Home OP-ED How to Get Americans to Buy American Cars

How to Get Americans to Buy American Cars

228
0
SHARE


Economic crisis be damned. I need a new car.

After scouring every consumer report known to man, and an equal amount of handwringing, I decided do the patriotic thing — buy American.

[img]232|left|||no_popup[/img]

Look, I’ve heard it all before; Detroit makes crappy cars. They’re unreliable, gas guzzling, clunky … blah, blah blah. Still, I wanted to give a go.

After much soul-searching, I settled on a G.M. Vauxhall. I particularly liked the lines of the Antara; sporty yet manly, with great gas mileage. It also comes in a hybrid model.

My second choice — just in case the Vauxhall dealer wasn’t in the mood to haggle — was the Holden Omega Sportwagon. Perfect for a rugged urban warrior like me, but easy on the wallet.

So I went off in search of my dream car.



Speaking of Patriotism

Just one problem. None of these American cars are made in America.

Despite their troubles at home, the American automakers are hitting home runs in the overseas markets. Cars made by G.M., and not Mercedes or Volkswagen, are the top sellers in Europe. In Russia and other Eastern European countries, mid-priced Chevys have run VW’s off the road.

G.M. and Ford, and to a lesser extent Chrysler, build cars all over the world that consumers other than Americans want to buy. From plants in China and Australia to Argentina, South Africa and Brazil, American automakers are turning a profit.

­
How can a bunch of bumblers, who can’t seem to make products other than trucks and SUVs that Americans really want to buy, be such heroes abroad?



The Succinct Formula

It’s not really that puzzling; they’ve followed the money.

Most of these plants have been built through incentives, loans or co-investments by their foreign hosts. As a result, nearly all of their plants outside of the United States are high-tech, modern and state-of-the-art.

Their foreign facilities are sleek, flexible and configured to quickly adjust and retool to make vehicles that fit the marketplace. In sharp contrast, their domestic plants are cumbersome, and they have been unable to adapt to the rapidly changing face of the American auto consumer.

G.M.’s U.S. revenue has sunk 24 percent in the last three full years, but in the rest of the world, G.M. can boast a 28% increase. Similar overseas numbers have been posted by Ford and even Chrysler.

Color me confused.

Make the Loan Conditional

If American automakers are doing such boffo business abroad, then why do the American taxpayers have to bail them out at home? Before we give them one dime, Congress should insist that Detroit first reinvest their foreign profits to modernize and improve their domestic operations.

Or here’s an idea; compel G.M., Ford and Chrysler to raise the money they need to survive by selling off their more profitable foreign subsidiaries.

If the Detroit automakers are unwilling to invest their own money to retool, then neither should we.

As an alternative, the best solution may be to let Toyota or Nissan buy them out. Maybe then America will finally make a car that Americans really want to drive.




John Cohn is a senior partner in the Globe West Financial Group[ based in West Los Angeles. He may be contacted at www.globewestfinancial.com