In today’s (4/1/09) WSJ is an OpEd in which it is pointed out that the “bailout” of Detroit is simply tax dollars going into the UAW’s coffers, pure and simple. It has little, if anything at all to do with the success of domestic auto production.
The column is here (requires a subscription).
Many of my friends already have told me they’ll never buy another American car: They don’t wish to buy a product from the American government rather than private industry. One assumes these friends are not unique across the American landscape.
Can one even imagine going to the government on a car warranty issue with any hope of success?
Of course not; don’t be silly.
If Big Three shareholders desire continued returns, they must close North America operations however and as quickly as they can and offshore all GM, Chrysler and Ford production.
Doubtless Congress and The One immediately will find a way to order the unionization of all remaining (foreign) auto manufacturers in America (Toyota, Honda, BMW, Mercedes, etc.), who then also will close their plants and go overseas to developing nations, thus ending the American auto industry with ripple effects throughout the supply chain and those towns unfortunately still supporting the soon-to-be-extinct domestic auto industry.
If one can manufacture a ruler in China and ship it across the ocean for less than it costs to manufacture it here, surely all cars can will soon be manufactured elsewhere and shipped here at a cost lower than government-run domestic production.
Once all manufacturers are competing (elsewhere) equally and globally – and without the RICO twins of the UAW and Congress – competition will ensure the best, safest and cleanest autos possible. That is what the market wants. If you doubt the market wants affordable green cars, recall that seat belts and other safety features originally were mandated and now are competitive advantages. People want green cars, but only at affordable prices.
The government, of course, does not understand – or, possibly, is unable even to conceptualize – this marketplace issue.
Once again, government interference will distort the market, cost American jobs, decrease wealth, and lower the ability of future American generations both to compete and to provide for their progeny the lifestyles provided us by our parents and grandparents. See what happens when Boomers run Congress?
Change we can believe in.