No doubt the product was subpar. It tends to get that way when the core of your business becomes union negotiations. Just a little shift in focus. Plus not everyone is working in the same direction. When times got tough, unions would strike. That’s not exactly gonna help the situation or overall health of the company. I remember quotes from people in the local paper saying the union would rather risk the plant going under than to have to pay any healthcare premiums. We’ll, the plant went under not too many years later.
The focus of the Detroit OEMs was not on unions, in fact when the OEMs started treating the union as a partner, everything including profits soared.
OEM’s were sometimes distracted by petty incompetence at the top of the company.
Anybody remember GM chairman James Roche making a public apology, and paying a sizable settlement, to Ralph Nader after it was revealed GM had spied on Nader and tried to discredit him with a honey trap? All because he wrote a book criticizing safety…
Anybody remember Ford personnel making intrusive visits to family homes to decide if employees were meeting Henry Ford I’s family value standards? Or Ford’s Harry Bennet’s goons beating Walter Reuther bloody (or the drive-by assassination attempts at Reuther’s home?).
These kinds of actions didn’t improve product or quality and cast long shadows over employee relations.
What caused detroit it’s biggest problems was under investment in keeping plant & product fresh and new technology and fighting every regulation that came down the pipe (FMVSS, smog, unleaded, CAFE, airbags, etc. it was always, “we’ll go broke if this becomes mandatory”.)
If Detroit had embraced regulation and used it as a barrier to entry, foreign OEM’s with smaller capital budgets would have been delayed entry.
Instead not doing this, and not keeping up with quality trends and techniques led to quality slippage and hat opened the door for foreign competition.
As for companies like Blackberry, they committed the fatal sin of not developing touch screen first, and then laughing for years at the concept. There is a business maxim that says be the first one to develop that which disrupts your business before someone else does and takes it from you.
Neither Detroit OEMs nor blackberry respected that maxim. Detroit lives on starvation rations after ceding 3/4 of its domestic market and blackberry went bust after losing all of it.
None of this was really due to unionizing as the union doesn’t make product design or strategy decisions.