Let the Big 3 go…..

The latest of the economic turmoil has been rolling with no end in sight. The whole American auto industry is trying to take the entire economy hostage. The plea to save the Big 3 US auto makers is going against all odds of the capitalism. Its shame things have come down this low. We already heard the argument that if the finance sector is not saved, the entire economy will come spirally down… To certain extent that scenario made sense. The finance sector is integral part of the interdependent global economies. The enormous scale of the problem made it necessary without a choice to bail them out.

The argument to save the inefficient American automakers is however, downright ridiculous. It will be worth seeing just exactly how much damage it will really cause… The short term impact on Detroit and auto dependent cities is imminent. But the way these auto makers are holding us accountable for their inefficiencies is indeed disturbing. At this rate, any American business that can not compete globally can plead for federal bailout. This type of protectionism got to stop.

The fact is that GM, Ford and Chrysler can not compete in the marketplace. There is no other way around it. Just because they are American icons, consumers can’t keep buying defective cars in a competitive market place where several choices are easily available. I am of the opinion to let them go… There is nothing patriotic about saving uncompetitive, inefficient business practice. If these auto makers can’t compete with their global counterparts, they should be fold. Big 3 are have been plagued with problems for decades. Their products are outdated, their technologies are far from state of the art, the efficiencies of the operations are nowhere to be seen. The unions and workers have hard pill to swallow and realize that unless they improve there is no job guarantee.

I still believe that bailing these 3 is a mistake. Its sending wrong signal that patriotisms can hide inefficiencies and incompetence. In this world, we all strive to be perfect to attain our goals and dreams. Same should be true for the business, regardless of the national identity. Let the market decide who wins and loose. Let the big 3 go, if they can’t compete.