No Loans for the Big Three

What makes the Auto Industry different from any other business that would justify pumping taxpayer money into their failing enterprises? The employees and the management have lived high off the hog for many years producing cars that have been sub-par when evaluated against their competitors. Their prices have been higher and their reputation for quality lower when put side by side with the competition in the global automobile marketplace. They have watched Honda and Toyota steal the market from them in North America and have not responded other than to complain and moan. The management buried their heads in the sand instead of being innovative and proactive in the fight for market share. They also lacked courage when facing the steadily increasing demands of the UAW and CAW over the past two decades. Where were these brilliant CEO’s who with their MBA’s were supposed to be on top of the market and in front of the crowd with their business savvy. They and the union membership walked away with millions in salaries, bonuses, wages and benefits while the business slowly sank in the quicksand of greed. They literally killed the golden goose and now they want the taxpayers to bail them out. Of course the auto industry is important to the economy but what guarantees can the big three give that the money won’t go down the same dark hole as the rest of their assets? Every other manufacturing business in Canada has faced the same challenges over the years and if they are smart and have vision they succeeded and if not they folded. No one rushed to bail them out when they made bad decisions. Their complaints of high taxation and over regulation fell on deaf ears and they lived or died depending and relying on their own devises. I have no sympathy for all of these whiners and complainers at Ford and GM who offer no innovative solutions just a large hand reaching out for more of the taxpayers hard earned money. Here’s the advice, a) file for bankruptcy protection, b) restructure your business by eliminating losing enterprises and focussing on those that can provide the best returns in the quickest amount of time. c) Cut overhead expenses to the bone including bonuses d) reopen all labour contracts and get wages and benefits in line with your competitors (other than the big 3) e) dump current management leadership and get some people in with a mandate to build a business that will not only compete but will win in the global marketplace. f) Lobby government to deregulate where possible and to bring business taxes into line with other competing nations.
We live in a free market society and have enjoyed prosperity by doing so. We will again but we need visionaries and strong leadership not beggars and socialists looking to Government for all the answers.