Twentieth-century management guru Peter Drucker wrote 10 years ago in the Wall Street Journal that GM would cease to exist in 10 years. In the last 20 to 25 years, the Big Three have manufactured vehicles that have not been pleasing to the buying public because of quality, warranties and price.
Japan and other manufacturers came to the U.S., and their automobiles have become superior to American-made. Since the 1950s, the American autoworkers’ union has continued to call for worker strikes for excess concessions: wages, health, retirement and time-off benefits. Now the companies cannot compete. Auto management and union staff have failed to understand the principles of competition.
If the American industry can survive, perhaps a GM and Ford merger could become a viable global auto company. Chrysler would fail or merge with another.
The important lesson to be learned by all: Don’t take the American auto buyer and the “bailout”-lending public for fools. They are not.