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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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