General Motors Bailout -- And for What?

The US government is thinking about bailing out the 3 troubled car companies, at a cost of $17 billion (£11.6 billion) to the US taxpayer. Just like what was done for the banks. And where did this money come from? A financial reserve, which was intended to pay for education, and the finance sector.

This bailout is only half what the companies demanded; $34 billion (£23 billion). Have the senate won a bargain? Have they kept their loose change? ABSOLUTELY NOT! This bail out will make no difference what so ever to the behaviour of General Motors, Ford, and Chrysler. All that has been done is time being bought! The car companies are still going to go out of business and thousands of US workers are going to be out of a job.

Its not just reckless projects and gas guzzling cars that have brought the demise of the car industry! Cars have been constantly mass produced despite falling sales over the past year! Did they slow down operation? NO! They kept full steam ahead! More and more consumers are feeling the pinch and are aware of the green issue; thus more economical cars are becoming flavour of the generation. AND, More GM than the others, still have a pension scheme that pays 95% of workers salary! No wonder they are losing money!

To add insult to injury, all three executives turned up to Washington in private jets, despite and economy falling apart and their own businesses going bust! THEY SHOULD HAVE CRAWLED ALL THE WAY TO THE OFFICE! Despite turning up a day later in and electric Chevrolets, I am not convinced lessons have been learned.

If the US car giants are going to survive, thins are going to have to change! People should be laid off, but so should the executives! Costs should be cut! Buildings should be down sized! Production should halt until the economy picks up!

Its not rocket science! When will the yanks ever learn?