eCommerce Blog 2

In the WSJ article U.S. Could Take Stake in Big 3 by Greg Hitt he talks about the latest update of the bailout bill for the US big 3. The main parts Hitt focuses on are the inclusion of a "car czar" as well as safeguards to protect taxpayers and more checks and balances. Currently, Hitt reports that one of the major problems holding the bill up is the lack of oversight and power given to the "car czar". Additionally, some politicians want to see a long-term viability plan and if the auto companies are able to follow the plan they should be given the money incrementally.
The reason I decided to write in response to this article is because it irritates me that companies think they can operate so arrogantly then when things get tough ask the government to bail them out. After reading other articles on the Big 3 I found it amazing how unadaptive to the business environment these companies were and can't understand why the US government would provide funds to help companies that didn't help themselves. In my opinion it's not the bill that's faulty and needs work it's the business model that these companies operate under that needs to be corrected. No amount of financing is going to help a business that is set up for failure with its current business model. In my opinion I'd like to see the government let these companies go under then reorganize in bankruptcy. With the current bailout there is really no change to the operational structure they're still keeping labor unions and the ridiculous amount of benefits they receive. Ultimately, I think this problem isn't going to go away and we will be dealing with it again in the future.