The fate of GM and Chrysler is now in their hands. Obama has told them the hard truth -- either make major changes that are needed to remain viable, or go under. A lot of missteps have gotten them to this point, and it will take a lot of work to put them back on the path to viability again. But this is what happens when a group of three companies has a virtual monopoly on the production of American cars for many years. When they go under, the whole economy is damaged. And the government rewarded this monopolistic behavior on the part of the Big Three by doing nothing to encourage competition through the formation of new companies. Thus, there was no incentive on the part of the Big Three to innovate and adapt. Now, they are on the right track, but it is like a deathbed conversion -- it may well be too little too late unless they can make the structural changes that are necessary to survive.
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