Quote:
Originally Posted by RamJet502
Yes you can, who do you think made those cost cutting measures a necessity? Too much overhead and non-existent profit margins are a recipe for bankruptcy.
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I don't think GM's been losing cash since the 70s. No, this is a deep set problem. I remember looking at my friend's 84 RX7 and wondering why my 84 Trans Am had such a horrid interior in comparison. This cheaping out the interiors is an old old issue and not the UAW's fault. They didn't design the interior to be cheap. And GM was making money in the 80s. Remember, Perot was on the Board back then and recommended that GM buy Toyota -- GM was swimming in cash.
The overhead and non-existant profits are a recent result of the cascade of business decisions of the past. GM has learned, but the question is: Is it too late? I hope not, but at the same time GM has to get government aid. I fear for GM and the US economy in all this, but the current situation is due to poor product. If GM had great product through the 70s, 80s, 90s and today they'd not have lost half their marketshare and they'd still be able to afford to pay the UAW workers oodles of cash. It's the decline in their marketshare which seriously impacted their ability to meet their various contractual obligations to the UAW. GM did make those obligations when they figured they'd ALWAYS have 50% of the US market.