Saving the US Auto Industry

[monster]

Originally Posted by tw

Good part companies will simply make more parts for productive companies that actually let engineers do designing. Those who cannot meet fundamental quality concepts (that are required by the better auto companies) will die.

right.

You have no idea about this business, do you?

Most parts companies make parts for all manufacturers. Not just the select few who meet your "good" criteria. they do their job and they do it well, but they haven't been paid for a while. By good and bad auto companies alike. Because when the bad ones don't pay, the good ones say "well why should we pay either?" And once the debtors go into chapter 11, they're protected.

[tw]

Originally Posted by monster

Most parts companies make parts for all manufacturers. Not just the select few who meet your "good" criteria.

Those manufacturers manufactures will (in the future) be making more of better parts for better cars. If Chrysler disappears, the manufacturers make more those other parts for other companies.

Meanwhile, yes, many part companies must disappear. The time to avoid this problem was four, ten, and twenty years ago. Those who foolishly could only sell to GM (who did not go through a process of earning the right to sell to Toyota, et al) probably will go under. But time to have worried about this was many years ago when the problem was obvious.

My sympathies to a part company president who sat next to me and said, "GM will show me how to cut my costs." But then, his own statement should have (and hopefully) told him to start making parts for better companies.

We have all suffered because, "Reagan proved that deficits don't matter." So we voted the idiots back in office rather than fix the problem. Bankruptcies today could only have been averted back then - fundamental economics. Now many companies must go under.