Bankruptcy is the answer folks. It’s a tried and true process. And under Chapter 11 the focus is turning around the company. Throwing more money into the failing business model of Detroit isn’t going to help and it’s going to prolong the pain of all involved including the workers.
Andrew Grossman at The Heritage Foundation has a good article on the subject:
Automakers Need Bankruptcy, Not Bailout. As he explains:
Chapter 11 reorÂganization allows businesses that have run up against adverse economic realities to change course quickly, avoiding the legal shoals that so often preÂvent radical changes outside of bankruptcy. FurÂther, Chapter 11 requires that this be done in a way that is likely to succeed and that creates the right process and incentives to start even the largest corÂporate reorganizations on their way. Though they are larger than most businesses, the Big Three present precisely the kind of scenario that Chapter 11 was designed to address.