The only way the Big Three can have my money

The only way it makes sense to bail-out the poorly-run and dying US automotive industry is with severe requirements attached to the money. Here’s what I would do:

1. All three must immediately enter Chapter 11 and the US Gov’t becomes the debtor-in-possession.
2. During Chapter 11, the US Gov’t will guarantee the warranties of any cars purchased.
3. Each automaker must close 40% of their factories, 40% of the dealer network and discard at least half of their brands. It doesn’t make sense to keep Buick and sell Volvo. No sacred cows. Under-performing brands are gone.
4. By the end of 2010, no single non-truck vehicle can be sold that gets less than 40 mpg
5. The existing UAW contracts are immediately terminated. The US will assume normal pension benefits to existing retired and terminated workers. All wages, heathcare, and so-called “job bank” programs will be re-neogtiated in accordance with the bankruptcy process. The new UAW deal will reduce wages and all-in labor costs to be 10% less than that of Toyota.
6. Every worker terminated as part of the restructuring can choose to enter the largest job/skill retraining program since the WPA. For one year, a US-sponsored program will retrain every worker to learn how to build solar panels, nuclear reactors, and other clean-tech products. During that one year program, each participant will be paid a fair wage equal to the equivalent salary of a similarly-skilled Toyota employee. At the end of the one year retraining program, the worker is on their own and may have to move to join the green tech companies that will quickly emerge from this program.
7. Each company will sign an agreement forbidding any lobbying on CAFE mileage standards, pollution standards, or OSHA worker safety rules for a period of 25 years.
8. Every C-level and EVP executive in the company is immediately terminated without severance and may choose to enter the job retraining program. Key executives may be selectively re-hired at adjusted salaries but will likely be replaced.

The companies will emerge leaner, stronger, and focused on building competitive, high mpg automobiles at reasonable cost structures. Unless a litany of conditions such as this is placed on all the capital offered to the companies, I am adamantly opposed to a bail-out.