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Failed City Detroit grovels for bailout


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I heard once that at some point in the 90s someone asked a top executive at Cadillac if they'd analyzed the Lexus vehicles that were eating their proverbial lunch. It wasn't until then that they got a Lexus and disassembled it to see what innovations they were competing with.

 

This was told outside the context of anything union related, but it's just an "I been told" anecdote, so take it for what it's worth, but I can't help but wonder if the engineers weren't enjoying the disconnect between performance and job security/compensation only found in union and government jobs, if they might not have gotten around to that sooner.

Engineers are not union. When a company is in trouble the "white collar" [non union] are the first to go.

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agreed. but what was the root cause for making poopy cars?

 

the unions and their additional expenses compared to the Japanese didn't have to pay. The Japanese put their money into R&D and building quality. Detroit paid union pensions and healthcare plans....

Harvard MBAs bean counters decontenting and Blandernizing the product- and it might be happening again at GM after they started making decent product again, Bob Lutz offered to un-retire to stop the insanity - of course it's not only an American thing cause it happened at Toyota the bean counters took charge and a bunch of their pushed out engineers fled to Hyundai where they are treated like gods and pushing Hyundai to compete with everyone.

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