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    On the Goals – US Auto Industry Bailout Notes No. 1

    Goals

    1) Re-establish and maintain going forward a viable domestic US auto industry capability that can successfully compete domestically and globally.

    2) Minimize the net disruption to the US economy while transitioning and recovering.

    Goal #1 Implies:

    – products that consumers want to buy
    – reasonable profitability above the cost of capital
    – private ownership
    – robust product development and R&D
    – efficient internal processes and supply chain mangement
    – competes successfully globally
    – New executive leadership

    Goal #1 Does not Imply:

    – any particular target of total sales
    – any particular target of jobs retained
    – any particular target of brands of models retained

    Goal #2 Implies:

    – Chapter 11 Bankruptcy
    – USGOV assistance post-Chapter11
    – Quick – not drawn out

    Goal #2 Does not Imply:

    – Chapter 7 bankruptcy
    – Heartlessness
    – No layoffs
    – No plant closings

    More to come.

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