Is it becoming reality?

Back in 2009, I pointed out (as did Cold Fusion Guy) some big issues about the UAW bailout of 2009, starting with the fact that the bailout was not of GM and Chrysler, but was rather of the UAW and fat wage/pension/etc., payouts to unions that had helped put President Obama in office.  That agreement left systemic problems in place that I predicted might even result in Chapter 7 bankruptcy.


While thankfully that hasn't occurred, today GM announced workforce cuts of around 15% of workers, the closing of five plants, and that the Chevy Cruze, Chevy Impala, Chevy Volt, Buick Lacrosse, and Cadillac CT6 will no longer be produced.


The question, really, is whether this is the UAW tax or something else.  In this case, GM asked for 8000 workers to accept buyouts, but only 2250 did.  Going way out on a limb, I'm guessing that the huge pension cuts for salaried workers in 2009-2010 made them unwilling to take a buyout that might be snatched from them--and that has everything to do with Obama's UAW bailout, which maintained pay scales that cost GM $25 more per hour than Toyota and Honda pay in our country. 


Others might point out that this also has a lot to do with the fact that GM doesn't really have anything to compete with Honda or Toyota sedans, or frankly with Mercedes, BMW, Audi, and Lexus luxury vehicles, and while I'd agree, I'd also point out that engineers worried about being laid off, and who have seen former colleagues get screwed  ripped off by the Obama administration, just might have something getting in the way of top quality work.  Yes, we can, at least in part, blame the UAW bailout for the fact that GM doesn't have a Corolla or Accord in their stable. 


Sad to say--and I write this as the owner of two GM vehicles and the son-in-law of a UAW retiree--I don't foresee good things for them in the future unless this changes in a major way.