Article With An Interesting Suggestion For The US Automotive Industry - GreenHybrid

Delta Flyer · #1 (**permalink**) 07-29-2005, 06:13 PM

I think the article was in either the Washington Post of the NY Times. I apologize if this sounds like flame-bait.

First glance, it sounds heresy to assert American jobs will be saved if Toyota could buy GM. A closer look and it might seem sensible.

To avoid big tarrifs, Japanese carmakers started building plants in America. State goverments bid to offer tax breaks for new plants. Toyota employs 200,000 Americans - Honda builds more cars in the US after Detroit. Meanwhile, Detroit is offshoring some of their operations to remain competive.

Also consider that Washington's Energy legislation favors harder to sell gas guzzlers over more fuel-efficient cars, setting up Detroit for a harder fall when this fails.

I don't want to see more US jobs lost - let me be clear on that. Some members here in so many words have said GM needs to be like Toyota to survive. Toyota buying at least some GM plants might be good for the American car industry.

I'm left wondering what is really best for American jobs....

AZCivic · #2 (**permalink**) 07-30-2005, 08:50 AM

Do you have a link to the article? I don't see it in your post. Honestly, I think a lot of this could be worked out in less dramatic form if we raised CAFE. Then it's up to the US automakers to figure out if they really can engineer vehicles capable of this or not. The nice thing about CAFE is that it doesn't prevent you from selling gas guzzlers, but there are financial penalties for doing so. In other words, Detroit can still sell the exact same lineup if they really wanted to, but they would have a huge financial incentive to improve, which I feel would ultimately benefit them anyway.

Delta Flyer · #3 (**permalink**) 07-30-2005, 11:35 AM

AZCivic,

My netiquette would have been better if I just Googled until the links were found - sorry.

With no further adieu:

As Toyota Goes....
Related article on Baltimore GM plant

In regards to the first article, I'm a lot more sympathetic with the GM workers than their bosses that mismanaged them into the dire straits they are in now....