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We Had To Destroy The Village In Order To Save It
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A government watchdog says that the federal government's bailout plan for the car companies pushed GM and Chrysler to shut down auto dealers too fast. The feds encouraged the companies to cut dealerships right away, under the unproven and possibly faulty assumption that less competition among dealers would help the remaining dealers survive and allowing dealers to remain open would lead to a "Carmageddon" taking the industry down with it. And the companies, for their part, apparently didn't do a lot of due diligence before cutting off dealers, killing perfectly successful dealerships without much thought. In the service of trying to save jobs, the government may have pushed the car makers into causing greater job loss. (CNN Money)
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