GM should be allowed to fail

In the 1970s the European car industry went through a very painful process of modernisation, automation and quality control - the US decided not to face the music but to subsidise their industry instead - giving tax breaks for buying gas guzzlers.

The result is a lazy industry producing a product that won't sell outside the US

For years a large part of the US car industry has only been kept afloat from the profit of selling credit on the new cars - cars made at a loss - now the credit has dried up, so has the profit and sales.

Making poor quality cars at a loss to sell credit is not a good business model and they need to face up to it.