Let Them Go Bankrupt!

According to a new report from USA Today, American automakers are now operating at “maximum capacity.” Some are canceling annual shutdowns and adding new shifts to keep up with demand, which is now projected to reach 14.3 million vehicles in 2012.

Automakers are pushing factories and workers to the limit to try to meet burgeoning demand for new vehicles.

Some plants are adding third work shifts. Others are piling on worker overtime and six-day weeks. Ford Motor and Chrysler Group are cutting out or reducing the annual two-week July shutdown at several plants this summer to add thousands of vehicles to their output.

“We have many plants working at maximum capacity now,” says Ford spokeswoman Marcey Evans. “We’re building as many (cars) as we can.” [...]

The automakers’ problem now is one they welcome:

It’s hot demand. Sales for 2012 are estimated at 14.3 million vehicles, according to IHS Automotive, up from 12.8 million last year.

For perspective, vehicles sales were at a 27 year low when President Obama chose to rescue the industry rather than let it fail. Now they’re struggling to keep up with demand.

Mitt Romney, meanwhile, either believes we should have let them go bankrupt or that he deserves credit for their rescue. He’s not really sure. He’ll get back to you after discovering which line polls better.

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  • http://phydeauxpseaks.blogspot.com Bob Rutledge

    He (Romnoid) doesn’t remember what he said, but he believed every word of it.

    Hmmmm…. “I believe every word of it.” That could be interpreted to mean that each single word is an actual word, without ever looking at the sentence/paragraph/speech/sound bite. The ultimate in Rovian parsing.

    Or android algorithms.

    • D_C_Wilson

      Why should he bother to remember what he said yesterday? Tomorrow he’ll believe ten things that are completely different.

  • http://www.facebook.com/people/Oscar-Jimison/100001431764474 Oscar Jimison

    Romney’s original stance on the auto bailouts is exactly why his time at Bain is relevant. The “structured bankruptcy” that he touted was exactly what he did at Bain, often resulting in the life being sucked out of a company leaving the employees out of work.

    • Victor_the_Crab

      What’s even more interesting is that Bain was offered GM when it filed for bankruptcy and didn’t want it. Good thing too!