I don't want to invest in two automotive companies crippled with large health care liabilities, high union labor costs, overcapacity problems in the midst of a recession, and a poor record of innovation. But unfortunately, that's just what the government is planning to do in my name and yours.  The latest proposal is for a $15B "bridge" loan, including warrants, to get the auto companies to the next administration. 

Bob Lutz, GM vice chairman of global product development said this:

"You know, I don't think anybody in Congress or the president-elect assumes that this is all the money that is going to be required to bridge this liquidity crisis that the American automobile industry is facing, and, again, it all depends on how fast we have an economic recovery. Again, let me restate this. At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody."

My bold. This statement is categorically false.  What he means to say is that there isn't a viable industry given the current structure of the three major auto companies. If these companies fail, or go through a pre-pack bankruptcy and truly restructure, automobiles will still be made in America - they just won't be made by these companies as they are currently constructed. They will be made by companies that are willing to take the risk of entering the US market - companies that have a vision about how to create and grow a profitable business. They will not be legacy companies whose executives believe they have some sort of inherent right to manage the automobile industry in America. This is how it should be. A risk taken, a potential reward received.

I hope I'm wrong about this. I hope the auto companies flourish with their new-found source of public capital.  I hope they reinvent themselves to become the successful transportation companies of the future.  I hope the Detroit metro-area experiences a rebirth, that results in lower unemployment, and economic growth not seen since the 50s and 60s.

I hope all of these things will come true, but at the moment, I think the auto companies will just burn our cash.