So, there is a lot of talk lately about bailing out the US auto industry. I can't say I have a firm, well formulated, reasoned position on this subject, but I do have some thoughts.

As a free market loving, libertarian leaning, government fearing guy, I think a bailout is completely wrong headed. ( After all... )
BUT

I would be incredibly sad to see the big three fail and disappear. ( It isn't... )

Does this mean I think the car companies don't deserve the beating they're taking? ( NO! )

Yes, it is true, I think the domestic manufacturers make cars that fulfill most of the mission requirements of US drivers at a price that most imports can't match. Even the 'cheap' Korean vehicles don't seem to undercut a comparable domestic car when you consider actual selling prices rather than MSRP. Actually, I think the Chevy Aveo undercuts its Korean brethrens' pricing, while being similarly equipped and perhaps more palatable to middle American families (it wears the bowtie, after all, rather than the twisted H). The difference becomes more obvious when you consider larger, more family oriented cars and minivans. Sure, the Japanese minivans are better in many ways than the domestic offerings, but they are also much pricier when you look at the real selling price (and ignore re-sale, etc...)

Anyway, in the end, I'm still not convinced that a government bailout will help, or that it is a good thing even if it would help. But I'm also convinced that the government and the US Taxpayers, as individual car buyers and represented by our government, created the situation that has lead to the likely demise of one, two or all three major US auto makers.