A dirty little secret: General Motors and Ford already make popular, high-quality, high-mileage automobiles. The trouble is, because of regulatory differences between the United States and the European Union, they’re sold only in Europe. CHRISTIAN EDSTROM in the NYTs times thinks this can be resolved. One thing that sticks in my craw is the standard for seat belts. In Europe it is assumed people wear them in the US, not so. In Canada this is more than aggravating. Our cars meet US standards and air bags do as much damage as good.
I believe the green scare will pass, not that global warning isn’t real just that the scare is a fad. Gas prices should remain stable so the whole mythology behind the shift away from SUVs and mini-vans being unaffordable as gas hits five hundred dollars is a crock. The US. will still have the lowest gas prices in the developed world. There is now a strong import market in SUVs and pickups driven by the belief in a virile mythology accounting for the ratonal of urbanites and suburbanites who have never use the vehicle for what it was designed for. Ford is a leader in this market and although they may not compete in selling other types of car they can scale back and focus on what they do best.
Obama’s team is looking towards a long term solution to the crisis in the auto industry and if they bail them out they will want to see the money is used wisely and will probably appoint a Czar. No one wants to mention the “N” word for government control of company even in countries where social democracy is a way of life has made things worse. I believe in bridge loans and if once the companies are fluid again and no longer find themselves facing bankruptcy, let them go. I believe GM and Chrysler’s management gave up a long time ago and are just looking for a soft spot to land. Ford will survive. The recession will make this hard but they will come out at the end of the tunnel. I am a social democrat who believes the economy should be controlled, but in a nation of freewheeling capitalism qausi-nationalization is a recipe for disaster. I would have more sympathy for the unions if they made the drastic changes needed to turn the ship around but all they do now is complain about all the money going to the financial sector, which is a specious argument at best.
photo from harry_nl
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