GM fate already sealed

GM is now poised for deja vu.Nothing of substance has changed for the new GM.They won't be able to produce a profitable car.The UAW has more influence than ever before.The Government will now introduce more regulation and oversight than ever before.The corporate hierarchy is still intact with an insider at the helm.I see no improvements.Sure,the debt is being set aside.But the debt is essentially irrelevant because the bailout turnstile is now wide open.The green car push will now be job one and the carbon tax and VAT taxes will become part of the price tag.So,the business plan will be focused on selling cars the majority of customers don't want and overpriced to boot.

The UAW has only agreed to a wage freeze.In my opinion,the UAW carries the largest share of the burden here.Just think of why they exist.Job security,high wages and benefits are always front and center.Efficiency and productivity are discouraged.I was a union worker and served as a steward myself,so I do speak from experience.I remember "work to rule".We were told to follow every possible safety precaution and to do every task 100% by the book.Working quickly to meet deadlines was not allowed.No working thru breaks or doing someone else's job.Every union member knows that these tactics are designed to employ the maximum number of workers and thus increase the unions membership and bargaining power.The jobs bank is well known.I won't go into all the different ways the union increases membership,just suffice it to say it was priority number one.

Number two for me has to be Government regulation.CAFE,safety,emissions,etc.The burden of excessive regulation can kill any business.And it was all just a warm-up for what is upon us now.Again,I won't go thru all the history here as it would take too long.

Of course,corporate mis-management is in the mix as well as the culture problems and waste are well documented.The point is that all the elements that led to the failure of GM are still solidly in place.Prepare for bailouts for as far as one can see.More to come...