Comments Below: 3
It's time for tough love with the US auto industry...according to Congressman Zach Wamp.
This week the three major car makers appealed to Washington for a bailout similar to the one approved for the banking industry.
GM, Chrysler, and Ford say they're in danger of folding without the help.
But Wamp says a bailout won't fix the problem.
He says it's time for the car makers to trim the fat and consider Chapter 11, "They made real big cars, and they paid too much and they've not managed their business well, and the competition had beat them. And now they coming to Washington on their corporate jets asking for $28 Billion and the American people have had enough of it..... They've got too much overhead and the leaders are acting like they're still making a bunch of money and they shouldn't be. They should cut back and make changes."
Wamp says when government bails out big business it has a negative effect on the economy.
[1]