More U.S. Auto Maker Frenzy

Okay first off, the name of the group referenced in this article (the Level Field Institute) kills me. There’s no such thing as a “level playing field” in a free market. Businesses that are good at serving their customers will be successful, while those that aren’t will fail. “Leveling the field” usually means hindering a successful business for the benefit of one (or a group) that is less competent. Hobbling the fastest runners so the slower ones have a chance to win hardly results in a moral contest.

The group’s central argument is the fact that U.S. auto manufacturers employ more workers that foreign auto makers.

"The truth is, U.S. automakers still employ eight out of every 10 autoworkers — four times more than all the automakers from Japan, Korea and Europe combined."

…to which I say, “so what?” Lots of businesses employ more workers than lots of other businesses. The comparison is silly, especially since domestic auto makers are talking about more plant closings in the near future. Are they suggesting that the foreign auto makers’ plants in the U.S. should be shut down and their workers divvied up between Ford, GM, and Chrysler plants?

"I'm surprised that with the Big Three meeting with President Bush next week to talk about their survival, few people seem to care," [Jim] Doyle said. "I don't think people appreciate the difference in the scale and quality of the jobs at stake..."

No, of course they don’t...nor should they. Consumers care about the quality and price of the vehicles being produced. They will support the jobs they value most highly by spending their money…and condemn those of lesser value by not spending it. The fact that U.S. auto manufacturers are unable to compete in any market, domestic or global, means that consumers have chosen them for extinction unless they get their shit together. I’ve said it before...the giant, uncompetitive American auto makers must be allowed to fail, so that the workers they employ can find jobs in areas more highly valued by consumers.

There is a bright spot in the article, though…

"Detroit's ability to shape important government policies, such as fuel-economy and air-pollution rules, will be much diminished, and the likelihood of federal aid for research and development will be reduced," Patel wrote in a recent research note.

We can only hope.