DETROIT (Reuters) - U.S. auto sales fell in April as high gas prices hurt sales of most sport utility vehicles and trucks, leading to a further erosion of market share for U.S. automakers against their Asian rivals. The slower sales for the traditional Big Three immediately sparked a fresh round of consumer incentives including interest-free loans on Tuesday. Toyota Motor Corp. posted an almost 9 percent gain and Honda Motor Co. notched a 6.5 percent rise in stronger-than-expected sales, while General Motors saw sales drop 7 percent and Ford lost 3 percent.
The slower sales for the traditional Big Three immediately sparked a fresh round of consumer incentives including interest-free loans on Tuesday.
Toyota Motor Corp. posted an almost 9 percent gain and Honda Motor Co. notched a 6.5 percent rise in stronger-than-expected sales, while General Motors saw sales drop 7 percent and Ford lost 3 percent.
That must be the free market at its best, rewarding smart companies and damning short-sighted ones. Is it not?
What must a role for a government here? Should it do nothing, and then bail out only the "strategically important" companies? Or should it try harder defending big and small players from their own stupidity? Or is it enough to make making stupid decisions more difficult, softly promote measures to deal with predictable future market pressures, or diversity of management models.
Instead of bailing out failing companies, buy them out (same money, different outcome). Then hand them over to the workers. guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
(I say this because giving GM to the workers seems to me to be a poisoned chalice given the sheer over-capacity in global car manufacturing.)
I just read the health and pension liabilities of GM are 4 times its market capitalization. Why not capitalize the liabilities and give the workers 80% of the resulting company? Or something like that, I'm not big on company finance, but I'm sure someone can work out the details. guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
