Is The Government Killing The Auto Industry?

But to blame the feds on this is a bit silly.

The automakers put themselves in this situation by being extremely short sighted. I know they like to blame it on the public not buying good gas mileage cars so they sold them SUVs.

But you know what?

Toyota and Honda do quite well at making a quality product that get good mileage and they are selling. So why were they successful and the big three not?

Basically shortsighted planning.

I'd rather see hundreds of millions of dollars go into new vehicle development than into the private bank accounts of upper management, or to pay for $100/hour factory workers. This may sound like a lot of money, but to the auto industry, a million dollars doesn't go to far.

Regulation is necessary. Without it, progress either grinds to a halt or the consumer gets crushed. Show me an unregulated market and I will show you piracy, thievery, and chaos.

crazylarry -- if you don't like to live where a government manages complex issues that no private entity can handle, why not find a small Pacific island where you can be king?

The invisible hand of the market is not so altruistic or even benign as free marketers would have you believe. For every Tucker out tehre putting out innovative products to advance safety, there are ten more who would just as soon have no bumpers, unlimited power, no airbags. Basically every car could be a NASCAR if we left it to the mfrs to decide. They dont care that the conventional wisdom seems to show an interest in fuel economy, emissions or safety. The mfrs know what they can make the most profit on, and profit doesnt come from being the most innovative. How profitable is the Prius?

Govt regulations forced automakers to develop cars that dont just benefit the bottom line. Cars that kill less, pollute less, waste less. Yeah a 57 Chevy is beautiful. But I will take strong bumpers, shatterproof glass, padded dashes, seatbelts, airbags, zero emissions and 55 mpg above that beauty. And most of what we take for granted in safety, fuel economy and emissions has been regulated into existence by govts. And not just in the US. You think if Europe hadnt enacted stringent CO2 laws while simultaneously trying to clean up air quality that we would have ever heard of Bluetec?

The only real reason people get upset about govt regs is because they dont want to have any personal sacrifice for the greater (or even their own) good.

Have you seen what the air looks like in an average European city vs. the average US one? On a windless summer day Rome makes LA look good.

Did you get the news about Mercedes not bringing their Bluetec E-Class to California? Did you ever stop to wonder why they may choose to ignore the biggest market in the US? Could it be the inability to meet emissions standards?

"The invisible hand of the market is not so altruistic or even benign as free marketers would have you believe."
The "hand of the free market" is the hand of the consumer and if you think that all consumers are too dumb to make the right choice for themselves and subsequently need some government illuminati to make all the right choices for them, then I have the perfect country for you, North Korea!!!

"... has been regulated into existence by govts" ... maybe they can also enact some sort of regulation that automatically makes all of us rich and happy, makes those like you automatically grow a brain and allows us all to live happily ever after under the government's watchful eye.

The Land of the Free dies a little bit with each gullible socialist idiot like you!

With global warming and all the natural disasters the goverment murt step in! There are already many efficient sporty cars available now. Check out the new BMW 1 series 2008 45mpg US and 200HP! Diesel too.

The problem is that politicians generally lack expertise in just about anything technical or scientific and too many of their advisors are just brown-nosers who put the advancement of their miserable careers ahead of the public good.

EnnNorak well said! Are you refering to BC'S so called fast ferries? A politician desighned the ferry and fired the engeneer because the engeneer told him that putting a jet drive would be slower and less efficient! How dumb! That is how politics work unfortunatly.

The dang government controls everything in our lives,so this does not surprise me at all.They call this the land of the free,but could I tell some government work like a Judge,cop,or the president what I think of them without being arrest,I think not,talk about a violation of the first amendment!!

Oh woe is me that the poor Americans can't make cars as well as those clever Asians, or Germans, or whoever. C'mon guys, does anyone other than Conspiracy Theorists blame the government for the Big Three doing poorly?

This affects all the auto industry,not just domestic cars.