Fast shift needed to save U.S. autos

Washington Times ^ | February 28, 2006 | By Kevin L. Kearns/Alan Tonelson

[Rennes Templar]

The accelerating woes of Ford and General Motors and the ongoing crisis in auto parts have produced vows from Detroit that business-as-usual won't continue. Yet unless business-as-usual in U.S. trade policy ends, too, and Washington imposes sweeping emergency tariffs on imports of manufactured goods, the American-owned automotive industry will soon disappear, and along with it much of the rest of America's core manufacturing.

For a quarter-century, Washington has dodged the biggest trade problem plaguing domestic automotive producers: an import tidal wave of vehicles and parts from rivals enjoying a host of advantages unavailable to U.S. automakers. Although Japanese, German, and Korean automotive companies sell freely to the U.S. market, their own home markets have been tightly protected.

Since the import flood began in the 1970s, U.S. leaders have lacked the will and economic savvy to counteract these unfair competitive advantages. And unfortunately, Detroit has flunked the trade policy challenge, too.

In the 1980s, the United States imposed import quotas in part aimed at forcing foreign automotive companies to produce in America. But because no overall competitiveness strategy accompanied these barriers, they handed the Europeans and Asians not only new access to U.S. markets, but bargain-basement labor and health-cost structures and zero retirement obligations -- magnifying the advantages created by one-way trade. State governments added to market distortions by competing for foreign-owned assembly plants with substantial incentives largely unavailable to U.S. manufacturers.

-snip-

Only with an emergency surcharge on imports can Detroit address its internal problems and Washington address unfair foreign automotive competition. Strong medicine, to be sure. But without it, Ford, GM, Delphi and others will keep speeding down the road to receivership, dragging a host of related industries with them, and destroying the middle-class lives of too many hard-working Americans and retirees

[Rennes Templar]

"Although Japanese, German, and Korean automotive companies sell freely to the U.S. market, their own home markets have been tightly protected."

Time for Americans to start buying American.

[pgkdan]

Although Japanese, German, and Korean automotive companies sell freely to the U.S. market, their own home markets have been tightly

Ford lost 1 billion USD last year in their North American Market but overall posted a 2 billion USD profit. How is that possible if their unfairly squeezed out of foreign markets?

[Spktyr]

It's not just price that makes people buy cars, you know.

It's quality, longevity, and design that also sell cars, and Detroit lost all three years ago.

Also, it should be noticed that GM Europe and Ford Europe are very, very successful. So much for "protected" home markets.

I'll buy a new American car when I can get a car that's at least as good as the prospective competition, complete with the dealership experience that doesn't remind me of Leisure Suit Larry.

[kinghorse]

Hint: Like Andy Rooney said, less time on stupid new names and more time on R&D and QC. The Buick (insert snappy stupid name here) is still a crappy Buick.

[CondorFlight]

Detroit deserves it. The auto companies are dinosaurs--with gigantic bodies and tiny brains.

Come out with a car with good fuel economy (or one that runs on something other than gas) and they'll rule the world.

Stick with making SUVs (because that's where the profit has been in the last five years) and they'll be extinct and wonder why it happened.

[Spktyr]

Exactly so. Another case in point - the new Impala SS. The AC compressor shuts off at idle by design to save fuel. That's not going to work real well in Texas summers.

It also has, get this, ZERO front seat cupholders. That's unacceptable for a $30K car in this day and age.

[IronManBike]

"Time for Americans to start buying American."

Time to get Ford and Gm out from under the yoke of the mafia--whoops, unions.

[mlc9852]

A longer warranty would also be nice. If they really believe in the quality of their vehicles, it shouldn't be a problem.

[The_Victor]

Time for Americans to start buying American.

Time for American to buy the best product for the best price. This whole protectionist argument was proven false in the 1970's when the Japanese broke into the American market. The end result was American auto manufacturers produce a better car at a competitive price. The competition was good for consumers and ultimately good for the automakers.

BTW both of my autos are Chevys.

[Rennes Templar]

"It's quality, longevity, and design that also sell cars, and Detroit lost all three years ago."

They did lose them, but my experience is that they are competeitive again in those areas.

[MineralMan]

I don't know. I tried a fast shift once in a 1960 Falcon. Busted a gear in the tranny. I don't know why I bothered, really, though.

[surely_you_jest]

I'll buy a new American car when I can get a car that's at least as good as the prospective competition, complete with the dealership experience that doesn't remind me of Leisure Suit Larry.

Ditto.

[i.l.e.]

Only with an emergency surcharge on imports

A lot of foreign cars are made in America.

[Rennes Templar]

A 1960 Falcon? We'd take the engines out and turn them into go-karts.

[Spktyr]

People care less about fuel economy than they do about things like the wheels falling off (Ford Focus) or the engine knocking itself to pieces (GM Vortecs). GM (and to a lesser degree, Ford) has a long, long, long way to go before they can shake the ghosts of their prior pathetic product.

