29 Jun 2009 What Killed GM
Peter includes the role of government-backed unions in his analysis:
…[GM’s management’s] biggest shortcoming… was the failure to take on the unions. No executive in Detroit would dare take on the unions or build a non-union plant in a southern state. Now, there is a reason for that… That’s because of the government, because of the power of the United Auto Workers on our government. If one of them tried, they would have been run out of town. And now we have the ultimate manifestation of it where the UAW has an equity stake in the company and I predict the results are just going to be worse and worse.
Dittos to Peter on that one.