GM and Chysler Bankruptcies

[Kevin]

GM produced 3,382,315 vehicles in 2005, and Chrysler made 1,652,703 vehicles.

So the big question I have is; where will the production capacity come from to step in and provide North America with automobiles?

Toyota and Honda are both producing under capacity. So was Volkswagon the last I checked.

If the government had stayed out of it, who is to say the Saturn wouldn't have picked up a few of the plants and upped production, or that Tesla wouldn't have taken the plunge and kicked up production into an open market.

Tata is looking to get $5000 vehicle that meets that US standards over here by 2012 last I heard. They are trying to essentially make the next VW Bug.

If GM and Chrysler stopped making cars, don't you think Ford's sales would go up too and don't you think that would help them get out of the trouble they are barely staving off? Sure it might only be 20% of the 5 billion produced vehicles. Of course how many of those were sold in North America? GM provided a lot of vehicles to Brazil.

I'm also not denying that short term prices may go up. I'm not remotely trying to deny that a company as large as GM folding doesn't have big short term effects. But I also believe there are entrepreneurs out there who will rush to fill the void if the process isn't screwed with.

You've griped about the Obama vision (and I agree, though I'm pretty sure it was the Bush administration that made the original plan for the automakers but it still sucks). You seem to not want the natural option to happen either. Or maybe you think that because of the interference by the Feds that the void will be harder to fill? I don't disagree I don't like how this was handled, but I still have faith in the market.

This is a market that is too lucrative to stay empty for long. If Fiat is allowed to buy Chrysler then that void doesn't happen. The stock holders get screwed but many of the workers keep jobs. Sure parts will be shed, but Fiat won't let a huge sucking market that they now have capacity to produce in, just sit there. GM will still make cars under this system. So the short term is already somewhat covered.

My issue is that it's covered in the wrong way, and honestly I'd rather suffer a harsher short term and let the natural process happen. But I've also not had a car for the past 3 years and I've survived. :)