If you aren’t the only one a bit confused by GM’s inability to get a better deal from the UAW in regards to health care costs, then check out a Daniel Gross penned article at Slate.com. Gross writes:
GM has a pathological need to produce and sell cars—even at a loss—because it needs the revenues. For decades, GM has fought a vicious—and losing—battle against domestic and foreign competitors to maintain its once (and still) leading market share in the all-important North American market. In recent years, GM’s leadership has repeated the mantra that if GM could only retain market share in the short-term, many of its long-term problems will go away.
Unfortunately this GM story is not going away any time soon.