Even if the idea of another federal bailout of private companies had merit, Detroit’s Big Four of GM, Ford, Chrysler and the United Auto Workers (UAW) union still have not presented credible evidence that a $34 billion bailout now wouldn’t be merely the opening bid. If anything, the “restructuring plans” offered yesterday to Congress made it clear that the people running GM, Chrysler and UAW still don’t get it (Ford may yet be an exception). Clearly, even under the most dire circumstances, there is little will in Detroit to do what must be done to survive and compete – slash labor costs to levels comparable to those paid by Toyota, Honda, Nissan and other foreign automakers to workers at their U.S. plants. Cuts must also be made in the gold-plated benefits received by 540,000 UAW retirees, which far exceed those provided the vast majority of working Americans.

Consider the GM plan of putting its Saab and Saturn divisions under “strategic review,” as Hummer already is, converting Pontiac to a “niche” brand, shuttering 1,800 of its 6,500 dealerships, and amending the current UAW contract. But “strategic review” is an insulting euphemism for “maybe,” much as “revenue enhancement” really means “tax hike.” Why not kill those brands now, along with Pontiac? Similarly, axing 1,800 dealers would still leave GM with far too many, compared to its market share. The UAW contract should be torn up, not merely amended.