In Cars

For those of you who recognized my borrowed title as belonging to the lyrics of Gary Numan's semi-hit "Cars", congrats.

I have been fascinated with cars since my very earliest memories. I dreamed of owning the muscle cars of my youth in the '70's - Burt Reynolds' Trans Am, Steve McQueen's Mustang, and the Challenger from the cult classic "Vanishing Point". I have collected Car and Driver and Road & Track mags for years. Once, I was moments away from purchasing $5000 worth of Snap-On automotive tools and beginning a career as an auto mechanic. My first workplace experiences were in service stations and I did the usual "grease monkey" jobs, oil changes, tire repairs and some minor repairs.

I didn't end up owning my dream cars (and my newest one is out of my reach financially) but it may be a moot point as the company that builds it may not exist as it does now in a very short while. While the facts are that GM, Ford and Chrysler are all in dire financial straits currently (Ford being the possible exception) it seems they will die, not because of their own mistakes, but because of the political baggage that will be attached to any attempt by the US government to bail them out.

The short version of this is that President Obama will (already has) attached caveats to the bailout package offered to the US automakers that will severely limit the ability of the executives to run their companies in an efficient and profitable manner. The insistence on demanding that the US companies meet fuel efficiency targets their competition will not be required to, incorporate new technologies before there is a profitable business case to do so and limit the choices they can make regarding how to use the bailout funds will inevitably result in business failure in any case. These issues have been reported elsewhere and are now public record. The recent resignation of the CEO of GM was the only response he could choose in the face of what the US government was demanding. Had he said "yes" to the bailout as offered he would have been unable to do his job effectively anyway. His choice was the honest one.

In addition the the roadblocks the US government is putting up in front of the automakers the leadership of the UAW and CAW have continued to insist that the cost of labor is not a problem for the US car industry. This is in spite of the fact that the huge disparity between the average wages of their members compared to the average wages of competitors' workers in the US is so great a grade 10 student in a Junior Achievement program could spot it as a HUGE problem.

I am now predicting the bankruptcy is inevitable for the US automakers. Even if deluded leadership is found who will accept the strictures of the bailout package the end result will be failure, albeit delayed failure. The sad truth is that this ultimate result will be more the fault if the US administration and the influence of special interest groups than because of the mistakes the US auto manufacturers have made. I will not blindly defend them. They have made serious errors in judgment over the course of their history and have had to deal with their self-delusional corporate culture, but the truth is that all three US companies had already made major changes and improvements before the economic meltdown took place. The evidence of this is certainly in Ford, which currently is still relatively solvent. Every new model GM has introduced in the last 5 years has been a meritorious design, including the Saturn Aura and Chevrolet Malibu (both of which won "Car of the Year" in the two previous years). Even my beloved Cadillac CTS-V is considered a "world-class" luxury sports sedan capable of competing with anything in its class and price range.

The truth is that if the economic meltdown had not occurred it was becoming more and more likely that the US auto manufacturers would have begun to regain market share, rebuild their reputations and infuse the marketplace with exciting, innovative and worthy products. Ultimately we as consumers would have benefited with more choices of better vehicles at better prices in a more competitive marketplace. That future is all but a lost opportunity now.

Perhaps the US auto manufacturing industry will be able to rise from the ashes of the oncoming inferno that will consume them. There are historical precedences for companies being rebuilt by those who buy them, but this will most likely not be a "made in America" solution. The irony is that while President Obama is likely to flirt with some protectionist policies during his administration (and perhaps already has), in this case he seems content to throw one of his nations oldest and most storied industries to the wolves - even when there is evidence that they could still survive if aided appropriately.

For my part I'll be shopping for a lightly used GM product this spring. I like what I'm driving now, I just am wearing it out. Maybe this will be my last GM purchase. I hope not, but to me the future looks grim.