A Closer look at the US Auto Industry

"There are really two different U.S. auto industries. And only one part of it would have qualified for the bailout that was just rejected by the U.S. Senate -- the inefficient part that is headquartered in Detroit. There is another auto industry in the United States and it is healthy. While it is obviously going through tough times because of the economic crisis, it has not gone begging to Washington for taxpayer help." - CNN Story

"

Zakaria: Actually there are 12 international car companies that have manufacturing operations in the United States. Collectively, they employ 113,000 Americans directly -- even though that is less than the 239,000 at Ford, GM and Chrysler. However, those international car companies sell more cars than the Big Three and their customers love their products. They have millions of American shareholders. They do sophisticated work like research, design and marketing in the United States. All in all, they add jobs and high value to the United States.

CNN: So what are they doing better than the U.S. car companies?

Zakaria: It is simple -- better management. Yes, Detroit has problems because of its legacy costs, the cost of paying health care and pensions to its retirees. But many other Americans firms in other industries have had to change their benefit systems or die. Detroit always managed to avoid making the change in part because of government assistance.

But companies like Toyota, Honda, and BMW are not just skilled at cutting costs -- they make better cars. They have more flexible factories and production systems, and understand what American consumers want.

For example, Toyota and Honda are years ahead of American carmakers in designing and producing hybrid cars, and as consumer demand moves in that direction, they will reap the rewards." - CNN

This is what the American People are saying. Why bailout a portion of the Industry that has doomed itself? Anyone with an ounce of brains would realize, if GM and Chrysler go away, then companies like Ford, Toyota, Honda, and BMW will pick up the slack. It isn't like the whole Auto Industry will go away, people will still be buying cars. Production will pick up in the companies that are left and they will hire more people and the viable companies will thrive. Let those mismanaged companies die!!!