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.

4 comments:

Intellectual Insurgent said...

There is a Republican blogger out there who says that Ford's declining SUV sales have nothing to do with rising gas prices but, rather with eco-nazis preventing drilling in Alaska and unions keeping up the cost of labor. Even when there is a rational answer, they still dream up nonsense to rant about.

I agree with you to some extent, but you caught me in the middle of reading The World Is Flat by Tom Friedman. It is very interesting and he addresses the differences between the companies who adapt to the flat world and continue to innovate and succeed (e.g. UPS, HP, Microsoft) vs. a company like Ford that is way too accustomed to corporate welfare.

The bankruptcy law is another example of how much these satan-worshippers hate people. I wrote a post on this a while back:
http://intellectualinsurgent.blogspot.com/2005/04/sticking-it-to-middle-class.html

Reign of Reason said...

I'm just starting that book too: Friedman's "The World is Flat".

From what I've read so far I think it's gonna be good.

I've gotta check out your post.

arizona mortgage interest rates said...

Hi Fellow! I was just searching blogs,and I found yours! I like it!
If you have a moment, please visit my arizona mortgage interest rates site.
Good luck!

Meg Taylor said...

Hey, you have a great blog here! I'm definitely going to bookmark you!
I have a bankruptcy Maine site.
Come and check it out if you get time :-)
Greetings.