That's true enough. But ultimately it is the union's extortion of the domestic auto companies that will put them under. If everything is put into an hourly wage, each UAW member and retiree comes to about $76 per hour. That is unsustainable. In 1980 GM allowed a strike to commence. Three months elapsed costing GM 1,000,000 units. The UAW creates a huge strike fund and then selects its target to strike. They either get their way or put the company out of business. The others quickly follow suit because they know they can't just not operate their factories. Even when a UAW worker is out of work they get 95% of their regular pay. Who else on the planet gets that kind of deal? No one I've ever heard of.

By contrast Toyota and other Asian companies are non-union and have almost none of the legacy costs although the nominal wages are almost identical at about $27 per hour. The cost disadvantage is just enormous at about $1500 per auto. Add to the public perception that GM autos are junk and they can't sell these tainted autos. Toyota, by contrast, could put out a polished dingleberry and there would be a waiting line.

The capitalization of Toyota is about 17 times that of GM. Even Ford's is higher than GM's. Ford also has about 1/2 of the debt of GM. The numbers don't add up. GM is terminal. Liquidate now while it still has a positive net value. Wait a while and everything will be sold off just to pay the debts off. Then nobody, neither the shareholders nor employees get a dime. It's another Enron in the making. Equivalent to a giant Ponzi scheme.