mage67 (mage67) wrote,

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What to do about the US auto industry?

We can't have the US auto industry fail because it would mean a ripple effect that could cost the US over a million jobs here.

We can't just throw money at them either because we tried that earlier in the year. They just burned through the money we gave them and are now asking for more. Giving them money would mean we're delaying the inevitable.

The problem is that the management of the big US automakers claim to have made no mistakes. They blame the economy for their woes. They will continue to pursue failed policies as if they worked.

The US automakers have the attitude that whatever they build, the US consumer will have to buy, regardless if it is what the consumer wants. "What is good for GM is good for the country" is the well known quote that dominates their philosophy. The problem for automakers is that now car buyers can buy cars from elsewhere that will give them what they want. The car industry can no longer afford to ignore the wants and needs of the consumer to the degree that they have.

The solution is to impose strict government oversight to ensure consumers get what they want. We can give them money on the condition that they build cars that address consumer wants.

Of course that will probably never happen and if it did it wouldn't work. The reason is that people have to be picked to decide what consumers want and wants are very subjective. The people that will be picked will either be of the auto industry or people heavily influenced by them because of money and their auto experience. And those people won't change things enough to solve the problem. There will also be bogus claims that to enforce government control stinks of communism.

So the automakers will probably get their money. They will probably burn through it again and then ask for more. This will keep happening until the companies collapse or auto maker management caters to consumer demand.
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