It’s very, very serious. Holman Jenkins of the Wall Street Journal writes about the firm’s difficulties. The root of the problem isn’t foreign competition, gas prices or anything else except the vast giveaways to the UAW. And taking it a step further, the UAW is in a position to kill the goose that lays the golden eggs because of the Wagner Act (National Labor Relations Act) that has led to the “encrustation of labor relations.” You can read it here.
Wisely, the Japanese companies that build cars in the US have always avoided the UAW, despite the latter’s efforts at “organizing” the Nissan, Toyota, and Honda plants. That’s why they are profitable and GM and Ford are drowning in red ink.
