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November 26, 2009

They got themselves into this mess

I don't believe the government should bail out the auto industry since they not only got themselves into this mess, but they will likely use the bail out money in much the same way as the financial sector did- to give top executives bonuses and to purchase other companies, both of which are not things to do when you're about to declare bankruptcy. GM in particular has just been stupid with its design decisions. 10 years ago they had a fully developed and working electric car which they produced several thousand of and leased them to individuals in the LA area, and people LOVED them. But GM decided that at the time they could make more money selling gas chugging SUVs and therefore recalled every electric car on the road to be crushed and use for scrap metal. Had GM only continued to produce the electric that so many people were clamoring for, they could have completed avoided the situation they are currently in. Businesses should fail for making such stupid decisions, particularly ones that continue to destroy the environment.

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