Even if the automakers do go bankrupt and then return with a comprehensive recovery plan, I think it is simply far too late for the US industry. Even Japanese car companies like Honda and Toyota, which have been ahead for years, are now struggling. What hope does the antiquated US industry have of catching up in such a difficult climate?

US automakers missed their chance to innovate when times were good, now neither bailout or bankruptcy is likely to save them.

I think you might be on the money there, Joachim
"US automakers missed their chance to innovate when times were good, now neither bailout or bankruptcy is likely to save them"

Of cours, the sorry state of affairs is that that seems to be the problem with nearly all industries, does it not?

I agree with both of the comments. Our auto industry is in a sorry state and there doesn't seem to be an easy way out.

I'm not so sure.

The auto industry needs a bailout bad. But it should come with strings attached - see link below

http://www.foxnews.com/politics/elections/2008/12/08/auto-industry-bailout-come-strings-attached/

Let them sink. We shouldn't be bailing out an industry that has been totally mismanaged for years.

I agree with Paul - but there is a lot more too it. You can only help those who help themselves, or at the very least, want the ability to help themselves. Nothing over the past two decades has demonstrated anything other than the fact that these selfish backwards thinking companies will always put their pockets first - and always in an immediate fashion. Not to mention the unions.

Paul and Rolf, I couldn’t agree with you more. The competency of the companies to successfully use these ‘bridging loans’ leaves the taxpayer hanging in the balance. Now is not the time to be saving mismanaged industries at the taxpayer’s expense.

it's all well and good saying "let them fail" and throwing these incompetent companies to the dogs, but it doesn't solve the problem of all these people who will be out of work.. what about those? yes, the auto industry needs fixing; but not at the expense of innocent hard workers.

It's the same thing with banking. I know the UK gov't gave a big bailout to the banks there, and they refused to pass it on to consumers - or their own workers for that matter. Who's to say the auto industry wouldn't be the same.

I'm fed up of hearing about government bailouts. If an industry has mismanaged itself and failed as a result - then why does it deserve a government bailout??
It is precisely this culture of begging or borrowing to get out of a tight financial spot that is the reason behind the US credit crunch.
Society needs to get back to basics and realize that if you make a mistake through greed - you must suffer the consequences. Unfortunately it is the poor workers at these companies that are suffering the consequences of their bosses' greed. Any government bailout should go directly into their pockets. Not into the pockets of the fat cats that got the industry into this state in the first place.