A little perspective is in order

I’ll be the first to tell you that I think GM and Chrysler should be allowed to enter bankruptcy.  I’d do it in a well-ordered, prepackaged manner, but I would do it.  Even so, let’s be honest when we talk about these companies.  No company that size and that capital intensive should be expected to handle a 50% downturn in business.  And the downturn is NOT the fault of their mismanagement.  The auto industry is not responsible for the failings of the real estate and financial markets that have led us into this depression.  I’ve said this before, but now it’s time to write about it.

The Wall Street Journal reported that Toyota is seeking a loan from the Japanese government.  So too is Honda.  Their businesses are off more than 40%, too.  These are the companies that pundits keep holding up as the models that the big three should aspire to match.  While  Honda and Toyota are must better managed than the American car makers, the fact that they are also looking for bailouts speaks to just how bad things really are.  It’s become so easy for some to bash faltering companies—and others to jump on the bandwagon in agreement, that I hear fewer and fewer people taking a step back to try and be objective in their criticism.  I’d like to see us be more articulate, more data driven, and less glib when we talk about the failings of GM, Chrysler, and yes, even Ford.  They may run out of cash faster than their Japanese counterparts, but much of what they’re facing is not their fault.  Let’s let them go bankrupt anyway.