What this illustrates is that the problem with the domestic auto industry all along has been exorbitant labor costs. Or, put more bluntly, the problem has been the UAW. In order to become solvent going forward General Motors most find a cheaper labor pool so that it can compete with its foreign counterparts. That means getting away from the UAW in Mexico, among other places.

In summary, we could have saved ourselves billions in bailouts and kept GM’s jobs in America if the Obama administration hadn’t insisted in essentially taking the company over so that the UAW’s labor contracts wouldn’t be re-negotiated in bankruptcy. Now that the UAW has been so artfully protected by Obama, GM has to go overseas to remain profitable.

And if Obama blocks this move toward outsourcing (and he can’t be that stupid as even he knows he’s now tied to GM’s future), the company will collapse.