GuM

I have written skeptically about the future of General Motors in the past … see: Government Motors.  Now we see that the U.S. taxpayers are about to take a $10 billion haircut on their General Motors bailout … whereas the United Auto Workers (UAW) will make out like the bandits that they truly are … see: Detroit News Story.

Actually, if it were not for the popularity of GM products in China (a baffling development, see: Bloomberg Story), there would be a considerably larger gum-up of taxpayer accounts.  To put things in perspective, the 1979 government bailout loan to Chrysler under Lee Iaccoca totaled $1.5 billion … which was repaid in full … see:  Washington Times Story.

I still strongly believe that, at some point, the fact that the UAW is part of the management structure at GM will eventually spell its downfall.  It was the short-sighted concessions that GM management gave to its unions in days past that spelled its previous financial collapse.  And, I predict, future labor contracts will be even more tainted by this current union self-dealing.  It’s inevitable.