Wednesday, April 1st, 2009...8:07 pm

An idea for the auto industry.

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As a capitalist, I am against the government bailouts of the auto industry.  I think that failing companies should fail, simple as that.  However, as the government has already bailed them out to apparently no success, I would like to make a suggestion.

Any bailed out auto company can now only make 3 models until they have paid back the bail-out.

  1. Economy
  2. Mid-Level
  3. Luxury

All of the models will be ‘base’ models.  There will be no options from the factory… That is not to say that there will be no options available though.  Like the computer industry, options will be the realm of 3rd parties.

The benefits of this seem clear.

  1. Lots of small businesses would be started to support the options
  2. Lots of jobs would be created, and hopefully filled by laid off auto employees
  3. A smaller line would allow the companies to refocus on profitability.

Maybe I’m a bit communist about this, but I just don’t see forcing the CEOs out of the companies is going to make the difference that will change these businesses.

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