"Ross said that we as a nation are to blame for GM's problems (I am not making this up) because we do not have a national industrial policy. The US allowed other automotive companies to build plants in states that had lower labor costs, and that is the reason GM is uncompetitive. GM pays an average of $33 an hour, and those selfish other companies pay a mere $19 plus a host of benefits." - John Mauldin (link). Thanks to Cluster Stock for the link. (Image: Graph of GM from 1962, with a peak at $87 in 1999, to the recent price of $3.10 during after hours trading).
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2 comments:
With sky-high oil prices, why did it take them so long to make some fuel-efficient cars is beyond my comprehension. In as much as its true that not-bailing-out GM is going to have serious repurcussions, its high time someone starts making high-salary-top-management people accountable for their stupid decisions. Good article and good links. Thanks CP. I also commented on your margin call comment below. "Things have never.."
Yes, yes. How the situation got so bad makes me wonder as well. Part of me just wants the company to go bankrupt, have the government cover all or a reasonable amount of GM's pension obligations, and then allow someone to purchase the factories and labor, invest in R&D, and let them build a new company from the ground up. If Toyota can be profitable, I don't see why Detroit cannot.
Anyway, thank you for the replies.
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