Quote du (Almost) Jour: Auto Industry Stresses
Over the past year, the domestic auto industry has experienced sharply reduced sales and profitability, large indefinite layoffs, and increased market penetration by imports … The shift in consumer preferences towards smaller, more fuel-efficient passenger cars and light trucks … appears to be permanent, and the industry will spend massive amounts of money to retool to produce the motor vehicles that the public now wants.
To improve the overall future prospects for the domestic motor vehicle manufacturers, a quality and price competitive motor vehicle must be produced … If this is not accomplished, the long term outlook for the industry is bleak.
-- Source: THE U.S. AUTOMOBILE INDUSTRY, 1980. REPORT TO THE PRESIDENT FROM THE SECRETARY OF TRANSPORTATION
It's probably necessary to prevent the domestic US auto industry from careening over the cliff and dragging parts suppliers, dealers, and associated business partners with it. However, how we're going to get this dinosaur of manufacturing to change its ways is beyond me. I'm thinking that Chrysler sells-off Jeep and kills-off the rest. GM sells Buick to the Chinese, Saab to the Swedes, Hummer to the Russians, and then just struggles along until the rest crashes and burns. Who needs a $40K Volt? If Ford can restructure fast enough then they may have a chance to survive. Meanwhile the other US auto industry is hurting but capable and makes quality, efficient cars and trucks that Americans want to buy.
