Do the Big 3 Need a Bailout?

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The following is guest post submitted to me by the ecopreneurs over at Grow and Make – The Sustainable Living Store.

Currently, lobbyists working for Chrysler and General Motors are working to encourage the US Congress to direct part of the $170 billion bail-out to help Chrysler and GM merge into a new car company. The bail-out is intended to help the financial industry recover from the current hemorrhaging taking place and to ensure a stable consolidation. The argument the car companies are making to congress is that they are financial businesses due to their large interest in providing loans and financing for car buyers.[social_buttons]

As an Ecopreneur I am outraged at the absurd notion that our government should bail-out two broken and dead-end businesses to encourage their intended merger. This bailout would be the closest thing to socialism we will have witnessed from our Federal Government in many years and would be more akin to the type of intervention typical or France or Italy in the past. The only innovation I’ve seen to come out of Detroit in the last twenty years was to focus on becoming finance companies and to then lose sight of their core business of building cars for their customers. As one executive at GM was quoted to say “We’re a finance company which happens to sell cars”.

These car companies could have made decisions to invest in better designs, quality and fuel efficiency years ago, but decided the margins in large SUV and trucks was where their focus should be. Now they want to be “rescued”. What venture fund or corporation would invest in a business, division or startup with this type of short-sightedness. Imagine if you will the outcome of spending the $10 billion they are asking for on small entrepeneurial companies building technologies which enable cleaner burning, fuel efficient, alternative powered transportation. Do you think ten years from now that $10 billion would show a return for tax payers and those who will be seeking jobs during the ensuing time?

If the US Congress wishes to invest in the American automobile industry, they need to consider new and emerging car companies which are truly innovative, hungry and entrepreneurial. Tesla Motors is representative of the types of companies which our country needs to believe in, buy from, and support. The dinosaurs need to become extinct and become part of a by-gone era.

Please email or call your congress person and tell them you don’t want the bail-out to go to the big 3 and that our tax dollars should go to ecopreneurs instead.


Clay Anderson
The Sustainable Living Store

Photo Credit: Joemad at Flickr Under Creative Commons License


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