Should American taxpayers bail out the automobile industry? Automakers headquartered in the U.S. have failed to make products consumers wanted to buy, whether due to a lack of quality, lack of targeting, or a lack of convincing marketing. Democrats in the Congress want to extend $25 billion of the $700 billion bailout bill to reach the “Big Three” automakers (General Motors, Chrysler, and Ford) while the current administration believes the $25 billion should come from a different program.
I receive several emails from public relation firms every day but generally ignore them unless they’re absolutely relevant. Today, I received an email from GM’s public relations firm to explain what would happen if GM were allowed to fail. The email also pointed to a website produced by GM to dispell myths about the company.
I have no doubt that allowing these three huge companies to fail could do more damage to our already suffering economy. If the government decides to extend $25 billion to the auto industry, I hope it is tied to results that show the companies are listening to consumers rather than the oil industry. The Big Three need to shed their reputation, deserved or not, of producing gas-guzzling, unreliable, and unsafe vehicles in comparison to some “foreign” automakers.
Do these companies deserve a $25 billion bailout?
Photo credit: brianc
Updated March 25, 2017 and originally published November 17, 2008.