If Chapter 11 is put off to the -- if Chapter 11 is put off, the industry will continue to shrink. And inevitably, when it happens, and we go through the process, fewer jobs will be saved, because fewer jobs will be there to be saved. Sooner or later, this industry has to go through the ultimate reorganization that brings its cost structure absolutely in line with its competition. It may not be fair, it may not be what we would want to see, but it is inevitable.
In my mind, Chapter 11 is viable. The assets of these companies are needed by the domestic automobile market. They make over 40 percent, near 50 percent, depending on which estimate you use, of the cars driven in America. They can't go out of business completely.
Wednesday, November 19, 2008
Here is an excerpt of Peter Morici's address to the Senate hearing on the auto industry bailout: