AUTO INDUSTRY : KRUGMAN SEES LITTLE HOPE

It's never about "building another factory." It's about management's ability to run a business for the long-term; that means quality, fuel efficient cars, that the consumers wants to buy - not only when gas prices are high, but for the long term - no matter what gas prices are. The US is the only country who complains about $4/gallon gas when most other countries have been paying over $4/gallon for a very long time. "Those" countries have always understood that quality and fuel efficient cars was the only way to compete in the world marketplace. Detroit snubbed their noses in the past when we had line-ups to buy gas, and other periods of high gas prices when they reacted just for the moment, and went back to gas-guzzlers. They wonder why they're now in trouble.

I heard a congresswoman today on tv who was saying that Detroit needs the money to "retool" their factories. It's not about "retooling." Vehicle sales are down for all car-makers. It's the economy, stupid! Retooling will not help anything, because the management in Detroit never understood how to compete well.

I understand. I was answering hbg's question about why states aren't offering the big 3 any incentive to build a factory in their state, but they are offering incentives for other car companies. From what I understand it's been decades since the big 3 built a manufacturing factory, so state incentives aren't the issue here.

Krugman says he's been misreported.

http://krugman.blogs.nytimes.com/2008/12/08/me-misreported/

thomas quoted :



i was a little surprised to read "me and my colleagues" - but have heard it fairly often now . wouldn't be surprised if "me" becomes the new "I" .
hbg

Spot on! Me into I.

The auto company bailout failed, because the union didn't want to compromise on their wages until 2011 when their current contract expires. They'd rather be without a job; their choice. They shouldn't be bailed out anywhos.

I saw this on the web and actually yelled out "YES!". I don't think I've ever done that before.

I hope the Congress can keep this from happening. Go Republicans!

Yeah, I yelled "YES" too, but I know how the market will react to it tomorrow. On top of all that, there's an old time, very huge, ponzi scheme player who's been arrested for fraud in the billions, and that's going to be the straw that breaks the camel's back that;s going to make the market look like a drunk sailor. Be ready to puke...