Waiting for the Other Shoe to Drop

GM CEO, Rick Wagoner, is leaving the company, reportedly at the behest of the Obama administration. I've avoided discussing the bailout of GM and Chrysler, as much because I've not kept abreast of all the twists and turns, and because I'm afraid that I can see no good ahead on the road the bailout is traveling. My worst fear is that we'll be merely creating zombie automakers; companies that aren't really competitive and that will eventually fail while merely sucking more resources down the drain in the interim.

Car companies have been going out of business since the car was invented. The 'Beaulieu Encyclopedia of the Automobile' is a three volume set that chronicles thousands of auto manufacturers. That there are now significantly fewer automobile manufacturers is lost on many. There has never been an equilibrium regarding the number of car companies in business. Companies with longer histories and better reputations than Chrysler or GM have folded before (think Packard and Studebaker as examples).

It is disheartening in that we all know people that are deeply and personally impacted by the decisions that will be made, especially if failure is the result. I hope for the best . . .