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Big 3
Big3.. Its my belief GM failed because of their Business Model.. period.
They use to "build the cars consumers wanted," but that stopped long ago. When they started hearing from consumers, "We wanted fuel economy cars," they kept building gas hogs, as prices of fuel went above $4 a gallon (here).
I saw GM failing over 20 years ago. When a company violates the laws of economics, they are doomed to failure at some point in time. GM (& the other car companies) paid most employees on the assembly line more then they were worth. A high school drop out could go to work there, & make more then a school teacher ($70 + per hour with benefits). The only industry where the uneducated could make that kind of money. When the companies are doing well.. that can float for a while.. but when the company is loosing money because no ones buying their cars (because they're not listening to consumers).. that pay scale will kill a business.
Then we had the UAW. Every year demanding more, & more.. when the company is making less. Instead of making concessions (until the end of course) they recommend striking, throw the vote out, & the vote says "STRIKE". Thus cornering GM, & the others to give in to demands. What amazes me is.. the last time GM employees went on strike, GM told them they couldn't afford anymore, & its possible they'd have to shut down." They went on strike anyways. Thus putting themselves out of work. The UAW themselves had to know the out come of striking, yet put their members heads on the chopping block anyways.
I feel bad for the families, but for the employees who kept voting to strike, I have no sympothy. It was their greed that put them out of work.
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