Talk of The Villages Florida - View Single Post - Will It Happen? Can It Happen?
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Old 11-23-2008, 10:08 AM
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Default Will It Happen? Can It Happen?

Some of the best ideas I've heard yet regarding the auto industry came from Paul Ingrassia, former Washington Bureau Chief of the Wall Street Journal on Sunday morning's Meet The Press show.

Ingrassia opined that what the auto industry needs is someone who can impose, not negotiate, fundamental changes to the structure of the industry. He used examples of the difficulty the industry has with the UAW contract, the state-by-state contracts with dealers, etc.

Whether he meant the "auto czar" that has been mentiooned before or not, I don't know. It's hard to imagine how such a czar could be given the authority outside of bankruptcy court or the legal system to do things like invalidate contracts and override state laws. But ignoring those types of issues, that's probably exactly what's needed to begin to resolve the problems of the auto companies. If the "czar idea" doesn't gain traction, it would appear that the auto companies are headed for a bankruptcy court-imposed restructuring or even liquidation. I see no way how the parties at interest can ever successfully negotiate the needed changes.