GM And UAW Sparring Over Foreign Production Continues

The battle between GM and the UAW over where the company’s cars are going to be built drags on. In a previous post I noted that GM was considering importing a number of cars it manufactures in China which was royally ticking off the union. Things still appear to be rocky.

The NYT reports that the company and union are still engaged in negotiations over the extent of plant closings and permanent layoffs and the importation of cars from Asia, Mexico and other low wage countries. GM argues that this is the road that will get it back to profitability and the union naturally resents that being done on the backs of their members.

The Obama administration, at least publicly, says that it is maintaining a hands-off policy with regard to this debate. The party line is that they want to avoid appearing to be fostering an industrial policy and that their goal is to see GM back on its feet as soon as possible.

This is the opening act in what will likely become a soap opera we’ll see played out many times. Once the union has its piece of the company and the government its as well, we shall see how non-interventionist it is. That policy will most likely warp to fit future political realities not business goals.

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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