Thursday, March 08, 2012
Halftime in Detroit - WSJ.com
Here's an revealing article covering the American auto industry, the government bailout, the whys and wherefores, and what the future may well be...
From a recent Wall Street Journal opinion column:
"These companies are not run by morons. They make small cars profitably overseas and are among the biggest-selling brands in China and Latin America. In the U.S. by contrast, cars are a minority of the top 20 models, while Ford and Chevy pickups are among the top three sellers year after year. But if American consumers don't want to sacrifice horsepower and size for fuel efficiency, Washington won't take no for an answer. The new Obama budget includes a $10,000 tax credit for consumers to buy the green cars that they otherwise wouldn't. Will mandated purchases be next?
The point is that the auto bailout isn't an example of enlightened government revitalizing an industry after a market failure. It is a bailout in the wake of failed government policies and bad management that may keep going and going as Washington does whatever it takes to make sure Detroit keeps doing its political bidding."
