All the industrial giants signed deals with the big labor unions during their glory years that they no longer can afford to pay for. Airlines, steel, automobile industry.
If GM can shed some of its union rules and constraints via bankruptcy, it will be in healthier shape.
On the other hand, that still won't change the problem that they make lousy cars. Ford and GM invented the business, but they got fat and lazy, and the Japanese have come in and cleaned their clocks.
Finally, there's a real question whether free trade is workable. Maybe we need some tarriffs, painful as it would be to restore them at this point.
http://www.gm.com/company/corp_info/global_operations/asia_pacific/chin.html
seems china is doing well
This has to be the primary reason. Of course the taxpayers are on the hook for some of the pension obligations via a federal agency.
"Finally, there's a real question whether free trade is workable. Maybe we need some tarriffs, painful as it would be to restore them at this point."
Worst possible solution.
You just explained why. If we focus on protecting companies like GM, in short order the whole country will be poor. how could it be otherwise when we prop up inefficient companies? We end up like France.
I give GM credit for one thing---consistancy: they do everything wrong.