Detroit Three Worried That Obama's Plan To Level Playing Field With Japan Will Render Them Uncompetitive

"Render" the Detroit 3 non-competitive? In light of the recent multi-billion dollar bailouts, my understanding is the Detroit 3 -- with the arguable exception of Ford -- have ALREADY proven themselves to be not competitive. They've proven they can't survive without massive taxpayer funding in current conditions, which have protectionist measures to help them be more viable.

Many readers on this list might be too young to remember how this same cry has happened over and over during the past decades. In the 1970s, when an "energy crisis" hit the US (a made-in-the-Middle-East deliberate reduction in oil exports to the US in retaliation for US government meddling there), it motivated many Americans to switch to smaller, fuel-efficient cars. "No fair! We make big gas guzzlers. We need protection." In the years that followed, Japanese cars were selling like hotcakes in America. "No fair! They have cheap labor. We need protection." In the years that followed, Asian labor rates jumped, but Americans still liked Asian cars. "No fair! The have the weak Yen in their favor. We need protection." In the years that followed, when the Yen strengthened, "No fair! They have robots! We need protection."

It's always something! US automakers always have a reason to cry foul, and assert that they need protection from "unfair" foreigners. Those damned foreigner make more popular economy cars (e.g., Kia and Hyundai), more popular middle-class people movers (e.g., Toyota), more popular luxury cars (e.g., MB, BMW, Lexus, Audi). And take a look at where that attitude has got us? Multiple multi-billion dollar bailouts, and we're still in the same boat, with the Detroit 3 crying "No fair!" at anybody who kicks their butts.

Time to pull up your socks, boys, or throw in the towel and get out of making cars! Either that, or you can always do what you did over the past several decades: Instead of focusing your efforts on becoming more competitive, throw your energy and money behind lobbyists to influence the Feds to make it more difficult for your competition to compete against you on your home turf.

Meh.

I have a hard time evaluating what is in this trade deal since it is classified. From what leaks there have been it all seems a bit bizarre to me with the revolution boards etc... able to force US laws to change or potentially taxpayers footing some wrong a company feels like it has incurred due to our environmental or health and safety laws. If it is such a great deal make it public, no need for "fast track"... let's hear about it, get the debates rolling and if thisis such a great treaty then it will stand on its merits. I do agree that many countries subsidize various industries and the US or any country has a right to impose tariffs to negate the impacts. Also the management really needs to get their salaries in line with the rest of the worlds and they need to work with the unions to reform how they operate as well to be a partner and stop the adversarial relationship. Japan and Germany do quite well in this area to the car companies benefit. It would be great to see that happen since a well paid and engaged workforce is one of the most valuable asset any company has.

I agree with you Steve. The only way to adapt is to face the competition squarely. It's not like Toyota and Honda haven't had their fair share of challenges anyway; they aren't the challenge they once were.

I have no idea what's so painful or so good about this deal. However, as a general principle, artificial barriers should never be erected for the long-term so the fundamental principle makes sense.

I agree with TheSteve...American automakers rendered themselves uncompetitive decades ago...I lived through that era of the big three 'crying foul' all those years. The only way they may overcome their horrible reputation is when those of us from that generation dies off...if they can survive that long. Right now they are barely hanging on with their pickups and resurrected pony cars.

All of our free trade deals work against our own companies. The Koreans still have duties on our cars while we've taken them all off of their cars.

Let China create trade deals. They don't make FTA to benefit anyone but themselves unlike our stupid leaders. The little Asian countries won't trade with China if it only benefits China. Eventually, China will close its markets anyway once their chose champions have learned everything from us.

Obama is literally the worst President ever and that is a big accomplishment given how bad Carter was. The sooner the cultural-token experiment leaves office the better.