International News

Airbus Seen As Positive Example Of Govermant Ownership

In a front-page artice, the Washington Post (6/22, A1, Faiola) reports with the US goverment "taking a controlling stake in General Motors, the titan of American private enterprise is, at least temporarily, joining the ranks of semi-nationalized companies." Economic evidence "suggests that state involement in industry rarely works best. But a number of high-flying ventures have defied those odds, offering a glimpse at the costs and benefits of bringing goverment into the boardroom." In the "same way that goverment money insulated Airbus from market forces during hard times and allowed it to forge ahead with innovation, GM's new patrons in Washington might help the automaker jump-start its deficient research and development operation and trim underperforming brands.