Obama Auto Team in Detroit Considering $22B More in Aid

Good money after bad, I'm afraid. They are going to have to go into CH 11 and re-organize under protection. What emerges will be smaller and more focused with far fewer employees. Throwing more money at it before this happens is merely life support for a terminal patient. They will never get enough concessions or be able to herd the cats of various interests in order to downsize. CH 11 will allow GM or Chrsyler more leeway in doing what they have to do. While in CH 11 they can keep operating so no harm to the employess and supply base in the short run. In the medium term the entire support system for the auto industry will need to shrink as well. It's time to face the music. Left to its own unfettered resources the US auto industry of tomorrow will only sell 8 or 9 million cars per year as opposed to the 14 or 15 of recent years. Praying this isn't true won't help. If there is eventually upside to the 8 then so much the better but don't keep a supply system and operating overhead in place for 15 M output. They will never be able to compete if they do. It really concerns me that there appears to be no one with auto industry experiencen the Obama panel. It's nice to be arm's length but......... Reply