Wednesday, October 26, 2005
GM parts co. bankrupt - morally...
What's really bankrupt is the leadership of large-corporate America.
Come-on, American car manufacturers are not loosing jobs/market to Japan and Germany because of 'cheaper labor'. We've already outsourced a lot of factory jobs (not all thankfully).
The foreign companies that have been eating our lunch for the last 3 decades come from countries that are considered bigger welfare states than our own... with expensive labor.
The crux of the problem: How can the Japanese, 6000 miles away, better anticipate the American auto market than executives sitting in Detroit?
The answer: Auto industry management is only concerned about keeping the company around long enough to collect their large salaries, outrageous pensions and golden parachutes. There is no incentive to innovate -- to anticipate the market. Large company CEO salaries aren't based on corporate profits -- we've seen that for decades now. As long as you know the right board members you can hang in there for a few years, make your millions, and leave the company/employees holding the bag.
We all know that Delphi executives will make our very well throughout this bankruptcy. Isn't it funny that the Congress just passed laws making it far more difficult for you or I to file for bankruptcy, but corporate America can do it and have us taxpayers pick up the tab (can you say Airline bailout? Saving and loan bailout? etc?).
This rant isn't directed at American companies in general. But once a company hits a certain size (HUGE) its no longer about innovation, efficiency and quality. It's about political contacts and downsizing while lining your own pockets.
Unfortunately these are the very companies that have the most influence in our government.