Monday, May 04, 2009

More On Government Motors

Govenrment telling automakers how to run their business. Look, I don't think GM cars totally suck (I own a Pontiac Vibe) and I don't think that the Japanese automakers are any better at making a car than Americans are. The problem is one of perception and cost.

First, the perception is that American cars are quality cars. I don't think they are of lesser quality across the board. But I do think American consumers believe that and that is the problem of marketing and response to problems (which for Pontiac is sometimes not good).

Second, is one of cost. The Japanese cars, even those still made in Japan, come in at a competitive price point and that accounts for the cost of importing them. Japanese cars made in this country cost less than their American counterparts, not much less, but again, less on average. You can't argue with the sticker price, it is what it is.

But the idea that the federal government can do something better for American car makers that the American car makers haven't figured out for themselves is absolutly ludicrous. The way to make American car makers more competitive is to get out of their way, let the succeed or fail on their own.

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