Wednesday, November 15, 2006

Auto Pilot

President Bush met with the "big three" in automaking (Ford, GM and DaimlerChrsyler) Tuesday to discuss the poor state of their companies. I know it's standard practice nowadays to ask for federal hand-holding when a company is doing poorly but it's still absurd: a way to discourage innovation and encourage government expansion.

Some of the automakers' problems stem from big government: steel tariffs, coverage regulations on health insurance, union regulations, exchange rate pegging, etc.

Some of their problems come from themselves: little fuel efficiency (Japanese cars often have much better efficiency), high depreciation rate (US cars aren't made to last as long), poor market anticipation, etc.

US automakers should stop trying to steer the government to their side and start trying to get it out of everyone's hair. Maybe that will remind them that it's their job to fix their own troubles.

1 comment:

Tim said...

But if only they'd focus on the costs incurred by government alone, I might be happy. I'm sympathetic to their plight under the steel tarriffs, but then again, why should they get a shelter therefrom? That would only relieve a symptom of the disease - it doesn't cut out the tumor itself.