AUTO-Bailout

I should have posted this yesterday before the official plan was released:

PS: I agree Rick Wagoneer needed to be SURGICALLY separated from GM...



I've said it before (HERE, HERE, here, and HERE) :

that we MUST MUST MUST change the marketing, as WELL as the focus of the car companies.

And as I have said before.. (here!!!!)

ALL the companies need to go through a PRE-Packaged (5 minute) bankruptcy.

This will allow the companies to scrap both the labor AS well as the DEALER contracts


Detroit needs at least 75% fewer auto dealers.

GM can still have 5 car brands, but only ONE dealer network that can sell all 5 cars.


doy. This way they can CLEANLY eliminate almost 90 years of excessive marketing and dealers that happened.

It's time to ask the DEALERS (as well as GM itself) to take part in the bloodletting. NOT just the employees.


SO based on this, the Obama plan laid out today lacks certain appeal

However it DOES say that the Federal government will back the warranties of cars sold in the meantime (a great idea-- I said it last november!!!!)

UNLESS a federal bail-out (or takeover) of the car companies include DEALER givebacks or REMOVALS of dealerships the US Auto industry CANNOT be saved...

There are WAY too many dealerships in the US car industry to survive.

Perhaps a reduction from 7 (or 2 for chrysler) dealer networks into ONE each would be a start, and make those dealers have a 30 mile territory instead of a 5 mile territory.