Since the 1970s, Detroit’s Big Three auto makers have failed to keep up in the competitive auto industry. Now they are begging the federal government for a bailout to the tune of $75 billion!
Ten years ago the Big Three posted a combined profit of over $16 billion dollars. But management failed to wisely invest these profits.
The Big Three are heavily weighed down by irresponsible labor costs. The problem in the auto industry is caused by unrealistic union contracts written decades ago. These contracts did not give the industry the flexibility it needed to respond to market changes and burdened the industry with legacy costs.
General Motors is leading the call for the $75 billion taxpayer bailout, speeding up the $25 billion loan program to develop fuel-efficient vehicles, $25 billion in general support to keep the companies operating, and $25 billion to bailout promises to union benefits.
It is time to draw the line in the sand when it comes to federal bailouts. Please contact you U.S. Senators an Representatives and urge them notto support a bailout of the Big Three auto makers.
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