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Originally Posted by zed
I heard something that the Gov was going to try to make them take stock to fund those programs. I think that would be good, that way they would also have a vested interest to make the company do good so their stocks would go up.
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I see a big problem with this. The direction in which the government wants to force the auto industry will not be profitable in the next ten years, if ever. The government seems focused on forcing the American auto industry to build hybrids, plug in hybrids, and electric only vehicles. I could be mistaken but I don't believe anyone has built any of these and made any kind of profit. Toyota and Honda, the pinnacle of making profitable vehicles, both loose money on each hybrid they build. I suspect the domestics are not doing any better.
The question is, who would want to be an executive in the auto industry where your compensation is directly tied to profits, but you are either discouraged or ordered to build unprofitable vehicles. Is it a good idea to work for stock in a company where the government is essentially guaranteeing the demise of the company?