The Forum > General Discussion > Propping up dinosaurs
Propping up dinosaurs
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I agree with your assessment and no I don’t think 4ltr 6s should be built for a myriad of reasons least of which is the cost of fuel.
As I see it the world has a number of problems the demise of the dino3 is but one example.
The problem with putting pressure on Ford or GM to spend money they don’t have to belatedly start building the vehicles that that they clearly should would only result in the Detroit (who have problems of orders of magnitude larger) to close up and go home…one less problem.
Our immediate issue here is to develop a plan ‘B’. What do we do if they crash?
• Should we temporarily nationalize and make and design little cars for Aus? Joint venture, manufacture unde licenceetc.
• Should we break it up into a boutique car industry?
• A new industry?
Either way we and the world has a problem what do we do if all these unemployed hitting the market and social security at once? It would be foolish to think that there won’t be other dinos who will suffer if not crash as a consequence of the dino3’s demise. Where/who is holding all that debt?
In the context of the financial melt down with an estimated $600 trillion in derivatives out there and an est. World GDP of $55 trillion per year (Fora) their crash would arguably be a catastrophe of Biblical proportions.
Industry policy should se such that no one sector be so vulnerable to one or two companies. Hence I reason that unlimited Corporate growth is merely the vector for the economic equivelent of the first law of thermodynamics.