Thursday, November 13, 2008

Big Three Bailout Plans: Pelosi, Reid, and Obama Ride to the Rescue

I read a terrific article in the Wall Street Journal by columnist Joseph White. It was called "Two Car Companies," or something like that It was about the Democrat's cheerleading for a bailout of General Motors Corporation and Chrysler, and Possibly Ford. Of the Big Three, Ford is probably faring the best and has streamlined some of its auto lines. I like the Ford Focus and the Fusion, as well. I like the Edge, too, and the hybrid development they're doing.

The "two car companies" mentioned are the Big Three and the other one, comprised of Honda, Toyota, and Hyundai, which do not have the burden of ancient marketing practices, union bureacracy, and management which hasn't responded to lean market conditions.

The Asian car makers produce a limited number of model, unlike their American counterparts which seem addicted to the practice of "twinning" or making too many different product lines with and endless and confusing variety of options which were dreamed up in the 50s.

With regard to Mr. White's article, I liked the prognosis but I didn’t like the diagnosis. Screw the UAW and the Democrat’s payback to the unions.

Let the car companies re-structure, then we'll see if they can make it on their own. We've all got hurt by the Fanny-Freddie ripoff and other credit default problems. So why then do we have to pour money down a possible hole unless the hole is patched up first?

We’ve got blue-collar death over here in Pennsylvania and no cavalry riding to the rescue.

White's article can be found at http://online.wsj.com/article/SB122608860916209213.html?mod=djemroad

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