Chrysler's figured it out. Build cars that people *want* to buy. Chrysler's 300 has been so well received in the US and Europe that they're opening a new plant in Europe just to make them - since the US plant can't make enough of them. Ford's starting to figure that out with the Mustang and the Fusion-class cars.

GM's solution? Put a GM badge on EVERY car they make, so you know it's from GM and you'll get sucked into being a "brand synergy" buyer. The last corporation to try that was British Leyland and that worked out well for them - well, no, it didn't.

Anyway, as the new posterchild for the "brand synergy" idiocy, I propose that GM change it's logo:

Hey, it worked for the last company that tried "brand synergy"... er, well, no, it ended up symbolizing their flushing themselves down the toiled, but it still is apt and accurate for GM.

[RadioAstronomer]

BTW both of my autos are Chevys.

So is mine. :-)

[A. Pole]

unless business-as-usual in U.S. trade policy ends, too, and Washington imposes sweeping emergency tariffs on imports of manufactured goods, the American-owned automotive industry will soon disappear

See my tagline

[goldstategop]

If Detroit starts making cars Americans want to buy, they will buy but they're not going to buy junk out of a misplaced sense of patriotic obligation.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[mewzilla]

Time for Americans to start buying American.

I'm not paying an average of an extra $1500 for the dubious privilege of buying an American car.

[Spktyr]

Yup. It'll end up screwing GM, Ford and Chrysler since most of their product is made in Canada or Mexico.

Most "foreign" cars, especially the Asian ones, are made in the US out of more US parts than even the Ford F-trucks!

[MineralMan]

"A 1960 Falcon? We'd take the engines out and turn them into go-karts.

"

When you're 16, you can't be all that choosy. 0-60 in 15 minutes.

[Spktyr]

I disagree. Chrysler seems to have their lineup well in hand, but GM just doesn't have a clue and Ford's still got some problems left, most notably in the areas of suspension and transmission.

Also, Elena Ford needs to be cut out of the hierarchy. Bad.

[Rennes Templar]

Always had and have Fords, always had quality driving experiences.

[maxter]

GM service was poor (I'm being nice here) when they used bad paint for a time. They knew it. Our truck we bought new had so much paint flecked off of it, we were forced to repaint it. We contacted GM who had no interest in paying even part of the fix. We were past the warranty. We paid $900 for a complete repaint job and decided that day never to buy a GM auto again and we have kept that promise. Their problem now is not our problem. The phrase "turn about is fair play" comes to mind. Sorry.

[Doctor Stochastic]

Ford lost 1 billion USD last year in their North American Market but overall posted a 2 billion USD profit. How is that possible if their unfairly squeezed out of foreign markets?

Journalistic license.

[lmailbvmbipfwedu]

They've had their chance. After the $75 "free" oil changes, cars that normally burn a qt of oil in 1,500, and no choice in the equipment options; I don't want power steering, air conditioners, power windows, power seats, automatic transmissions, air bags, or any other member of a long list of go slowers. I checked out an MX-5 the other day, what a joke. No thank you............Can you say "after market", and if I have to go to that market after spending $30,000, never mind..........

[Pessimist]

"Chrysler's 300 has been so well received in the US and Europe.."

BTW, The Chrysler 300s are actually imports. They're all made in Brampton Ontario.

[L98Fiero]

"Time for American to buy the best product for the best price. This whole protectionist argument was proven false in the 1970's when the Japanese broke into the American market. The end result was American auto manufacturers produce a better car at a competitive price. The competition was good for consumers and ultimately good for the automakers.

BTW both of my autos are Chevys."

Ditto, and my 3 are all GM. I just recently bought two of them and it was, for what I wanted, the best deal for the money. Even though I am more than satisfied with my purchases, some tell me I made a mistake for buying GM. Well, isn't customer satisfation the whole point?

[KarlInOhio]

Time for Americans to start buying American.

Is my Honda built 70 miles from my house out of 85% US/Canadian parts American enough? Or do I have to send my money to Detroit and from there to the UAW and the DNC? After spending many times more on repairs on my Saturn than I did on my previous Mazda, GM had too high of hill to climb to convince me to come back. Maybe in about ten years when I buy my next car they'll have improved quality enough to get my attention.

By the way, how did the American car companies get US and Canada on the same line of the part source on the sticker? Canada is as foreign of country as Japan no matter what GM and Ford say.

[Southack]

"Time for Americans to start buying American."

If the unions only support Democrats, then they can hardly be surprised if Republicans purchase non-union-made autos.

[longtermmemmory]

The problem is the american cars do not have the same creature comforts for the same price.

I saw the "new" lincoln towncar and it was essentially the same as the 1970's save for two measly cup holders.

Want to save american autos? BLANKET raise all national highway speed limits to 90, bring back the muscle car (REAL muscle car not the neutered GTO joke that failed) and put some SERIOUS comforts.

The problem is that imports put 30 creature comforts in their cars fro X dollars and the big two put THREE and call it a deeeelux package. Detroit marketing is THAT stupid.

[subterfuge]

"Save U.S. autos."

Again?

