Reviving Our Domestic Automakers

[carman21]

I propose a plan to revive our Domestic Automakers home field advantage as well as give our Automakers a strategic advantage in other markets.

1) Restrict sales of foreign automakers to the sales of American automakers in that nation.

Ex. If Detroit sells 1,000,000 cars in Germany, German automakers can only sell 1,000,000 vehicles in the US.

Since we have the largest auto market of any of the homelands of the major automakers, we will have a major advantage in global sales.

If other nations try to counter our restrictions by lowering the number of vehicles we can sell there, it will just hurt their own automakers here.

This will encourage stubborn markets like Japan to open up to American products to keep their market share in the US. I doubt that they could muster the volume before the damage is done to Japan, Inc. USA

When China and India surpass our market volume we will just have to scale it to equal ours.

2) Increase the number of automakers allowed to sell in the US.

This will give domestic automakers the advantage of being the largest automakers in the US. This will keep US automakers on their toes while allowing their size to protect them from the assault.

I would suggest adding French, Italian, Russian, Indian, and Chinese automakers.

3) Create higher standards for safety, quality, fleet mileage, and emissions for foreign automakers than domestic automakers.

This will keep out low-grade automakers that are just selling cheap junk.

4) Treat the Domestic automakers products that are manufactured outside the United States the same as vehicles made by foreign automakers.

This will ensure that all American cars are made in America. Not Mexico, China, or elsewhere.

5) Ban US Automakers from being bought by foreign companies.

That's pretty self-evident.

I believe that this plan will revive and rejuvenate our ailing domestic automakers.

I realize that this is not Capitalism but, how Japan came to dominate our market is not Capitalism either.

Oh Yeah, sorry if this is not up to normal quality standards, after my long hiatus at school, I'm back at C&G ! I'm glad to see everything is up and running again.

Edited July 2, 2008 by carman21

[gm4life]

Some good ideas others are really silly. Part of America is giving people the choice to buy a Camry (when they should have got an Accord or Malibu) no matter how stupid I think there choice is it is freedom. Yes even the freedom to be stupid. FYI this would never fly in America killing way to many jobs etc. The only thing you could maybe do is add a traiff.

Edited July 2, 2008 by gm4life

[carman21]

I'm not telling anybody to not buy a Camry, I just want to reduce how many people can actually find one at the dealership. Tariffs can't work against a Camry build in Kentucky or California. Besides Tariffs would cause trade wars and that would hurt our already weakened domestic automakers. Reducing actual sales of foreign automobiles whether made here or abroad will reduce our trade deficit as profits will stay here and not in Japan.

The lay-offs at Toyota, Honda, and Nissan plants and dealers will be offset by new hires at GM, Ford, and Chrysler plants and dealers. In fact, the Domestics may just buy Japanese plants to build their vehicles in more modern facilities.

The only reason that Japan, Inc. has impacted our market so badly is that our government has taken every opportunity to smash and bash our domestic automakers while Anti-American liberals are enthralled by the Big 3's(being evil polluting corporations) demise and Anti-Union conservatives are enthralled to see the demise of the UAW. So of course we are where we are today. Thank your government and media. Not to mention, Blue States losing jobs gives Democrats a reason to complain about Bush and win elections and new plants in Red States help Republicans there. Either way, we are screwed.

Believe me, it pains me to go against my free-market and freedom of choice instincts on this one but, we have not been in a free and fair market for 40 years.

[Blake Noble]

I believe one thing that could help not just the domestic automakers, but every automaker, is to be very strict on dealers. Ever stop to think that some of these dealers could be stealing money from the company whose products they sell?

It's a real problem.

[loki]

I got a 2 point plan.... for the government

1. open up trade...get out of WTO nafta cafta, make it totally open. tariff minimally.

2. get out of health care. this will drive prices down and limit how much gm / ford/ chrysler has to deal with it until they renegotiate.

tada!

[CARBIZ]

I don't think protectionism is going to work. Our modern world is far too interconnected. However, the decline of our life as we know it is accelerating. Dell just axed 1,000 jobs here and moved them to the Philipines. Nobody's job is safe. Berkshire has just lost 20% of its market value. Bookings in Vegas are way down. California is in trouble: it appears The Guvernator is having trouble borrowing money.

So for those gloating over GM's troubles, we are all going to hell in the same handbasket. There is some nastiness afoot of the likes we haven't seen since Vietnam, in terms of economic turmoil. Personally, I think a little house cleaning is in order. Actually, a lot of house cleaning. There are too many self-interest groups in charge of all levels of government on both sides of our borders.

November will be very interesting. Whomever gets in will be inheriting one helluva mess.

Of course, China could reach into petty cash and bail the U.S. out.

[loki]

I don't think protectionism is going to work.

Of course, China could reach into petty cash and bail the U.S. out.

agree. on point 1, that's the same idea that we can drill our way to independence.....without nationalizing the industry. supposedly lots of the alaska oil gets shipped to japan, because it's more economical instead of transporting it down here.

we don't want china to bail us out, we have to do that ourselves, other wise we'll be indebted to them forever.

[Guest aatbloke]

Reducing actual sales of foreign automobiles whether made here or abroad will reduce our trade deficit as profits will stay here and not in Japan.

Three points of note:

1. Profit does not equal cash, except occasionally in the very simplest of businesses.

2. It is virtually impossible to extract every last cent of net profit from a US subsidiary company to a Japanese parent.

3. Reducing one's trade deficit is best achieved with building products for export - but you need to a build a product suitable for other markets.

[Satty]

How 'bout building a better car for the money, that seems like it would work better than government intervention.

[loki]

How 'bout building a better car for the money, that seems like it would work better than government intervention.

government has intervened for the past~40 years, at least. at least the way you phrased it makes it sound like it's new... or is never a good idea...

[CMG]

How 'bout building a better car for the money, that seems like it would work better than government intervention.

I'm not sure, Japan has used government intervention, it seems to have worked for them???

:AH-HA_wink:

[CMG]

I don't think protectionism is going to work. Our modern world is far too interconnected.

I agree.

Protectionism AIN'T the answer. That's a "too little, too late" knee jerk response to a problem that goes far beyond just present day automotive sales.