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Originally Posted by wachusettgirl  To me, bankruptcy would prolong the sinking. |
Bankruptcy lets a company out of existing contracts, provided certian conditions are met.
The automakers big problems are that they're stuck in union contracts, worker benefit contracts, subcontractor contracts, and supplier contracts. There's just no way they can reorganize when they're locked in to so many conditions.
Toyota and others are still able to sell cars and not go bankrupt. The American automakers were in trouble long before the housing market bubble/credit-crisis thing hit. American automakers can't or won't change how they do business, and until that is changed, they'll continue to slowly sink.
My last few cars have all been foreign brand ones, even though some of them might've been assembled in the US. American cars seem to be designed to last maybe 100,000 miles if you're lucky. But it's been my experience the Toyotas and Hondas are still reliable at 150,000+ miles. My current car is a Toyota Yaris which cost only $12k brand-new and hasn't needed a single repair, not even to adjust a factory flaw.
American automakers: build me a solid, reliable, innovative car and I'll buy it!