May I offer a different take on what ruined the auto industry in this country? You may not agree, but at least hear me out.
- The 55 mph speed limit imposed during the Carter administration. Up until this event American cars were recognized worldwide as the car to own if you wanted to travel long distances at high speed. Japanese cars fell apart at American freeway speeds. After the new lower speed limit was imposed, the Japanese cars were better able to compete and lasted longer. It’s too bad too many American consumers equated this increased longevity with an improvement in quality. That came later.
- Detroit’s failure to go metric. That’s pretty much changed now, but back when Detroit had an opportunity to expand foreign markets (except in Japan, but that’s another story) they were still selling products made in the old English measurement system. Since repair shops don’t exist on every corner in other parts of the world a potential customer had to take into consideration how he would fix his car. Since all his tools were metric, why would he buy a car he couldn’t work on?
- Only Detroit has to pay health care costs. This adds several thousand dollars to the cost of each car. Is it any wonder they can’t compete in the market place? The U.S. is the only country in the world saddled with a system that puts the burden for health care on employers. It is ironic that government intervention was partially to blame for creating this mess. During WWII when the government froze wages employers, searching for a way to entice good employees to join up or stay on, began to dangle carrots in front of employees in the form of medical insurance. They couldn’t offer cash, so they offered benefits. It became a hugely popular program, but now we see it collapsing upon itself as it snuffs out the ability of our industries to compete, and punishes those who have lost their jobs or work for companies that don’t offer it.
Since only the second reason was under management control, I’m not sure they can be faulted entirely for the present situation, but neither are they without guilt.
J. Phillip Martin
Marion, Va.
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