This illustrates exactly why the Big Three automakers should not get a dime of taxpayer money to bail them out of potential bankruptcy.
We need to let the automakers file for bankruptcy, with everything that entails. Perhaps they will come out of it leaner and more ready to compete and perhaps they will disappear and other automakers will take their place. Perhaps another group of entrepreneurs will buy one of them and create an entirely new car company that will run itself more wisely than the Big Three have.
It’s in our interest to let the future play out as it will. Stepping in front of that, using taxpayer money to reward failure, is not.
(via The Foundry)
UPDATE: See also Jim Manzi’s post, with another eye-opening chart. He takes a look at how much pre-tax profit each carmaker gets from each vehicle. The Big Three are getting killed. Also note the market share the Big Three have lost over the past forty years.
They shouldn’t be bailed out of their incompetence.
Category: The Economy and Your Money