Saturday, December 23, 2006

Congressional hubris and Detroit's slide

From the WashPost: “Toyota expects to be #1 automaker next year

Toyota said yesterday that it was on track to become the world's largest automaker next year, dethroning General Motors and underlining how far auto manufacturing has fallen from its once-pivotal place in America's economy and politics.

The Japanese automaker's potential dominance will sharpen the spotlight on the industry's problems when Congress reconvenes in January. Members from Michigan, led by Rep. John D. Dingell, have pledged to use Democratic control of Congress to help U.S. automakers.

"If Toyota's worldwide production surpasses General Motors', it will simply provide further evidence of the need for the U.S. government to pursue policies that maintain and strengthen the U.S. industrial base," Dingell said yesterday.
Wow. Just wow. So Congress is going to – by fiat – make American cars stop sucking? It seems much more likely that they’ll simply ratchet up the tariffs on automobiles that Americans do want to drive. Meanwhile, the American auto makers will continue their slow spiral down until they reform their bloated union contracts forged in the fifties and start making quality products.

3 comments:

Eric said...

I didn't mention it but my folks purchased a Chrysler Fifth Avenue that was a total lemon. They tried everything to get it straightened out. Eventually, my father sent a person-to-person telegram to Lee Iacocca that went unanswered.

My old man said: NEVER buy an American car. And I love my Subaru.

Anonymous said...

Toyota and Texas - a powerful combination

Toyota is proud to build a new manufacturing plant in San Antonio, Texas. This plant, representing an $850 million investment, will manufacture our best-selling pickup truck, the super tough, Toyota Tundra. Toyota is committed to expanding our manufacturing operations here, and we're thrilled to add San Antonio to the worldwide family of communities where quality Toyota products are built using many U.S. parts.

The first Tundra rolled off the line this November.

Anonymous said...

The Big 3 US auto manufacturers are finished. The have ceased to be car manufacturers, instead devolving into healthcare providers for retirees. All their major supplers are bankrupt, it is only a matter of time before they follow suit.