How To Destroy The US Auto Industry…

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It is little surprise that the primary products made by US Automakers are larger vehicles such as trucks and SUVs. In fact, the US Automakers make the best trucks in the world. They also offer the largest selection of SUVs.

The temporary spike in oil prices in 2007-2008 led to a huge decline in the sales and popularity of SUVs, and even though trucks are still a necessity for the homeowner and business in America, their sales dropped off dramatically as well. Liberals and pseudo-ecologists made it as stupidly criminal to own an SUV as to own a genuine fur coat.

Note that despite the huge sales decline, no end to global warming has occurred. Laws we pass in the United States do not impact China and India, where pollution laws are nearly non-existant. In fact, despite our efforts, this article shows that pollution from emissions got worse.

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It is evident that the effort to reduce emissions has helped foreign industry vastly more than American Industry. Toyota, Honda, Hyundai and others have taken over the econo-box market. They are well ahead of Ford, GM and Chrysler in the manufacture of small cars. With that large of a lead, it is unlikely American manufacturers could ever catch up. But that is not the American manufacturers’ niche anyway. They offer utility in their vehicles that the econo-box can never hope to afford.

An article from Edmunds states, “When customers do buy, they’re picking smaller cars, crossovers and hybrids. The demand for more fuel-efficient vehicles has been a boon to Japanese automakers such as Toyota Motor Corp. and Honda Motor Co., which rely less heavily on trucks and sport utility vehicles than the Detroit Three.”

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We are certain this is of little surprise to the readers of this article. The big three have been unable to compete in the small car market and the artificial speculative hike on oil and gas prices destroyed demand in their most lucrative markets and led to the collapse in demand for their products and the necessity for a bail-out.

urbantrafficNow, with fuel prices down and billions being spent to keep the American automobile manufacturers afloat, Obama has had a brainstorm. He is passing an order to allow states to impose much stronger regulations with respect to automobile emissions, which inherently favor small cars and the foreign automobile manufacturers.

Obama does not seem to realize how severe a blow that is to America and how foolish an approach it is to our current problems. As demonstrated, our efforts to reduce emissions further does little or nothing to reduce pollution world wide. It is a foolish notion that we in America can fix the world, and this fix everything at once attitude will take the US auto industry to its final resting place.

We are surprised that Obama, on the one hand, can act like he is a friend of the unions in order to get elected, but on the other hand make sincere efforts to wipe out the industry for which many of the union members work. To add to the economic difficulties this will cause, these are among the better paying jobs in America.

Now, with fuel prices down 60% and with the American automakers given a respite and a chance to promote the vehicles they make best, Obama and the Democrats are attempting to put a final nail in their coffin.

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One Response to "How To Destroy The US Auto Industry…"

  1. Rob Smeed   July 26, 2011 at 4:52 am

    There is nothing to stop American car manufacturers from making smaller more fuel efficient vehicles. There is still a huge market for electric cars, and I think that American automobile manufacturers will have a good opportunity to lead the way in this area.

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