BulletWounD
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Re: Beyond AIG: A bill to let Big Government set your salary
The worst corporate decision they ever made was the decision to stop specializing in manufacturing automobiles and go into the finance market (GMAC). This kind of scope creep will kill any company.
You can't ignore the other factors though. The cost of labor in America is very high and the UAW is out of control. Unions in and of themselves are not a bad thing. They actually have some advantages. The problem is when they grow large enough to extort an entire industry and make demands that are not only not in the best interest of the company, but contrary to their own self interest.
It's hard to compete in general without innovation like GM has done. They lag in quality, safety, and innovation.
The corporate decisions in GM are what caused it to fail.
The worst corporate decision they ever made was the decision to stop specializing in manufacturing automobiles and go into the finance market (GMAC). This kind of scope creep will kill any company.
You can't ignore the other factors though. The cost of labor in America is very high and the UAW is out of control. Unions in and of themselves are not a bad thing. They actually have some advantages. The problem is when they grow large enough to extort an entire industry and make demands that are not only not in the best interest of the company, but contrary to their own self interest.