This weekend, according to the WSJ , GM is blitzing lawmakers on the enormous impact of their possible bankruptcy.  GM claims that if it goes belly-up the impact will reach far beyond GM’s doors.  To it’s suppliers, to the dealerships, to the hot dog vendors who setup shop outside it’s door, and (here’s the big one) to the federal government who will be forced to back GM’s pension plan of former workers.

The WSJ quotes a top GM advisor as saying, “There is no Plan B being discussed beyond a government bailout.”

This is considered a great American company that should be saved?  What could be more un-American than choosing to beg for a handout without any attempt to work it out for yourself?  People are much more likely to give money to a  homeless person who offers to clean their car windows or plays music than they are to a guy holding a can asking for money  There is a reason that guy standing on the street corner has a sign that says, “Will WORK for food.” 

Why should GM be any different?  Why should GM’s survival be entirely dependent on you, me, and us giving them money without any effort to do something themselves, even in part?   It’s not like this is the first time the automakers have failed, nor is it the first time they’ve run to the government for protection.

As if that isn’t aggravating enough, GM has the audacity to turn corporate begging into a government hold up.  They claim that without a government rescue, not only are they going down, others are going down with them.   GM is wagering that  it will have hit the jacktpot if it can shift  responsibility off of them and onto the government for not saving all of GM’s unintended vicitmes.  The golden key to shift blame!

It’s not our fault the big three have continually caved to the unions and drove themselves head-on into a labor cost that is two-thirds higher than competitors.  If you’ve ever been involved with the production of a product you know the cost variable with which the producer has the most control over is labor cost.  In almost all cases if you work more efficient, you can make the product cheaper.  It’s also not our fault they aren’t making many cars people want, and that they are making too many models.  Did you realize that between GM’s Chevrolet and Pontiac brands there 15 different models, not counting trucks, vans, and SUVs?  Don’t forget they own all the Buick, Saturn and Cadillac models too!  It’s not our fault they failed to recognize sooner there wouldn’t be gasoline forever, and have now leveraged their entire future on the hopes of a single car (Chevy Volt). 

To quote Forrest Gump, and this applies to both the big three automakers and the government who continues to rescue them, “Stupid is as stupid does.”

I don’t think the US Automakers get it, and I hope the US government doesn’t decide to bail them out investment bank style.  The Detroit Free Press has written an analysis on the plans GM has for Chrysler, should the merger talks between the companies come to fruition. 

GM is saying it would simply add the Chrysler brands to it’s already expansive product line.

Chrysler’s brands would become just like Chevrolet, Pontiac and Buick,

Conflicting brands could be dealt with in a few years after this industry turmoil has passed, one of these people added.

The US taxpayers have just given $25B in bailout money so that GM can continue to make the crappy cars it always has, and in addition take on the crappy cars made by Chrysler too, without changing a thing.  We’re giving them bailout money for this?  Why do we keep rescuing these automakers who refuse to change their business models?

If you look at this situation in more general terms, weren’t we just told the reason the credit problem is so bad, and the banks are failing is because they got so large.  The Treasury Secretary and the head of the Federal Reserve  told us that enormity is why their collapse requires a bailout.  Applying that same logic to the auto industry, it appears to me we have just given them $25B to consolidate into a few, more enormous companies.  Why is this OK, and that not OK?

Oh yeah, and by the way, there are 3500 Chrysler dealers nationwide.  What happens to those?

“excess dealers” would cost GM nothing in the short-term and that some — if not many — will fail on their own anyway.

So essentially GM is saying they need the US taxpayers to give them bailout money to keep them in operation.  However, when it comes to GM’s concern about Chrysler’s 3500 dealerships, let them fail on their own.

Stop the madness!  It’s time we let GM and Chrysler fail on their own.  The sun will still come up the next day.