True Freedom for the USA!

Monday, November 17, 2008

Bail out the US auto industry?


Absolutely not! Let 'em fall apart and re-build into something that works. The big three are such pathetic companies that no amount of money thrown at them will fix them. No amount! Might as well throw those billions of bail-out money on a bonfire! The best thing the government could do is relax any unnecessary regulations that are holding the industry back and therefore making it uncompetitive with Japan.

In addition to government regulations that hold back the auto and other US industries, there are three other major reasons why these companies are deathly ill and can't be saved:

  1. Bureaucracy:
    These companies are badly afflicted with the disease of bureaucracy. Many big companies are, as the more intelligent founders sell the company off to shareholders who often are not as smart, don't care quite as much about the company and don't have the same focused control. Being big and old, the big three have an especially bad case of this organizational disease.

  2. Bad reputation for gas-guzzlers:
    The sting of high gas prices, now the bad economy is making Americans rethink their orgy of gasoline hogging. How is it that gas mileage in US-made autos seems to have gotten worse since the 80's, not better?!? And even Japan has somewhat abandoned the great niche they had. What happened to the "rice burner" cars and pickups Japan churned out in the late 70's and 80's? These vehicles were simpler in design and got great gas mileage. Something tells me government regulation dealt them a blow, in addition to consumer demand, i.e. Americans insanely obsessed with burning gas just to show off for friends.

  3. Unions:
    Saving the best for last? US automakers have allowed themselves to become fully diseased by the unions. This dramatically increases costs, complicates operations and business decisions. If the government has to meddle in the industry to save that part of the economy, one of the most effective things they could do is outlaw unions in the auto industry. Of course it won't happen, and the union will continue to bite the hand that feeds them,until they bankrupt and destroy the company they work for, as they have countless others.


I don't believe the automakers are salvageable as-is. They need such a radical overhaul and, as usual, the government has no clue how to really fix the problem (especially under Democrat rule), but government may very well be part of the problem.

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