Bankruptcy Filing for Chrysler

As the Treasury Department prepares a Chapter 11 bankruptcy filing for Chrysler, the question arises, "What was the point of the bailout?"

Apparently, Chrysler is not viable as a stand-alone company. Without restructuring, no amount of bail-out money is going to save them. Restructuring in a way that the unprofitable aspects of the company is removed may have saved the company. Even if it failed, the void would be filled by other companies, be they American, or not. If the world must exist for a while without American automobile makers for a while, so be it.

I understand the concern over the pensions and other retirement benefits. After all, my dad spent twelve years with Ford, and may need his pension if he wishes to retire anytime in the near future. However, it is these excessive benefit packages that partially contributed to the difficulties of the industry, and led to their failure.

Personally, I think the big three would be saved if the unions were disbanded, and the companies were able to restructure their benefit packages and wage scales, as well.

-- Political Pistachio Conservative News and Commentary

U.S. Is Said To Prepare Bankruptcy Filing for Chrysler - New York Times