Ford, Bailout, Pay, and Volvo

With a half-expected Auto Bailout plan in the works, many are speculating as to the exact terms, the executive pay, or the lack thereof involved and other conditions that will have to be mad in order to secure US aid. Ford is saying that it will put greater emphasis on smaller cars, and more efficient cars, along with drastic cuts in executive pay. Upon reading this, I almost burst out of my seat, with the burning question in mind as to why they haven't tried this before? Nearly everyone and their mother could tell Ford they need cars for the 21st Century that are more in line with the Toyota principles of efficiency and compactness. 

Moreover, Ford has considered selling its Volvo unit to help sure up its finances, although currently it has fair liquidity especially considering the current situation. If Ford sells off Volvo, i believe they deserve the first hack at a Federal Bailout, considering that GM is crying about bankruptcy, and won't even accept severely cut executive pay in order to receive aid. 

In conclusion, I think Congress has to be frank with these horrendously run companies, and lay down the law in terms of what they must do in order to receive aid. The failure of these companies occurred due to despicable management, and nothing short of new management or reduced pay until greater performance of the company will help the company. These companies must be required to make better cars, and cut expenses, specifically lavish executive compensation.