Re: FORD CEO ALAN MULALLY TESTIFIES ON CAPITOL HILL
Quote:
Originally Posted by Alloy Dave
KR, I agree with you in concept...but one thing I'd like to add. I think it's important to understand the facts. One fact is that if any company goes bankrupt, we as taxpayers do pay for it in a number of ways.
1) If the pension funds fail, then the PBGC (Pension Benefit Guarantee Corporation - A gov't enterprise) pays the pensions...and the taxpayers are funding that.
2) If the big 3 are out of business, guess what would happen to the price of any other car you buy...yes...it will increase due to less competition.
3) If you live in an area where autos are made/supported (in other words, suppliers exist there), you likely will see damage to local housing markets.
4) Unemployment will increase, and the payouts will come from gov't funds.
the list goes on and on. So sometimes we must think of the DIFFERENTIAL costs between two alternatives.
I'm still with you as you see in my post...but just pointing out a few other factors.
I think there will be significant short-term pain if they fail. However, I think the long-term gain is that companies 10-20 years from now will be stronger because of it...they will learn a lesson about the fragility of business, satisifying customers, making good business decisions, etc.
Dave
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Well said, Dave.
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 Of course we still want a DOHC alloy big block!
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