Repper

Big Two Bailout: Likelihood of Success Is Slim

"#1) People will be hesitant to buy a car without assurances that the company is a going concern.

Well, wouldn't you be more comfortable buying a car from a company that you know is backed by the US government with skin in the game and a more sustainable model? Under the current proposal, we may very well have to eventually cut bait, and consumers know this. GM may never start selling cars at a sustainable rate again under the current proposal."


You make a huge and (IMO) very wrong assumption here. You assume that consumers realize that the vehicles would still be backed and that the company's future is just as healthy. The fact is that typical consumers don't know much about big business and will shy away from any uncertainty because there are so many other options.