GM and Chrysler: Hasta la vista, baby
In earlier posts, I've urged federal help for the automakers. It would be a calamity to lose this manufacturing backbone, which especially props up what's left of the middle class in places like Michigan and Ohio. There was a large "if," however — if the automakers fundamentally changed their business models to focus on green technology and building transportation for the 21st century beyond automobiles, particularly transit and rail.
Not surprisingly, none of that is coming true despite GM already receiving $13.4 billion in federal loans and Chrysler getting $4 billion. About the best GM can do is phase out the evil Hummer. Otherwise, it's business as usual and worse: cut 47,000 jobs worldwide, shut five more U.S. factories and phase out Saturn, the brand launched in the late 1980s as the reinvention of General Motors.
There comes a time to let go. It will be painful, but it's time. We need to let GM and Chrysler fail.
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