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Posts Tagged ‘General Motors’

Why General Motors Can’t Compete (Bankruptcy Edition)

Posted by ageofpericles on April 18, 2009

Crossposted From Age Of Pericles


Which one slashed his own salary?

In his inauguration speech, President Barack Obama waxed poetic about topics like sacrifice. While he clearly understands such a concept as an abstract, real-world follow-through has been limited to the upper quintile of American economic society; both Edward Liddy (AIG CEO) and Rick Wagoner (GM CEO) cut their own salaries to $1, yet both were harangued as convenient targets of populist anger. In GM’s case, it’s time for another party to make a sacrifice- big labor. The fact of the matter is that deposed CEO Wagoner’s salary had little impact on GM’s economic viability, while tremendous labor costs are drowning the company in red ink. Let’s look at the numbers.

Posted in America, economy | Tagged: , , , , | Leave a Comment »

 
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