Warren Buffett: automakers must rethink business model

Warren Buffett, eminence grise of the US financial community, says that whether in bankruptcy or bailout, the US automakers must completely overhaul their business models. He would prefer a bailout with stringent terms to a bankruptcy. He would rather the President appoint someone to negotiate terms that include a business solution. He would also force management to invest significantly in a new auto industry - that would incentivize them to make it perform.