One reason companies were run into the ground might have something to do with all those MBA's on the payroll. It might pay to let a few workers into the boardroom or the management meetings, don't ya think?
Management was certainly part of the problem that got the auto industry in the mess. But the government rules on unions has made recovery impossible. And it drove a lot of companies in other industries under or out as well.
I spent the bulk of my career as a supervisor and a manager and understand that job number one for many managers is keeping their own job and the job of those subordinates who make them look good. I know, I spent the bulk of my career in management and was amazed by the pettiness of some very well educated and seemingly intelligent.
That said, other than the obvious (ADA, Minimum Wage Rules, fuel taxes and safety concerns) which government regulations caused the auto industry crisis?
I've noticed in my almost 20 years in sales that the managers were never actually great salespeople themselves.