billddrummer

Will the U.S. Fight the German Car Invasion?

To oilcan,

Didn't Michael Douglas say that in "Wall Street"?

But aside from that, MB may have lost its luster after absorbing, then disposing of, Chrysler. Several billion dollars were lost which could have been used to improve quality and maintain engineering prowess.

Come to think of it, wasn't that the original purpose of the initial loan money the US government allocated to the auto industry? To provide funds for new product R & D to improve fuel economy?

Let's not look at the past, when the car makers used their own money for R & D. To suggest a loan for R & D to the GM of 1955 would have been scoffed at.

But when competition gets more intense, it seems that these companies run to the government for protection. Now, I'm not saying that there isn't government assistance in other countries for its capital-intensive industries. But the idea of government 'participating' (meddling) in the capital budget plans of GM and Ford suggests that the companies themselves aren't up to the task.

As Americans, we expect self-reliance from industries as well as individuals. The state of the US auto industry has humbled the country, and by extension, its people.

And far from shying away from competition, we should be welcoming it. Competition makes everyone better. Having the US government place its thumb on the scale makes it harder for other nations to compete. But in the process, they will make the necessary adjustments to become more competitive as time goes on.

It looks less and less likely that the US industries insulated by the government will make the same progress.

I for one welcome additional entrants into the auto manufacturing marketplace. Excess capacity aside, those companies that make cars people want to buy will survive. Those companies that don't, won't.

I tend to think BMW and VW will survive. They are the most profitable auto companies in the world, and make some of the best products, with worldwide appeal.

Bring on the Germans!