Fam62c

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

This is the same problem the major airlines have and, frankly, at this point it doesn't matter how the BIg-3 got where they are or who's fault it is; all that matters now is what to do going forward. I think they (GM at least) aren't going to make it with a temporary loan; they need to do a total restructuring quickly that allows them to modify leases, agreements and contracts and transfer their pension obligations to the PBGC like the major airlines did. A pre-planned bankruptcy filing is probably the only way for GM to quickly do what needs to be done. At the rate GM burns through cash they will just burn through any financing that the government provides. Chapter 11 is the only way to stop the bleeding and make fast, permanent structural changes to GM. A band-aid isn't going to help here, GM needs major surgery or the patient will either die or live on in a vegatative state made possible by tax payer provided life support.