Even if they are bailed out it doesn’t change the fact the business modle is broken. If Toyota can make the same car for 25% less how will GM compete?
If they file Ch 11 they are off the hook for all the pension/healthcare benefits they owe to former employees and their families.
I do feel bad for these people who work or worked at GM and Ford but if we bail them out do we honestly think they will somehow become a profitable venture?
As long as they have to pay these insane union benifits they will be in this same situation.
We either need to let them go bankrupt or get it over with and nationalize them. My vote is bankruptcy.
[quote]DB297 wrote:
They have lost about $70B since 2004.
They have recieved income tax credits of $5.8B in 2005, $3B in 2006, $1.8B in 2007 and over $18B ytd.
I doubt not taxing them is a viable alternative since we haven’t taxed them in a few years. [/quote]
I was thinking more long term, IF they survive. Others are bringing up the costs associated with Unions. So, I figured I’d throw in a 0 tax on saving, investment, and income plea.