As the American auto industry continues to flounder in its competition with overseas heavyweights such as Honda and Toyota, people are beginning to realize that it isn’t that easy to define an “American” car company anymore.
Sen. Lamar Alexander has backed a measure to outlaw burning of the American flag and supported a move to recognize English as the national language. He also takes what he calls a pro-American stance on issues related to the U.S. auto industry, but his view doesn’t sit well in Detroit.
Alexander believes that for the sake of jobs and economic growth, Detroit’s automakers have no choice but to embrace the forces of globalization. His view, echoed by many of his congressional colleagues, reflects a growing acceptance of the swelling numbers of Japanese, German and Korean autos built and sold in the United States.
Foreign-based automakers employ 101,000 people, according to the Association of International Automobile Manufacturers, a District-based lobbying group for the overseas automakers. In the next three years, these manufacturers will invest $9 billion in new factories, adding 9,000 more jobs.
This growth helps explain why scarcely a murmur of discontent has been raised — outside of Michigan — over a potential alliance between General Motors Corp. and two foreign automakers, Nissan Motor Co. of Japan and Renault SA of France. It also provides insight into why Congress has resisted pleas from Detroit’s Big Three to turn their high labor and health-care costs into a national priority.
“There’s a new definition of the American auto industry,” said Alexander, a Republican from Tennessee. “Twenty-five years ago, it was the Big Three companies in Detroit. Now the definition is any company that makes a substantial number of cars and trucks in the U.S. and has a big payroll here, pays big taxes here and buys supplies here.”
Supporters of Detroit’s automakers say the changing view is partly the result of partisan politics, but others say U.S. sentiment has shifted gradually in line with the realities of the global auto market. Today, Chrysler is part of a German company. Nissan is constructing a new North American headquarters in Tennessee, where it already has a car assembly plant. Alabama is home to major manufacturing facilities of Mercedes-Benz, Honda Motor Co. and Hyundai Motor Co. In all, foreign manufacturers operate 16 assembly plants on American soil, with a 17th opening soon, compared with 48 run by U.S. automakers
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