General Motors Going Overseas and Taking Heat

GM has received billions from the federal government in the form of bailout money. Now the giant corporation is taking heat over a new plan that proposes more manufacturing overseas.

General Motors faces a conundrum in that while production of autos in such places South Korea and Mexico greatly reduces the labor costs, American citizens may view such a move as untoward. "It's an almost impossible dilemma," said Robert Reich, former labor secretary. "GM is a global company - so for that matter is AIG and the biggest Wall Street Bank. That means that bailing them out doesn't necessarily redound to the benefit of the U.S. or American Workers. More significantly, it raises fundamental questions about the purpose of bailing out these big companies. If GM is going to do more of its production overseas, then why exactly are we saving GM?" President Obama's auto task force will have a strong voice in the decision that GM will take regarding this dilemma, but it offered no time line as to when the decision would be determined.