Auto Bailout Almost More Than Taxpayers Can Handle

Just about everyone is conflicted on all the bailouts going on these days. Rescuing banks and automakers are sold to the public by telling us about the apocalyptic destruction that doing nothing would spark. So Americans are going deeper in debt, with no end in sight. It's a sickening feeling.

The automaker crisis is one of the most troubling. Most Americans want our automakers to survive. We love our GM, Ford and Chryslers and the thought of these companies tanking is unimaginable. And none of us want all the retirees and workers who depend on these industries to be kicked to the curb. What's troubling, though, is that these industries are failing due to their own poor management.

Looking back on the mistakes made by the Big 3, it's difficult to figure out what they were thinking decades ago. We're figuring they thought they were No. 1, 2 and 3, and would always remain that way. That's why they agreed to union bargaining that produced higher wages and benefits than just about any other manufacturing sector.

Obviously management figured GM, Chrysler and Ford would be raking in such big bucks when those benefits came due that they could easily afford them. It didn't happen that way, and that's due to a totally different problem.

Big 3 management made mistakes at just about every turn when it comes to figuring out what the market wanted. They had a few successes, such as mini vans, but they put all their money and research in one direction while the market moved in another. No bailout can fix bad business decisions.

The bottom line with consumers paying $20,000-plus for vehicles is reliability, cost, fuel efficiency, style and functionality. Many foreign competitors are doing a better job in most or all of these categories. That's why they are doing well.

Detroit's automotive brain trust should have been the leaders in where transportation was headed. Instead, they became reactive and constantly chasing Japan and Germany. You can't lead from deep in the pack.

Can a bailout actually save our automakers? No one knows. The last thing we should do is pour billions into an industry that's going to fail no matter what. That's why Congress has lots of strings attached to a bailout, but will that make a difference?

It's probably the last straw for American automakers. The $14 billion bridge loan is a lot to lose, but it's nowhere near what the automakers want.

The stakes are high here for automakers, auto workers and taxpayers. Let's pray this works. American taxpayers can't take much more.