Quote:
Originally Posted by garagelogic
If Ford, GM and Chrysler were all to fail, where do you think the executives that ran those companies would go? Most likely, they would create a whole new car company, secure private financing, and build cars again. Nowhere near as big as any of the ones that collapsed, but producing American cars nonetheless.
It's not like the automobile industry is not profitable, quite the opposite is true, but they cannot be profitable and make a quality product given the current situation they are in.
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Sooooo people from a failed company are a safe bet for venture capitalists but investing in companies who are making industry leading products is too risky?
Are there 'other' american car makers? Yes. But these are specially built cars that compete with comanies like Konigseg. They won't be spending a billions dollars at universities for R&D (Toyota and BMW won't either, not over here at least). Or employing thousands of engineers. Or be capable of mass production. Or generate tax revenue in the tens of billions. But they will exist.
I will agree though, the current situation prevents them from being profitable and making quality products. The proof of this is somewhat self evident, but true none the less. If the could make profitable, quality cars they would and we wouldn't be debating about government loans for the automakers. However, everything that I've seen shows that they will be making quality, profitable cars begining in 2010 (well, I still need convincing with Chrysler), they just need help getting to that date.