It is hard for the big 3 to compete with Honda and Toyota. They start at 30 to 40% more over head before a vechicle is even produced. They have begged the gov, to cut pension plans, insurance, and restructure from retired employees way back to now. I doubt they can compete with the way the new world runs today from where it use to. They will keep gobbling up free gov money to just keep the lights turned on but for months and even years now they say they are changing and won't ask for more money. They keep on.
The only solution is probably let them go under and take bankrupcy. This way they can get away from union run, restructure all new insurance and health plans, and try to start over knowing they must compete with the Japanese as they have to cut the cost of rolling out a car and can not keep a 40% more over head than the Japanese. It isn't going to be good as i know people now that are not working for the big 3 but mak gaskets, hoses, and other parts and are big companies but there work revolves around orders from the big 3 and more. Some of these companies and they are not small, some have already taken bankrupcy and tried to restructure. They have cut employees big time but within the next 3 weeks i know people that are engineers with college degrees have been told, take a buy out. This is getting paid one years salary, your insurance last 6 months and then you are on your own. So you are sent home and get one years salary.
These are people that have been with the co 10 to 25 years. These car parts co's are trying hard to be sold off now. Co's from Germany, Japan are over here looking at alot of these co's to buy now as they are begging to be bought out. If these employees do not take this deal, when the co is sold or they fold, they get nothing. Unless some of these co's are bought out and a firm from Germany or etc stays in these same towns in the usa and keep alot of these employees on. The problem, is it isn't much orders being called in to keep these employees busy because the big 3 are folding.
In the end, it is a big mess and you are going to see alot of car dealerships fold also in your local towns. It is ungodly how many people to car industry employees in the usa. That fill parts for the car cos.
This is bad to say but i feel the only hope for them is to take bankrupcy and restructure. They can't run a business like they did in the 1920's to 1950's. They must step up to year 2000 and over and compete with a global car market. The co's are still structured for back in the 1950's. The gov has to stop this wild spending spree and throwing good money after bad. This money alone won't save the big 3, they need much more than this money.
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