Brad Ferris

Who Might Benefit From Detroit's Failings

I think everyone benefits over the long-term if GM fails. Clearly there will be hardships in the short-term, but what's really at issue is the viability of a business. Chapter 11 is the solution to that, not more money for restructuring.

Buy, Sell or Hold: GM's Too-Big-to-Fail Myth

Unions, management, government and a host of other contributors have all aided in the demise of these three former auto giants. Its difficult to place blame solely on one and we shouldn't dwell in the past to solve the problems of the future.
The bottom line is that the 3 NA autmomakers have a cost base well above their competition, have not been on the leading edge of innovation and have far too much supply.
If all three of those components are not addressed in any federal funding agreement then we'll find ourselves right back here shortly once again.
The prudent financial decision would to be to allow these companies to file for chapter 11 and protect jobs by providing interim funding for continued operations but making it very clear that a sustainable business model is the only option. The government should take an invested interest if they're putting taxpayer money into these failing businesses and the management of all should be dismissed. There are a number of past executives from 3M, GE and other industrial giants who don't need to know how to build cars to build a functional business globally.