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.