Engage Both Braincells

Monday, August 15, 2005

A coward dies a thousand deaths

The American auto industry is dead. Like a doornail. The only problem is that the domestic industry is in denial. Proof of this can be found in the most recent proposals concerning fuel economy. The SUX, I mean, SUV, is going to get a pass on fuel economy because it's the only product left that American manufacturers can sell (if they discount the hell out of it). This is a sign. When a large company at scale can no longer compete in its core business, it's time to close up shop. Instead, the lobbying will increase, the politicians will get paid, and GM will die one Toyota at a time (actually more likely one or two percentage points of the U.S. market at a time).

Why? Because gas is expensive and Toyotas are better. Oh yeah, a lot better. Hondas too. I'm not sure if Subarus are better, but they aren't worse and they run for a long time without much trouble.

It's amazing that the U.S. industry still pushes these gas guzzling heaps instead of just innovating and delivering a better product. A hero would compete, a hero might even win. As cowards, the U.S. auto industry will die piece by piece, a point here and a point there. When GMAC is finally spun out of GM, the whole mess will come falling down unless they do some serious deals.

I could easily see a JV of Chinese, German and Japanese firms putting in cash along with a group of oil companies to prop up the charade for a few years in exchange for political favors. But, ultimately cowards die many times, slowly.

If people think that they are protecting U.S. jobs, forget it. Those jobs are already moving to Canada because a huge number of blue-collar Americans can barely read thanks to local control of the schools and horrible Federal stewardship of education.

Someone needs to say it. American cars still suck unless they cost a lot less. Japanese and German cars are worth a premium and month of waiting. Giving Detroit another five years of pollution and gas guzzling isn't going to help anyone and isn't going to prevent the inevitable.

3 Comments:

At 9:51 AM, Anonymous Anonymous said...

ford has these problems too. they can't sell their cars and the quality control is non-existent. every few months there is a recall, 200k cars here, 400k cars there, then we hear about the explorer spontaneously combusting again. and as far as american jobs go, you're better off buying a hyundai.

in the end, market forces will take care of the problem, i'm just not looking forward to financing the slow death of ford & co, which will surely be provided for by the congress.

while on the subject of gm

 
At 6:27 PM, Anonymous Anonymous said...

want more, well, there's more

in summary, suzuki blames gm for poor quality of the cars the gm made for them.

 
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