this 30,00 job cut thing is a big volley to the UAW in terms of opening negotiations for the next contract. between that and the delphi thing......GM is throwing out all it can to position themselves to go to war on those contract talks. my guess if the UAW does not give in a major way, that they will scale back even more and go ahead and say, 'we'll be fine with 20% share, go ahead toyota, etc. have the rest' and we'll see even more non union plants go up in the south.
then, over time, this will happen. the union MAY actually start to get some of these new asian plants unionized. secondly, as toyota, for example, grows to 25% or more market share, they will bear the brunt of criticism from the press and such. Folks seeking lawsuits will target toyota, this they haven't been to used to before..having to staff up to deal with that stuff. Next, the inevitable huge recall because of mone mistake ALA Explorer, GM side saddle gas tanks etc. Toyota has not been hit with a consumer issue like that yet. How would they fight it/respond? Next, if their share increases to 25-30%, all of sudden toyotas are a dime a dozen, like Tauruses and Gm cars are now. I doubt the 'legendary toyota resale' will hold up at all. When toyota reaches the point where 'everybody's had or has one' then the mystique and such is gone. They will no longer be exclusive to yuppies and smart urbanites and professionals....the trailer trash in the next town will have a toyota, too. Will the crate and barrel set be upset when auction values for used Toyos hit the skids? Then we'll see disintegration of the product. Once you hit the big show...you gotta work twice as hard to keep those production levels up there. Will quality take a hit? All those American suppliers, can they match the reveled quality of the homeland ricemakers? Will they have to pump incentives and dump into fleets to justify keeping those all new plants running enough to make money?
Toyota, you asked for it....I hope you can handle it.
GM may just be scaling back for 5-10 years to sit in the weeds, regain the ability to make profit, and rid themsleves of outdated labor issues.