Well, not really, they want a coordinated bankruptcy.
But anyway, I've been saying to my friends for a while that a bail out now is not a good idea. They should wait for them to file for bankruptcy, THEN bail them out. The reason being, filing for bankruptcy means voiding all contracts, including those to labor unions.
Ever wonder why American car companies do so bad compared to foreign ones? It's not because their sales are down, in fact, American cars sell pretty well, even overseas. The reason is the unions have made cost of production so high that instead of earning money, they lose money. Recent studies have found that people with highschool or below education working at the manufacturing plants at GM and Chrysler are getting paid somewhere around $40,000 - $70,000 a year... That's more than some people make with a college education. A guy mopping the floor was getting about $70 an hour. All thanks to the labor unions. While this may seem like it's helping the workers, how much do you think it will help them when they are out of a job because the plant closed down? Yah, I'm sure they didn't think of that one...
Foreign car companies don't have this problem because they don't have unions screwing them over. They pay these people the salaries that is reasonable. It is not reasonable when a car company actually LOSES $300 for every car they sell because they are way over-paying their workers. Out-sourcing has been happening since the 70's and it's because of this problem. And I don't blame them. Companies are trying to make money, not lose it, so unless they get rid of the unions or at least limit their powers so people get reasonable pay, I am completely for out-sourcing.
So I think this is a great idea if it means ending their contracts with unions. I say they should be allowed to hire their work force without the unions. Hey, it's the people's choice, work for them, or stand up for the unions and don't work at all. It's up to them.