Comments on: Should the US – or the EU – subsidise the motor industry? http://www.johnredwoodsdiary.com/2008/11/13/should-the-us-or-the-eu-subsidise-the-motor-industry/ Conservative Party Candidate for Wokingham Sun, 21 Mar 2010 17:12:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Chris H http://www.johnredwoodsdiary.com/2008/11/13/should-the-us-or-the-eu-subsidise-the-motor-industry/#comment-27392 Chris H Thu, 13 Nov 2008 14:14:29 +0000 http://www.johnredwoodsdiary.com/?p=2063#comment-27392 With the bankruptcy law in the US, letting the US auto makers go into Chapter 11 bankruptcy would probably be the best solution, because it would allow the companies to renegotiate their unaffordable pension liabilities. Getting rid of these liabilities is the only way that the big three are going to be able to be able to afford to invest enough to change with changing demand. At best, government bailouts will simply put this renegotiation off until the next down turn. With the bankruptcy law in the US, letting the US auto makers go into Chapter 11 bankruptcy would probably be the best solution, because it would allow the companies to renegotiate their unaffordable pension liabilities. Getting rid of these liabilities is the only way that the big three are going to be able to be able to afford to invest enough to change with changing demand. At best, government bailouts will simply put this renegotiation off until the next down turn.

]]> By: Blank Xavier http://www.johnredwoodsdiary.com/2008/11/13/should-the-us-or-the-eu-subsidise-the-motor-industry/#comment-27390 Blank Xavier Thu, 13 Nov 2008 13:47:31 +0000 http://www.johnredwoodsdiary.com/?p=2063#comment-27390 It's not that Government is providing money to the *best* run businesses - who might well benefit from the money and do great things witih it - it's that they provide all this money to the *worst* run businesses, the doing so badly they're going to go out of business. It’s not that Government is providing money to the *best* run businesses – who might well benefit from the money and do great things witih it – it’s that they provide all this money to the *worst* run businesses, the doing so badly they’re going to go out of business.

]]> By: Derek http://www.johnredwoodsdiary.com/2008/11/13/should-the-us-or-the-eu-subsidise-the-motor-industry/#comment-27376 Derek Thu, 13 Nov 2008 10:52:59 +0000 http://www.johnredwoodsdiary.com/?p=2063#comment-27376 I'm going to have a serious issue with writing out cheques from my business to the exchequer if after my hard work I have to sit back and watch the government then hand it out to another more badly run business. I've suspected for a little while that large corporates other than the banks may also join the line for bailouts. (reference to a major company removed as I do not think they need a bail out) I’m going to have a serious issue with writing out cheques from my business to the exchequer if after my hard work I have to sit back and watch the government then hand it out to another more badly run business.

I’ve suspected for a little while that large corporates other than the banks may also join the line for bailouts. (reference to a major company removed as I do not think they need a bail out)

]]> By: Stuart Fairney http://www.johnredwoodsdiary.com/2008/11/13/should-the-us-or-the-eu-subsidise-the-motor-industry/#comment-27359 Stuart Fairney Thu, 13 Nov 2008 08:33:10 +0000 http://www.johnredwoodsdiary.com/?p=2063#comment-27359 No. Poor busines should downsize or fail. Period. Any motoring bailout stateside will have less to do with sound economics and more to do with polical convenience and just how much money they have 'lobbyied' their respective senators with No.

Poor busines should downsize or fail. Period.

Any motoring bailout stateside will have less to do with sound economics and more to do with polical convenience and just how much money they have ‘lobbyied’ their respective senators with

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