Well, true -- but the fact is, they *are* making too many cars. That's part of the problem. Every report I've seen says that overcapacity was serious even before the downturn, and particularly bad for GM.
That's part and parcel of the union problem: they desperately need to shed capacity, but due to union contracts it's extremely hard for them to do so. I gather that, in the past, they've agreed to some pretty crazy buyouts just so they can close factories...
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Date: 2008-12-13 09:35 pm (UTC)That's part and parcel of the union problem: they desperately need to shed capacity, but due to union contracts it's extremely hard for them to do so. I gather that, in the past, they've agreed to some pretty crazy buyouts just so they can close factories...