Why do you want bankruptcy for GM and Chrysler?

Will it make GM stronger, smarter?

The other day I read that 2 out of 3 Americans want GM and Chrysler to go into bankruptcy? Why?

To punish the UAW? Bondholders? Corporate boards and executives? All of the above?

Ultimately, do Americans believe that bankruptcy will make these automakers stronger? Or, do they hope they will simply just disappear?

Even if these companies successfully emerge from bankruptcy, does it change your opinion about their new vehicles, particularly autos like the Chevy Volt?

How the UAW helped kill hybrids, small cars and GM

Partners or enemies

My father spent his working years in a union. My wife is in a union. I don't hate unions, but over the years, I've always wondered how workers and companies could be expected to succeed when the workers and companies habitually acted as if they were in battle against each other.

In terms of the auto industry, I've long been interested in the principle of kaizen, which is so pervasive in Toyota's auto business. This philosophy of continuous improvement has enabled Toyota to develop more reliable automobiles more quickly than their US counterparts. And it has represented the antithesis of the UAW.

According to a fascinating Newsweek piece, this adversarial relationship killed GM's early '80's interest in developing a new kind of car company focused on small cars - even hybrid cars - that could compete with the Japanese, while creating a new relationship between the UAW and GM partially based on incentives and success. This was to be the future and the salvation of GM. It was called Saturn.

The original idea didn't survive, but the reasons for its failure were not just limited to corporate ineptitude, but the stubborn, refuse-to-adapt-to-the-future UAW mentality. However, had the original intent of Saturn succeeded, according to Newsweek, many analysts speculate the US auto industry wouldn't just be free from the tentacles of bankruptcy, but far more successful and fuel efficient.

Cars, Unions and Hypocrisy

What about Union solidarity?

Dropped something off at my local school today, and I was struck by the lack of American made cars in the teacher's parking lot. Teachers in LA are beginning strike talk - over conditions created by the recession - yet they don't buy American-and-UNION-made cars? Isn't their lack of UNION-support hypocritical?

At least two of the foreign cars were hybrids. 

UAW Strike Talk - Go ahead, I dare you. I double dog dare you!

What could a strike accomplish?

With affirmative rulings from the Supreme Court and Vermont, it is only a matter of time before some states - some of the most important states in terms of automobile sales - begin setting limits on CO2 emissions and, therefore, fuel economy.

Likewise, Europe is also seeking aggressive changes, and automakers have noticed. The Frankfurt Auto Show was a lovefest of green automotive options, such as hybrid vehicles, electrics, clean diesels, etc. Peugeot even announced a production date on diesel hybrids. That's right, diesel hybrids. Turbo-charged clean diesels will not be enough.

Even American automakers are changing. Chrysler, a hybrid laggard, has created a new division that is now focused on creating unique hybrid vehicles. GM is quickly striving for plug-in hybrid vehicles, such as the Chevy Volt. Ford's Volvo unit also has a plug-in hybrid.

The automotive industry is on the verge of a massive revolution, and the UAW needs to be part of that change, to help lead that change. Instead, the UAW is talking strike.

Now, I know this is probably just posturing, just doing things the way they've always been done, but now is it not the time for the way things have always been done. Of course, why should America be surprised when Ron Gettelfinger tells the Union it's either fuel economy or jobs?

C'mon Ron! The only way forward is fuel economy. So figure out a way to work with the Big 3 and make it happen. Or, go ahead and strike. Do something that most autoworkers don't want. It'll be the quickest way to remove some of the UAW leadership - the quickest way to change.