The truth is.....GM made money up until 2006 when oil/gas prices starting going throught the roof. That's when they began to lose sales to their competitors because they did not have a lineup of fuel efficient cars.
The "truth" is that even Toyota is expecting losses at this point -- certainly, you wouldn't blame THOSE on building the wrong cars, right?
Reality? GM was drained, year by year, as a result of horrible contracts with UAW. So, when the first significant downturn hits, they can't weather it. This has nothing to do with building the wrong cars and everything to do with paying employees more than their value.
Because Toyota, Nissan, and others aren't carrying the burden of ridiculous Detroit union contracts, when times get tough, they lose money, but they're not tapped out, so they can come back without bankruptcy.
GM will, ultimately, require a bankruptcy which wipes out its UAW agreements to get back on its feet.
Again, this stuff is way over your head. |
