Is an auto bailout throwing good money after bad?

A reader of my column recently responded to my post, "How will Wall Street react to failed auto bailout". He was vehement in his belief that the proposed, approved, failed and now in-limbo domestic auto aid package amounted to little more than smoke and mirrors. His concern was that the U.S. is becoming bailout nation, and that we are throwing good money after bad, propping up failing organizations like Ford, Chryser and GM.

I for one have no desire to see the Big Three (or at least two of them) kick the bucket. I was once a cynical foreign car groupie and though I appreciate their relaibility and build quality, know they are far from the only worthwhile cars on the market. Detroit deserves props for knuckling down and getting their products up to par. But building quality products is no longer the (only) issue. There is much more to be accomplished by the Big Three if they are to survive and prosper.

The reader's point is well-taken. I think it still remains to be seen whether money is the key to cure the domestic auto industry's ills. Though I am vehement in my desire for the Big Three (or at least two of them) to survive, I remain concerned about their ability to remain viable after a cash infusion. As we've been told, the economic crisis is a global one, so domestic automakers are far from the only ones being affected. So why isnt the Japanese government rushing in to save Toyota, Honda or Nissan? Why isnt Germany calling emergency sessions to keep BMW and Mercedes Benz from the brink of bankruptcy? Why? Because those companies, despite feeling the pinch, are better positioned organizational, structurally and produc-wise, to survive.

We've resisted the idea for a long time, and I'm sure I'll be pegged as un-American for saying this, but nationalizing some of our major entities that are inextricably tied to the financial (and emotional) well-being of this country needs to be considered. The U.S. has become so big, so wealthy and so free-market based, that it now cant get out of its own way. Industries like automotive are so huge and central to the U.S., it is crtiical that the government brings some oversight, and control, into their operation.