So, well, they deserve to lose. And they're losing. $7.7 *billion* cash disappeared last quarter from F. The rule going into a recession is that you have to hoard cash and spend it frugally to get through the downturn. GM and F are burning it like mad.Their business seems to be:
A reasonable question to ask is what to do about the massive unemployment that would result from letting these companies fail. We don't exactly have much of a safety net under working-class AmericansWe could give each GM employee $83,000 cash and it would still cost the government less then bailing out those companies. A more sensible approach would be to hire them to work on infrastructure projects or investing in new companies that could buy off the old assets from F and GM at bargain basement prices.
but the one thing they absolutely would not do is build something that wasn't a huge wallowing shitmobile with a third of the useful life of a Honda. In the real world of business, nobody gets a 35-year reprieve when they blow it. But they did, and they squandered it. Fuck them.Actually Quality (Job #1) has gotten pretty good at ford recently (have you driven a ford... lately?). But seriously, despite the fact that it lines up with their 1980s slogans, fords quality has gotten pretty good lately.
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posted by neuron at 6:34 PM on November 9, 2008 [4 favorites]