Tort reform must be a part of automaker bailout
The unions appear to be willing to make some meaningful concessions to the Big Three. The chastened executives appear to be willing to make concessions on their obscene compensation. These will help America’s automobile industry survive.
But what concessions is Congress willing to make? When the auto companies return to profitability will they continue to insist that they pay taxes that are among the highest in the industrialized world? Will they ease up on CAFÉ standards and other onerous regulations which put US companies at a serious disadvantage with foreign manufacturers? It’s obvious that much of the auto companies’ problems are caused by over zealous politicians who have believed they were an inexhaustible source of tax revenue.
Will federal, state and local governments reexamine laws and regulations which have made automobiles one of the favorite targets of out of control litigation?
The auto companies may have been slow in the past to respond to changes in the marketplace. But the heavy hand of governments has helped to push them close to extinction. It’s time for governments to make their concessions as well.
David B. Smart
Ballwin

