The Opinion Blog

Take GM, Chrysler off taxpayer life support

Ripped from the wires ... Cal Thomas argues that further federal loans to GM and Chrysler would amount to good money after bad:

By Cal Thomas

General Motors made my first car. It was a 1955 two-tone Chevrolet with stick shift and black tires. It had an AM radio and air conditioning, if I hand-cranked the window down in summer. It came with bench seats, the better to have your date close to you. I bought it used (this was before cars were "pre-owned'') in 1961. My Dad co-signed the $750 note, which I paid.

Let bankruptcy court sort out GM's problems

From the afternoon e-mail ... An analyst at the Ayn Rand Center for Individual Rights argues against channeling more government loan money to General Motors:

By Thomas A. Bowden

General Motors, having sucked up $9.4 billion of taxpayer cash since Christmas, now desperately craves the remaining $4 billion authorized by President Bush for disbursement in February.

Auto bailout dumps taxpayer protection onto Obama

Ripped from the wires ... The Philadelphia Inquirer argued Sunday that President Bush's bailout of GM and Chrysler, while economically necessary, falls short on taxpayer protection:

President Bush's bailout of General Motors and Chrysler prevents an economic calamity, for now, and dumps the responsibility on his successor to enforce the vague terms.

UAW deserves better from the Republicans

Ripped from the wires ... Harold Meyerson explains why some in the GOP feel such pathological hatred for the United Auto Workers:

By Harold Meyerson

In 1949, a pamphlet was published that argued that the American auto industry should pursue a different direction. Titled "A Small Car Named Desire,'' the pamphlet suggested that Detroit not put all its bets on bigness, that a substantial share of American consumers would welcome smaller cars that cost less and burned fuel more efficiently.

Memo to Detroit: Buyers yearn for sexier cars

Ripped from the wires ... Froma Harrop suggests how Detroit automakers, if they survive, can distinguish themselves from their foreign rivals:

By FROMA HARROP

The American "love affair'' with cars is close to dead, then-Ford Motor chief Bill Ford lamented six years ago. "In California, people used to write songs about T-Birds and Corvettes,'' said Henry Ford's great-grandson. "Today, they write regulations.'' Ford had earlier shocked Detroit by admitting that sport utility vehicles caused environmental problems.

Ford got it, even before the recent spike in gasoline prices sent consumers stampeding out of gas-guzzlers. As the Big Three automakers again ask Washington for help, Ford Motor is the only one not begging for an immediate taxpayer bailout.

Chapter 11 the Big Three's best survival hope

Ripped from the wires ... An esteemed economist guru offers the best explanation I've seen on why Chapter 11 bankruptcy is the best alternative for the U.S. automakers:

By Martin Feldstein

The Big Three U.S. automakers need more than an injection of $25 billion from the federal government. Because of their ongoing losses, they would burn through that money in less than a year and would soon be back for more.

General Motors, Ford and Chrysler can make excellent cars, but they cannot sell them at prices that are competitive with the prices of cars produced in the United States by Toyota and others or with the prices of cars imported from Europe and Asia. The basic reason is the labor costs imposed by union contracts.

Auto bailout really about saving Main Street

Ripped from the wires ... the United Auto Workers union president explains the warm, fuzzy side of a federal auto-industry bailout:

By Ron Gettelfinger

It's time to stand up for the Main Street economy.

In the face of a global credit crisis and a worldwide economic downturn, U.S. auto sales have slowed to a crawl. As insecurity spreads throughout the economy, consumers are delaying major purchases -- and those who do visit auto showrooms are not finding credit available on reasonable terms.

Why Detroit doesn't deserve a bailout

Ripped from the wires ... Tom Friedman makes a powerful case against a government bailout of the U.S. auto companies:

By THOMAS L. FRIEDMAN

Last September, I was in a hotel room watching CNBC early one morning. They were interviewing Bob Nardelli, the CEO of Chrysler, and he was explaining why the auto industry, at that time, needed $25 billion in loan guarantees. It wasn't a bailout, he said. It was a way to enable the car companies to retool for innovation. I could not help but shout back at the TV screen: "We have to subsidize Detroit so that it will innovate? What business were you people in other than innovation?'' If we give you another $25 billion, will you also do accounting?