Detroit is back in Washington DC today with their hats in their hands, looking for a $34 Billion bailout package. What do you think is going to happen at the end of the day? It's almost a sure bet, there will be bankruptcy. From 3 domestic car companies, and the 20+ brands that are controlled in Detroit, we're finally going to see the natural and healthy consequences of market competition. Consequences that have been put off for far too long.
The part that's interesting here is rather than consolidation like what's happened with big banks (merging), the Big 8 accounting firms from the 1980s (that are now the Big 4), this Detroit mess may actually lead to us having more and better domestic car companies.
Sadly that's not in the plans that Ford, GM and Chrysler put out this week. But given the US taxpayer's reluctance to go along with any more bailout loans, and Democrats who control Congress announcing they don't have the votes to pass a bailout, we'll soon be hearing about Plan B.
Bankruptcy.
And then the companies that have a future are going to pull themselves up by their bootstraps and we'll see our US made cars better and stronger than they've ever been.
It's tough medicine, but it's going to fix the problems with the American Auto industry.
And don't believe Detroit for a minute when they tell you that people wouldn't buy a car from a car company in bankruptcy. If the car is good, reliable, and priced right, it's going to sell.
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