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March 19, 2009

Greed caused GM’s downfall

The General Motors chief begging for a bailout says “We will cut costs!” Forty years of corporate greed policy hasn’t worked. They’ve been cutting the wrong costs, squeezing as much profit as they could by building “cheaper” cars.

Americans have the know-how to make the best cars. Using higher-quality parts, which cost more, and better design could yield higher-quality products than the Japanese produce.
American consumers, tired of built-in obsolescence, breakdowns, repairs and inferior products, voted with their pocketbooks. Yes, executive salaries and corporate profits increased, and the bottom line looked good on the surface. Building plants in Mexico with $5-per-hour pay allows lottery-winning-like executive pay, private jets and country club memberships at the expense of the huge number of American workers in automotive-related fields.

The current economic downturn is a perfect excuse to bust unions and eliminate benefits. Executive heads need to roll. Bad companies need to be allowed to fail, allowing smarter people to pick up the pieces and start building the highest-quality electric cars in the world. Maybe they could build GM windmills at the old Leeds plant.

Marc Miller
Kansas City

Comments

red rover

Thanks, engineer, now I know what all of GMs' problems truly are. You can't beat these posts from armchair autoworkers....

Engineer

Mike Thomas
The big problems at GM come from the Heritage costs and the Heritage costs are directly due to the UAW with help from the government. GM is also handicapped by work rules and lack of work place control that its non-union competitors do not have to face. Wage rates and line speed are also competitive problems. If GM goes through bankruptcy these problems will be solved.

red rover

OK, marc, let's bust the unions. No more liveable wages for anybody. 4500 employees at the Ford plant and 2500 employees at the GM plant can work for ten bucks an hour, can't afford to buy what they build (like the auto employees in Mexico), food stamps for everybody of course, no more middle class that is probably helping support what ever you do for a living, atta boy, marc, brilliant.......

Stifled Freedom

I think, at this point, we should cut our losses on bailouts and stop all of them. If Congress can get the stipulations right to prevent the outrage over executives collecting bonuses from tax payer money, then no more of them.

They haven't saved the stock or real estate market and they have not prevented the sharp rise in unemployment. I see all risk and no reward.

Kee

The union cost for medial and health benefits per US cars at $1500 vs. $500 for Japanese cars may be a factor also Marc.

NoMoreMrNiceGuy

Simply untrue. Electric cars will increased the demand for electricity on the grid. Wind and solar power do not sustain enough energy capture or efficiency to support a major increase in demand from the grid.
As for the point regarding costing related American jobs, seems Joe Biden and the sheep that suck up to this clown do not seem to understand the lrger scope of ancillary trades and jobs as related to the coal industry. The so called "green jobs" do not hold the shelf life for long term employment opportunities as it pertains to energy. Unions do not dictate qualitative components rather membership and quantitative. Term,s like "scab" show true ignorance of the gang mentality within unions. People that are willing to work to provide for their families are threatened and ridiculed. The Japanese produce a better product, period. Closed minded union gang mentality and greed is the problem coupled with corporate greed, there will never be any balance. Everyone is out for themselves.

 
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