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How Detroit Drove Into a Ditch

Wall Street Journal Original article ›

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Deep labor problems that have plagued Detroit automakers throughout the years since the 1930 labor-management strife. The labor advantages enjoyed by the Japanese and the Germans after postwar compact between labor and management in Japan and Germany, that was continued in plants in the US in locations with no labor history. The higher executive compensation and privileges of management in the American management model that did not exist in the Japanese and German models that created another level of distrust of management. The recovery staged by Chrysler in the 1980's withthe minivan and by Ford with new models. The recovery again in the 1990's by Ford and GM with the sports utility vehicle and pickup trucks. And the collapse Chrysler, GM and Ford face today, facing bankruptcy or government bailout on a large scale as rising oil prices and the need for conservation lead to a collapse of the sports utility and pickup market and shift to fuel efficient passenger cars.

GM (General Motors) Restructuring in 2009.

01/24/2008

After the first government loan General Motors begins serious restructuring in February 2009 as mandated in the loan terms. The government oversight over the restructuring.

Grouped Articles

GM Shares Sharply Down as Western Europe Drags

Wall Street Journal 10/09/2008

Howes: Market drop revives talk of bankruptcy

Detroit News 10/10/2008

U.S. Auto Shares Plunge on a Grim Sales Forecast

New York Times 10/10/2008

GM to hasten factory closings

Detroit Free Press 10/14/2008

General Motors, Driven to the Brink

New York Times 10/26/2008

How Detroit Drove Into a Ditch

Wall Street Journal 10/25/2008


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