Repper

Wall Street Breakfast: Must-Know News

The problem with the domestic automakers (besides the current economic woes effecting every automaker) is not how they’re currently run, nor lack of innovation, nor the quality, appeal (if you can discount prejudices), or fuel efficiency of their products. They have corrected and continue to improve those things that have been problems in the past. The problem boils down to 2 things:
1) Higher structural costs than competitors including huge legacy costs due to huge increases in health care costs and a huge retirement population.
They have tried to stem these costs by restructuring their labor agreements and benefit offerings, but those changes will take some time to realize.
2) A large portion of the American consumer population and media who refuse to give up promoting the pervasive misconception that US automaker don’t build good products, and they won’t even consider a domestic vehicle when they go to make a purchase.

Now I agree that any cheap loans from the government should come with heavy concessions to help ensure sustainability and payback of those loans (with interest), but don't discount the changes that have already been made by these comapanies. The facts are that they have been working hard doing the right things.