Wednesday, December 17, 2008
With management that could never see the future, and labor unions that would never let go of the past, the failure of big automotive companies in Detroit was a disaster long in the making. In an insightful article, Rand Simberg, points out that union rules regarding productivity, or the lack thereof, have been a critical factor in the failure of Detroit's ability to compete. Americans can make excellent cars, as has been proven by the fact that the Toyotas and Honda is that many Americans drive were built in this country. But these factories weren't hampered by union rules designed to featherbed and otherwise obstruct the process of being competitive.