12-02-2008, 06:20 PM
lafinfil wrote:
I just listened to an interesting interview with Dan Neil, the LA Times automotive columnist, on NPR's "Day to Day"
The interview was based on his column from todays issue, where he proposes the nationalization of GM.
His premise was that rather than bail them out with loans and let the current management continue,
that we (the taxpayers) should just buy the company (estimated 32 billion) and use the opportunity
to start building the hight efficiency types of autos that the country needs right now.
He addresses the socialism aspect by pointing out that by bailing them out we are pretty much doing the same
except we (taxpayers) will not have any control over the management. He proposes that once
it has been turned around that the comapany can be sold at a profit.
This was done by the federal government over 30 years ago when it took over bankrupt northeastern railroads and created Conrail. Conrail went public with its stock in the 1980s after becoming profitable, netting taxpayers a nice sum of dough.
lafinfil wrote: His argument is also since the Big Three are dealing with legacy cost in terms of healthcare and retirement
that they are at a disadvantage when competing with Japanese companies which generously subsidizes those cost
(not including American built I assume)
Interesting idea - http://www.latimes.com/news/opinion/comm...3298.story
I know that GM already turned over the administration of pension and healthcare costs for its retirees to the UAW.