Chundles

Update: According to this story, a bi-partisan agreement has been reached on a bailout bill for the auto industry. Let's hope it's filled with preconditions.*****

With apologies for resurrecting one of the Presidential campaign buzzwords, the only way the US Government should consider bailing out the ailing auto industry is if there are serious preconditions to such a bailout.

As of this writing, it doesn't look like the bailout is going to happen, but in the event it does, the stalwarts of Detroit need to have some change forced on them since it's seems they're incapable of doing it themselves:

--Backbreaking union contracts must be renegotiated. If the union doesn't like that, then they can start lightening their coffers by paying unemployment benefits to their members.
--Fuel efficiency standards must be upped dramatically. If that means no more obnoxious, gigantic gas guzzling trucks and SUVs, then so be it. Tough.
--They must allocate a significant portion of their operating budget to clean tech. I read recently that Toyota spends more than the entire US government on hydrogen research. Let's force that on the Big 3. That's the only way they'll survive.
--Aging workers who do not have the technical skills to help make these companies in the modern world must be let go. Yes, pay them off for their service, but they need to be replaced with people who have the skills to innovate.
--Close factories abroad. That will mean decreased revenue, but we need to focus whatever resources the industry will have on our own country. These companies want the government to save them? Then they need to work for us, the American people.
--Kill all executive bonus programs and perks, unless X% profit margins are met.
--New Board Members, elected jointly by shareholders and congress, should take control of at least 51% of the Board of each company.
--In exchange for some tax credits, we need to figure out a way to get Toyota to retrain American auto workers. Perhaps all factories could be co-operated (like NUMMI in Northern California is) by one Japanese company and its American counterpart.

It's enough already. The US Auto Industry has been producing subpar products for years. Sure, they're cheap. But you get what you pay for, and it's no wonder their businesses are in shambles. Their cars are ugly, not designed well, many aren't fuel efficient, and they're not durable. The taxpayers should not foot the bill for their fumbles. If they want our money, we get some control over how it's spent. While some of my ideas might not be feasible, if they don't agree to a comprehensive and measurable list of changes they must make, they should go out of business.