Chrysler Stops Producing Cars!
Chrysler will shut down all U.S. production as of this Friday, December 17 according to CNN Money, effectively closing more than 30 plants. The closure is ostensibly temporary, however, as employees are being asked to return after January 19, 2009. GM last month announced it would idle roughly 30% of its capacity in January, but a complete shutdown is something else entirely.
Washington Are You Listening?
No doubt this move is at least in part intended to get the attention of Washington politicians, who have been dragging their feet on an automaker bailout plan. “If you don’t move soon, we’ll have to shut down for good,” Chrysler’s management is saying. Personally, I am for a responsible bailout so long as it holds automobile manufacturers accountable for upgrading their plants and producing more marketable fuel-efficient cars. The last thing we need is for the automakers to be back in Washington begging for another bailout in a few years.
Either way, I’m guessing this move spurs lawmakers to action, passing a bloated, ineffective bailout plan that will fail to turn Detroit around and amount to nothing more than a huge taxpayer waste. Looking at Washington’s track record, could you expect anything less?
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The only effective bailout option that I see is to let them go through the bankruptcy process.
Either way, this is going to devastate the economy in 2009.
In the information age that we now live in, should the government really be trying to prop up ailing businesses? Wouldn’t it be better to re-skill and let countries that are still industrialising continue their journey through the industrial age, allowing the more advanced Western economies to control more information, which is becoming the most valuable commodity in the world…