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Forget the Big 3- What about giving all the $ to companies like Tesla?

Telsa motor co. makes an electric car that has a range of 200 mi, can go from zero to 60 in under 4 seconds and doesn't look like a roller skate that got caught in a trash compactor. So why are we considering throwing so much money at the Big 3, when they have not lived up to their obligations?

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21stCenturyMom

Asked by 21stCenturyMom at 8:55 AM on Nov. 21, 2008 in Politics & Current Events

Level 2 (10 Credits)
Answers (46)
  • To continue- we could save jobs and money, if the gov't finds a way to incorporate Tesla manufacturing in the existing Big 3 factories. This, of course, would mean that ALL Big 3 corporate heads would need to be eliminated, which seems more than reasonable to me.
    21stCenturyMom

    Answer by 21stCenturyMom at 8:57 AM on Nov. 21, 2008

  • Tesla cars are far from perfect. There are only a few on the road, and they are still working out a lot of kinks. They are VERY expensive automobiles. It is a very small company, and they are very small cars. It is a niche market. (An old friend of mine is a Tesla engineer.) So it doesn't make any sense for the government to invest money in Tesla in an effort to bail out the economy. There are very few jobs to save at Tesla, but there are TONS of jobs to be saved at the big 3.
    BlueFrogMama

    Answer by BlueFrogMama at 9:10 AM on Nov. 21, 2008

  • I dont think they should give money to anyone. They are privately owned companies and if you or I started a company, and gambled and lost on what we thought would work for our companies how much money do you think the govt would give us? I say let them all go down, give the money to consumers to pay off their debt. They will then see the economy boost because people will pay their debts on a consumer level. Then companies like Tesla would make more because the other companies would be around for competition.
    gemgem

    Answer by gemgem at 9:11 AM on Nov. 21, 2008

  • Gemgem... but what about all the many thousands of people who lose their jobs if the big 3 go down? My BIL is the sole breadwinner and he's an auto engineer (he designs interiors, mainly doors). If he gets laid off and there is no other major auto company hiring, he is not just out of a job, his career is over and he has to start from scratch again. He and my sister, and their babies, would have nowhere to go. If they got a check frm the government, there is no way it wold be enough to pay off all their debt (including student loans) and provide them with enough to live on while rebuilding their life. That's why the bailouts are happening. To preserve existing jobs and preserve the market so that scores of people aren't suddenly out on the street.
    BlueFrogMama

    Answer by BlueFrogMama at 9:18 AM on Nov. 21, 2008

  • Chapter 11 wouldn't make the big3 fire all the employees. It would require that they restructure their business plan so that they aren't losing money. If you believe that the unions are completely within reason with their contracts, then there is not arguement to be had. I don't feel that the unions or the execs are being ethical. They are bleeding the companies dry and leaving the little guys to suffer the most. How many of the $9 million the execs make do you think they will share with the low man on the totem pole? NONE. They are the ones that don't care. If they go into chapter 11, the biggest heads will roll, and the union contracts will have to be renegotiated. It's the only way for them to save their business. This bailout won't work.
    QuinnMae

    Answer by QuinnMae at 9:33 AM on Nov. 21, 2008

  • If I read correctly, Tesla's cars run about $109,000. Can you afford that? Not me.
    Anonymous

    Answer by Anonymous at 9:34 AM on Nov. 21, 2008

  • BlueFrogMama- Of course Tesla cars are imperfect, of course they are very expensive...which is why the gov't should invest in Tesla. With better funding and the manufacturing resources the B3 already have, Tesla can work out the kinks and provide cars at more reasonable price. Simple supply and demand could take care of the rest. Of course, if we simply allow the B3 to fall it's bloated face. then, as you mention, supply and demand will be useless; the economy will be further weakened. BUT!, if the b3 employees can be involved in creating electric cars then it's a win-win situation. I absolutely agree that we can not simply allow all of those employees to suddenly become unemployed due to the bad choices of their corporate leaders. BTW, tell your friend that some crazy lady on the Internet thinks he is awesome. :)
    21stCenturyMom

    Answer by 21stCenturyMom at 9:39 AM on Nov. 21, 2008

  • QuinnMae- I absolutely with you- the little guy is always the first to suffer.
    21stCenturyMom

    Answer by 21stCenturyMom at 9:40 AM on Nov. 21, 2008

  • Oh and QuinnMae- Yes, this is about restructuring. My point is not so much about Tesla perse, or any particular manufacturer. It is about the chance we no have to make sure that our gov't and the auto industry in general doesn't screw this chance up for all Americans. Like you, I am very concerned about the bailout, primarily that it is going to a badly put together plan that will benefit execs in the short term while ultimately failing to prevent the collapse of the industry. There must be rigid guidelines set in place for any such bailout. One of those must be an drastic shift in what type of autos we manufacture in this country. Fossil fuel can't take us much farther.
    21stCenturyMom

    Answer by 21stCenturyMom at 9:46 AM on Nov. 21, 2008

  • QuinnMae is correct it wouldnt cause them to lose employees but would force a restructure. I also believe other car companies who are up and coming and maybe not as popular as the Big 3 would find great opportunity in expanding their fleets and offering things to people that the people could afford. Now I am sure some people would lose their jobs but that happens all the time. My husband worked for a furniture company, one of the largest in the country and they went belly up and moved to Mexico. Nothing much was ever said about that and it left thousands without work. Everyone found work, were eligible for retraining and free school by the state. There are options out there that inthe end might be better for people who are working for a dying company. This money WONT save them. They will be throwing good money after bad money.
    gemgem

    Answer by gemgem at 9:49 AM on Nov. 21, 2008

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