Poor Results Doesn’t Justify Auto Bailout
The most basic business concept we have is: Show us good results in order to justify yourself.
The auto makers haven’t done this. Their business model is out-of-date. Oh yes, they gave customers what they wanted, but they shouldn’t have. Management should have been smarter. We don’t need all of the models offered. We don’t need last generation technology. We don’t need all of the dealerships and inventory. We don’t need bloated bureaucracies. And we don’t need the UAW wanting more and more of everything.
When cars replaced horses, carriage makers and horsewhip makers went out of business. Sure, business is more complex than a century ago, but get with the times.
Not only do the auto makers need to be clear about the results they propose, they need to propose the right results.