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.. makes sense now that I think of it.. but damn that's going to suck for all those workers.
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I agree it will suck. But lets face it. To be competitive with Toyota with the current labor GM has three choices: Sell the car at a loss, reduce content by the difference between the twos labor costs, or not sell cars. Short of repositioning themselves to sell luxury cars where you buy with your heart their screwed.
Its not all the unions fault though. Management was dumb enough to agree to it.
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But the common perception in the market place will be to not buy cars from a bankrupt car company
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Based on what? If that was the case you would think the purchases already would have stopped.. Is there any difference between a company that declared bankruptcy and one everyone knows will? That ignores the fact that the company itself could be parceled off to other buyers eliminating the bankruptcy concern all together. The reality is, the only real losers in a bankruptcy are the employees. In a bailout there is no winner as the conditions that caused GM to fail cannot be removed without bankruptcy.
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When WWWIII breaks out (and it will) the US needs to not be caught napping without any local oil production, steel production and auto production plants.
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First off the US auto plants won't go away. They will be bought and run by others. GMs assets well exceed its market cap afterall, and buying the line to sell the cars doesnt mean you have to take the UAW.
Second off, dpmestics are not the only local auto production. The Honda, Toyota, etc plants are not going anywhere and could serve the same purpose. Local oil production hasnt gone away either, except when the enviros go nuts. Theres little to no evidence of lack of availability of manufacturing capacity. Manufacturing capacity has reduced of course. But it would have even without foreign competition. The productivity growth of our manufacturing is not good. Case closed.