Read other letters about this article
What I saw GM do was pre-sell a bunch of business with 6 year, no interest, loans. What that gave them was a bubble, a slump on the downside, and an ongoing interest cost.
How many low down, zero interest, loans do you suppose are defaulting right now?
Management and the unions built themselves into a catch-22. If that wasn't true, they would have had (a) genuine profits, (b) a sustainable model, and (c) growing market share, before the credit crisis.