Writing in the NY Times today, former Republican Presidential candidate Mitt Romney pens a fantastic piece on the problems and potential solutions for the US auto industry. And no, bailing them out is not a recommendation.
employer and as a hub for manufacturing. A managed bankruptcy may be
the only path to the fundamental restructuring the industry needs. It
would permit the companies to shed excess labor, pension and real
estate costs. The federal government should provide guarantees for
post-bankruptcy financing and assure car buyers that their warranties
are not at risk.In a managed bankruptcy, the federal government
would propel newly competitive and viable automakers, rather than seal
their fate with a bailout check."
Read the full piece here.