Thanks to its lobbyists, GM did not confront its high labor costs and failed to adapt to a changing market. As Thomas Friedman of the New York Times put it:
"...the entire Michigan delegation [...] voted however the Detroit automakers and unions instructed them to vote. That shielded General Motors, Ford and Chrysler from environmental concerns, mileage concerns and the full impact of global competition that could have forced Detroit to adapt long ago."GM's very ability to get the government to protect the company seems to be one of the key reasons for its troubles. The question now is whether the taxpayer's money will save GM or, if bankruptcy is indeed the solution, put the final nail in the coffin by helping the carmaker avoid cleaning up its act.
Is the lesson from GM that you can always lobby your way out of a big challenge? Or that government protection can be too much of a good thing?
If the bailout comes, we may not know for a long time.
