The American People do not want the auto industry to be bailed out. According to a poll conducted by CNN, 61% of Americans surveyed are absolutely against any federal bailout of the American auto industry. Additionally, the majority of voters in every single region of the country are opposed to these bailouts, including 53% of people in the Midwest (these are the people most likely to be affected by any auto industry bankruptcies). 70 percent of Democrats, 62 percent of Independents, and 55 percent of Democrats are opposed to these bailouts. Simply put, this is an issue on which there is an overwhelming amount of agreement. The American people do not want to see their money wasted on bailing out failing automakers.
Chrysler is a privately owned company which is 80% owned by Cerberus Capital Management and 20% owned by Diamler AG. Both of these companies have billions of dollars in cash on hand, yet the parent companies of Chrysler have refused to inject more of their own money into their failing subsidiary. If, as the automakers are claiming that they only need money to temporarily get them through an organization process, why wont the owners of these companies temporarily inject the money into the companies? Probably because they know that it is a bad investment and that they are not likely to receive their money back. If the owners of Chrysler are unwilling to put their own money into Chrysler, why should the American people be FORCED AGAINST OUR WILL into spending OUR money on a bailout? Additionally, the Ford family has billions of dollars in personal assets. If they want to save their company, maybe they should use their money.
Speaking of Ford, of the Big 3 Automakers, Ford is the only one not in horrible shape. Since taking over two years ago, CEO Alan Mulally has begun to implement a vast turn around plan called “The Way Forward.” This plan has been relatively successful, and has already resulted in billions of dollars in cost savings, and will continue to help the company. As a result, Ford is the only American automaker not in immediate risk of collapsing. According to company reports, Ford expects to turn a profit in 2011, while GM and Chrysler haven’t bothered to give the American public any timetable for when they will be able to return to profitability. Both GM and Chrysler are said to be within weeks of collapse, and GM has already hired a team of bankruptcy lawyers. By bailing out GM and Chrysler, the government could be hurting Ford’s prospects of recovery.
Congress, President Bush, and President-Elect Obama should respect the wishes of the American People and allow these automakers to fail—or succeed on their own.