Friday, May 08, 2009

US Government and the Plan For General Motors

I thought there were two reasons the federal government was going to dictate how GM runs:
1. GM can't fail because it's important to American national security to have a strong industrial base, and
2. the UAW is a strong leftie constituency.

So why is it that when GM is all done being "restructured", so many more cars are going to be built outside the US?

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company's new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.


Scott McCall said...

i assume it's because GM will spend less on salaries for the workers overseas, and they're more worried about keeping GM in business than giving jobs to american people.

i totally disagree with that

allen (in Michigan) said...

Without GM there's no UAW and without the UAW American organized labor, other then in the government sector, loses much of its political clout.

Both the hierarchy of organized labor and the Democratic party would move heaven and earth to prevent that.

It matters not at all that GM could get along perfectly well, better in fact, without the UAW. What's important is maintaining the current political relationships so to that end the UAW and the Democratic party are determined to try to pump life into the corporation on which they both did their vampiric best.