The businessman-turned-mayor agrees: Throwing tens of billions of additional taxpayer dollars down the Ford (F), General Motors (GM), and Chrysler rat hole won’t won’t fix anything. NY Post:
“I don’t know where it stops,” [the mayor] said on his weekly WOR radio show. “It’s hard to see how they get their act together. . . They haven’t built the kinds of cars the public wants.”
The mayor isn’t alone:
A growing chorus of investors believes GM should be put into bankruptcy protection to resolve its bloated labour contracts and debts, and start fresh with new managers who’ll make cars people really want.
“Reorganization will end GM’s inefficiencies but if the government props the company up with more bailouts, it will just extend the inefficiencies and let them keep building cars no one wants to buy, at highly overpriced labour,” said Peter Schiff, president of Euro-Pacific Capital.
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