And wouldn't ya know it, it's election year and Michigan is a swing state. Whoopee! Let the fiat money roll.
Throwing good money after bad is generally not a welcome idea. The Amerikan auto industry's anemic performance and bad reputation overall will not improve because of this. What do politicians know about economics that we don't?
Propping up rotting sheathes of wheat in this manner will only delay the implosion and needed market asset reallocation. Ideas like this don't help, either. I mean, both GM and Chrysler are bankrupt shells, and they want to join forces to create one even bigger bankrupt shell? The Kool-Aid must be running wild in Detroit.
Let the foreign companies take over Detroit. It is only fair for them to reap the success of scraping what assets they can from a vanquised competitor. After all, they seem to know how to produce and sell a better vehicle than the welfare agencies-disguised-as-companies known as Ford, GM, and Chrysler.
The not so Big Three have done this to themselves - by caving in to the bloodsucking unions time after time in periods of good, and letting innovation, foresight, and intelligence vanish among the salaried ranks as dickheads jockeyed for comfortable positions in increasingly bureaucratic, government like organizations where work was only a nebulous concept, but the paychecks were fat and secure. It has been a race to the bottom, predicated on subsidy, big business style.
These companies were once the largest in the world. At one time, if you can believe it, GM had 50% of the market to itself (in the 1970s, when American cars were cool and actually well-made). They have been gutted and garroted like fillet of fish - the parasites leeching off their fattened carcasses until we have reached the point where a company like GM is hemmoraging $1 billion in cash annually, just to stay alive.
So now it has come to this: it is estimated that at minimum the companies could cashier one-quarter of their remaining workforces, or even file outright for bankruptcy and be sold off in pieces.
This is again the end result of arrogance, stupidity, and the exceptionalist mentality. Typical Amerikan sitting on one's ass and playing dumb (since Amerika is rich, White, and entitled to it!) while the thrifty nations of color play end run around the once towering American dominance.
"This is America! We're the best in the world! We're too big, rich, and White to fail! Fuck yeah!"
Fuck yeah, indeed.
If anyone has been to Detroit lately, they would know what kind of a basketcase and wasteland the place is.
And anyone expects innovation and wealth creation to somehow evolve from that??
Throw in the towel, Detroit. The game is up. Your parasitism has reached its endgame. Now bear your final starvation like the maggots you are.