Big 3 Showdown

The heads of the Big 3 Detroit automakers are in DC today for hearing on government financing. Of course, one of the reasons they are there in the first place is because they focus too much on lobbying Washington for favorable treatment and money, and not enough on running a solid company. So far this year they have already spent $50 million on lobbying Washington. That amount of money is fairly small, however, it is more about the mindset. You can't, or at least shouldn't, run a company by sucking up to Washington. Ironically, Detroit can't even pick a winner in Washington. Rep. Dingall, who they have lavished millions on, lost the chairmanship of a committee long used to protect the Big 3.

The situation does look dire. There is talk of a pre-packaged bankruptcy, which may be more palatable than the regular kind. In an extremely ominous sign, the UAW is ready to make wage concessions. That is a definite sign the end may be near.