What planet are you living on? GM almost went out of business because the United auto-workers drove up input costs to the point that they could make no profits. Not small profits. NO PROFITS.
You're so blinded by your ideology so you even have to make stuff up.
In reality, GM went out of business because they made cars nobody wanted to buy.
(My theory here is that it was because they were too late to prioritize fuel economy, in turn because the US has artificially deflated oil prices.)Their European competitors paid their worker higher wages during the same period and they somehow managed to survive. That does not fit your description at all.
Actually, I agree with your pointing out the stupidity and the myopic nature of Billyjoeallen's assertions; however, we cannot really be sure of the problems of GM exactly. Kind of a snow job of a situation. GM pretty much had control of its books, the Union was forced to make concession while NOT being allowed to see the books, and the government intervened to bail out GM and to cause workers to take large ass concessions in order to save the company. Surely, some government officials or government trustees may have found out financial circumstance of GM, but the public did NOT find out these matters.
IT may be correct that GM was NOT making competitive cars, but also there are a large number of other problems in the USA and maybe even other ways that GM may have been spending and or siphoning off money (quite separate from the expenses of labor - take CEO pay for one thing).