Instead of Big 3 bailout, would it work to help Japanese/ others build more factories in USA & buy USA parts?

It seems like this might be more effective long term and cost less. Big 3 could still file bankruptcy and emerge as as smaller, more efficient competetors. Many new people would be hired by new Japanese factories, producing high quality, fuel efficient cars.

The Honda and Toyota makers in the US seem to be doing just fine without help. Detroits problem is that they make cars no one wants.

Sounds better than anything congress has come up with. That's a compliment for you, but an insult to congress.

Actually, the government should not be handing money to any auto makers. Those who have tended to business, such as many Japanese makers, have done well.

The immediate failure of the big 3 automakers would cause a substantial amount of job losses in the short term. Helping foreign automakers could possibly have a small positive effect with time, but nothing along the lines of what you're thinking. Helping firms who need no help will not solve the problem of domestic inefficiency.

the problem is that a few years ago, the american auto makers were making record breaking profits, but did not use the profits to make their cars better. im especially talking of chrysler. over the past 3 years, they had numerous models get redesigned. each one they could have improved the interiors/suspensions/engines. but each one had the same rock-hard interior and live-axle suspension as the last one. gm and ford actually did make an attempt to improve fit and finish, but it was too late.

no, what you are saying would help the japanese not us. american parts are generally cheaper, and our unions are not as strict as japanese unions. did you know that if you work at a toyota auto factory in japan, toyota has to provide all your living expenses including housing and food until the day you die even if you are retired. if they had more factories here, they would not have to be bothered with this and would save more money. so basically, you would just hurt american auto makers more by doing this.

With the Big 3 U.S. Automakers circling the drain, here are 10 solutions to the current crisis and none of them involve sticking your head between your legs and kissing your rear goodbye.

http://fastandloud.com/how-to-save-the-us-automotive-industry-in-10-not-so-simple-steps/

A bailout is a term for a give away. If I understand correctly the term bailout means low interest loans in this case. I can't say this term means the same with the wobbly titans of the financial sector. It makes me sick and somewhat angry to have to provide government loans, a sort of welfare to keep the only three American automotive companies liquidity to stay alive. This should inform the public that corporate governance unique to the American auto industry is sub-par. The playing field is even among all of the automakers, and the American manufacturers over the years have benefited from the buy American campaigns, tax incentives for anyone in America to buy big Hummers and Ford F150s, a bailout in the 80s for Chrysler (low interest loans), for years gas and oil prices have been favorable and yet we still have to help them help themselves, what a sorry bunch.
Separately, the line workers, suppliers and all of the ancillary and related businesses that go along with car manufacturing, like tires, aftermarket suppliers etc. When you add up all of these small to medium related businesses and employees in orbit with the "Big Three" they are the equivalent to 25% of the nation's work force. The Great Depression was marked by 25% of unemployment, it is the statistical high water mark. Right now the U.S. is running at and average of 7% unemployment and growing, if you add the collapse of the automotive industry more than 33% of Americans will be unemployed. This does not include DHL shipping, the feeble airline industry who will soon be coming to the tax payer with it's hand out and the recurrent bailout of the financial institutions. From a public policy standpoint we have no choice. American manufacturer's corporate governance should be scrutinized and compared to the current competitors who do not need a form of welfare to stay a float. All of them have had a need for government intervention at some point, but look at how they are performing against American industry, something is wrong with that picture.
My direct answer to your question is that if we do not bail the big three out, their will not be any opportunity to emerge as anything but the ashes of history. To my point, Cerebus a deep pocket equity firm ceremoniously stated they where in it for the long haul, they are in it and now they need government help. Their mission was to do what you suggested smaller more efficient product. The first order of business was to take Chrysler off of public trading, like NASDAQ. If Chrysler were on public trading they would bust hell wide open.
Finally, the Japanese automakers cannot at this time absorb 25% of the nation's work force, plus I assure you it is not in the business plan. While the car industry is related in so many ways, the employees and systems are not inter-changeable parts. We have no choice but to bailout the Three.

The American auto industry is a national asset, and we all share some ownership. By now we know that Americaâ€™s Big 3 are not â€œtoo big to fail.â€ They are also too important for us to allow them to fail. Almost 4% of US Gross Domestic product is auto-related and represents 10% of US industrial production by value. One out of every 10 US jobs is auto-related, with auto workers receiving $335 billion annually in compensation. The auto industry purchased $156 billion in US parts, materials and supplies, supporting jobs in all 50 states. The companies provide benefits for 775,000 retirees and surviving spouses, and provide health care benefits for 2 million Americans.

It will definitely be cheaper to loan $50 billion to the American car makers, than to suffer with the monumental cost of bankruptcy, including the loss of up to 3 million jobs, and the Federal Government assuming hundreds of billions of dollars in pension and health care liabilities. Bankruptcy by any of the American auto companies would pull the entire industry down, because liquidating the assets of a bankrupt automaker would drive the survivorâ€™s prices, along with suppliers, below the point of maintaining solvency. A bankruptcy by GM or Ford will almost certainly push the US economy into a full depression that will take years to recover from.

GM, Ford and Chrysler are the only American car manufacturers. A Honda or Toyota plant in Alabama or Georgia is not an American company. The Japanese and Korean transplants that enjoy millions of dollars in tax breaks, even while importing most of their assembly components, do not â€œcreateâ€ any jobs. They merely shift employment from old industrial northern states to non-unionized Southern states. Taking into account the loss of jobs at suppliers, and support businesses, the â€œcreationâ€ of one job at a Hyundai plant in Mississippi, probably eliminates three jobs in Michigan or Ohio. And of course the profits are siphoned out of America.

it cost GM about $73.00 per hour to make a car. It cost Honda-Toyota about $40-45 to make a car. Honda -Toyota Profits go to Japan. Problem is for big 3 is the business model is not working. True if they filed chapter 11 that would help but in order to do a Bankruptcy you need debtor in possession to make it work. what bank is going to lend GM money while they restructure?

100 years ago if you look at the largest companies in America they looked real solid. However only just a handful even exist today. GM made several mistakes. Design, quality and the giving into union demands. TaTa however may want to purchase GM for Pennies on the dollar after it goes through Bankruptcy. That would be interesting.

(TaTa a huge Indian company...Cars and telecom)

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