Submitted by OhSnaps!
So, the government in the end decided to bail out the Big 3 motor companies of the US: Ford, GM and Chrysler, with a nice, ripe figure just shy of $17 billion. Fantastic; people still have their jobs, social security isn't losing a massive amount of depositors, and the American Dream is still alive.
I wish the government had done a little market research before they decided to gift a federal loan to these companies. For the last...umm...I don't remember how many years now, Toyota has been the American favorite brand of car. And though the American car companies produce a seemingly viable product - who really drives Fords, Chrysler's and GM's?
American cars brands have been fighting tooth and nail for marketshare in the modern world since "imports" were introduced to Americans. Since then, the American car companies have sought after to acquire or merge with non-American brands to expand marketshare and what I'm assuming was a move to make themselves look prettier to Americans. Daimler-Chrysler was a merger between Chrysler and Mercedes-Benz (a German based car company) in 1998. Ford owns brands such as Aston Martin (English based car company), Jaguar (English based car company), Land Rover (English/Welsh based car company) and Volvo (Swedish based car company).
While I will note, in fairness, that American car companies have done their share to stay in the spotlight alongside the import brands and have gone to great lengths to make their cars economical and environmentally resposible - they're still second best, if that.
So when I came accross this article today [follow the link: http://money.cnn.com/2008/12/23/news/companies/auto_stocks/ index.htm?postversion= 2008122312 ] , I wasn't suprrised to read what it said.
I am appalled, however, that the government chose to prolong the inevitable - which the cost, would inevitably come out of MY pocket (and yours too).
I think that the American car companies are experiencing the ebb and flow of capitalism and big business. Nothing lasts forever - we all know this. Businesses come and go - and while its normal to compete for your place in the world, particularly in business, the day will come when you must close that file and move on, cut your losses - that sort of thing.
It's natural - I think. Like Darwin studied and theorized, it's survival of the fittest. It's a dog eat dog world out there, and if you can't hack it, maybe you should rethink what you had planned because it obviously isn't working. So maybe that should've been the fate of these 3 car companies. Don't get me wrong, I'm very patriotic, I love my country and love the American dollar. While, it sometimes burns me to see my hard earned money going into some Japanese dude's pocket (because I happen to really like Nissan's) they, at the end of the day, provide a better product.
Will the bailout help prevent these companies from going bankrupt? I highly doubt it. Would the benefit outweigh the cost? Don't think so. It seems as the years go on, these companies are doing progessively and consistently worse in their annual reportings. (To be fair, Toyota is anticipating reporting a loss for the first time since 1950 in their upcomping reporting period.)
It's a lost cause!! Why, oh why, goverment, would you help this already painfully sinking ship? Could the money have not been better invested elsewhere where the return was almost gauranteed and not at a diminishing rate? Look at our economy!!! Don't you realize how we GOT HERE? Borrowing money isn't FREE!!!!
Fund our future, please! Stop trying to preserve the past. Our children will lead us out of this, if only we give them the opportunity and tools to do so.
You're shooting us in the foot, I hope you realize.
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