Doesn't this happen every couple of decades or so?

[William Terrell]

If you were able to look into the future and see a devastated economic infrastructure and a suborned American society therefrom, would you will willing to pay that $1500 now?

I know you don't beleive it will come to pass, but if you did see that result, would you?

[Rennes Templar]

Well my sister had a VW Rabbit where the "rack and pinion" steering lost it's rack and almost killed her. I'd rather deal with paint.

[L98Fiero]

"Always had and have Fords, always had quality driving experiences."

Traded my '99 Ranger recently. It had 120,000 on it and ran like the day I bought it new. That hydro-planing issue, though. After I wound up facing oncoming traffic TWICE, I decided not to press my luck and trade for a car.

[mewzilla]

The Big Three's legacy costs are not my problem. And if we enabled the Big Three by buying their cars and paying through the nose for them, there wouldn't be any incentive for them to fix their problem, would there? And I'd like to see you tell some strapped-for-cash family that they should just cough up the extra four figures. Bet you don't like Wal-Mart, either.

[Southack]

U.S. Unions In Push To Help Democrats Win Congress

[Spktyr]

Actually, the GTO they were selling has a 6L engine and is almost as fast as the Vette. It was no slouch. It was an excellent car. I would have bought one, except the sleazy dealerships didn't listen and kept trying to screw me.

However, it was poorly marketed.

That said, the Chrysler/Jeep dealerships I buy parts for my Grand Wagoneer at have been nothing but wonderful in terms of customer service - but then they're German now, and that's to be expected, right? :P

GM lost a sale when their dealerships tried to screw me. I'm waiting for the Dodge Challenger now, and in the interim, I'm going to buy a pre-owned Jaguar XJR.

[Rennes Templar]

Well it burns me that we let the foreign market in here for free and they charge us to death. I don't want to buy into that system. I'll make a couple more monthly payments to support Uncle Sam.

[null and void]

That's wayyyyyy out of context.

In context Carly said that technology would become so pervasive and easy that we would no longer see it.

When was the last time you noticed how well an elevator worked or even particularly noted that you used one?

[mewzilla]

You're not supporting Uncle Sam. You're supporting the UAW.

[Spktyr]

Um, they're not here "free." They pay the same or more taxes than Ford and GM.

Another example that you might not want to note is that European protectionists are throwing up much the same arguments about Ford Europe and GM Europe there. What you may not know is that the products they offer over there do not resemble the products they sell here in the least. They are of much higher quality, offer more options, and don't drive like drunken land yachts.

[Rennes Templar]

Then what is the author referring to here:

"Although Japanese, German, and Korean automotive companies sell freely to the U.S. market, their own home markets have been tightly protected."

[steve1848]

>>Ford lost 1 billion USD last year in their North American Market but overall posted a 2 billion USD profit. How is that possible if their unfairly squeezed out of foreign markets?

>Journalistic license.

More accurately because the company lost $1B USD on North American auto operations, lost $1B on other auto operations around the world, and made $4B USD profit in the financing arm of the company, Ford Credit. The $4B profit from financing wouldn't exist if the company wasn't making cars, as GMAC and others wouldn't exactly throw open the door to Ford Credit financing thier sales. So, apportion the profits and losses however you wish in the realm of accounting number juggling.

As far as the basic point about unfair competition overseas, these numbers don't show evidence for or against the point.

[catpuppy]

I had a similar experience with a Ford Ranger. When it was time to sell, the same vintage and mileage Japanese trucks that had cost less when new now looked better, had less mechanical problems, and brought back more in trade or sale.

It will be a long time before GM/Ford match Japanese car/truck reputation for maintaining value.

[reagan_fanatic]

That hydro-planing issue, though. After I wound up facing oncoming traffic TWICE, I decided not to press my luck and trade for a car.

I've had three Rangers (I drive one as a work car now) but I've never experienced hydroplaning yet! Didn't know they were known for that.

Btw, the Ranger has been one of the best vehicles I've ever owned. On all three, I've put on at least 150k miles each and had very few problems with any of them.

[brianl703]

I suspect that the AC compressor control is part of an automtic climate control that will turn the AC compressor back on when the interior temperature starts to rise.

Most car AC units continue to blow cold air for a good 30 seconds or more after the compressor has been turned off.

In fact, home AC units of 10 SEER (Seasonal Energy Efficiency Ratio) or greater keep the fan on for 30 seconds to a minute after the compressor shuts off, to gain additional efficiency..even in Texas summers.

[brianl703]

NAFTA is how they got US and Canada listed on the same line.

[pgkdan]

Chrysler's figured it out. Build cars that people *want* to buy. Chrysler's 300 has been so well received in the US and Europe that they're opening a new plant in Europe just to make them - since the US plant can't make enough of them. Ford's starting to figure that out with the Mustang and the Fusion-class cars.

My wife and I are getting ready to trade her 2002 Chrysler Concorde, which we've been very happy with, for a new Chrysler 300.

[NonValueAdded]

Is that the south-of-the-equator logo?