation should be left to the automobile industry experts.
Source...