Economist Article on US Auto Industry

A great article in the print Economist 6/14 issue about the US auto industry and its impending demise. The article is behind the fee firewall, but some pithy highlights: The GM pension fund is underfunded by $19B, which is equal to the market cap of GM. GM has 2.5 pensioners for every active employee — and downsizing only makes the situation worse. They face declining domestic share. It just doesn’t look like there is a way for them to survive this. Ford is in little better shape. They both seem like bankruptcy candidates soon, which means the pensioners will get screwed. I hope the government doesn’t step in and try to save to corporate entities, I’d rather see our tax dollars go to protecting the pensioned workers and towards retraining the current workers, rather than protecting the corporate entities.