[sgarnett]

The Senate, UAW, et al, just gave up (ie failed) on reaching a compromise a few minutes ago.

I don't know how GM will come out after bankruptcy (they just hired the bankruptcy lawyer), but the stock market futures are looking ugly tonight. It actually held up well through some dismal recent employment numbers, but I suspect tomorrow is gonna be ugly. Rebuilding my retirement is going to mean austerity and no new cars for a very long time, and I suspect that will be true for many others. That can't be good for any automaker.

I'll admit I wasn't convinced that bridge loans to March could solve the problems for GM, so I don't claim to know what the right answer was. Nevertheless, this is going to be a big kick in the teeth for the economy.

This post has been edited by sgarnett: Dec 12 2008, 04:07 AM

[00 Trans Ram]

Looks like everyone is getting hit. I hear that the Euro car makers are asking for many of the same thing that the American ones are (bailout, loans, etc.). Now Honda is being hit.

I think the car companies (not just American ones, either) are going to have to make some changes. Stop paying pensions. Cut the fat on administration. Make a flatter corporate structure to enhance efficiencies. Cross-train employees so that they can perform more than one job function. Automate. Pull salaries back in line.

Then comes the hard parts - make a car that people want to buy and price it cheaper than the next guy. This isn't the 50's. I don't think Americans (or any other nationality) is going to pay more for a "X" brand car just because of where it's made.

Besides, who knows where cars are made? My Trans Am was assembled in Canada, with a gazillion Mexican parts. But, it's an American car. My G8GT is made in Australia, with who-knows-where parts. But it's an American car. Whereas my neighbor's Toyota is made in America, with who-knows-where parts, but it's foreign?

Back in 2000, you were in for a world of hurt if you were in the tech industry. Today, you're going to be in a world of hurt if you're in the automotive industry. It's not nice, but I think that's where we're going.

Don't worry - I'm not immune, either. I'm in healthcare. Not that people are going to stop getting healthcare, but I think the landscape and the direction healthcare is going is going to make it a very NOT FUN place to work in a few years.

For my part, I'm doing what I can to help - I bought a new Saturn in 2006, and a new G8 and Honda Pilot in 2008. I think my new-car-buying days are over for a while, but I tried!