The U.S. Auto Industry

There has been much discussion about “saving” the U.S. auto industry, loaning GM and Chrysler billions on top of billions to help them survive. Why? Why do we need to continue pumping billions into an industry that clearly is unable to compete in the modern economy? And who decreed that Chrysler, GM and Ford must exist for the health of the U.S. economy? Take the emotion out of the argument, take away the fear and let’s look at it in the cold light of day.

The U.S. auto industry, as currently configured, is a drain on the U.S. It requires billions of dollars from the U.S. taxpayer every decade or so, which we never see a return on. During the present economic crisis, the U.S. auto industry continues to seek billions of dollars, and when asked for plans on how to restructure and become more efficient and productive, they present plans that depend on U.S. tax payer bailouts. The U.S. auto industry is a drain on the U.S. budget and the economy. They lack the vision, imagination and creativity to adapt to the changing world. Their leadership, frankly, sucks, and is incapable of leading the industry out of the storm to safe shores.

In a truly capitalist economy, we would let these companies go under because they are unable to compete. We cannot instill policies like the old Soviet Union, where inefficient and non competitive companies are allowed to continue operating with government assistance.

The U.S. auto industry as currently configured is holding us back in many areas, such as producing efficient, green vehicles. I recommend that we let Ford, Chrysler and GM go under. Let them file for bankruptcy, restructure and if they can, come back more lean and better focused. In the meantime, take the billions of dollars that would otherwise go to the big three, and give it to the smaller companies in the U.S. that are trying to develop more fuel efficient cars. Let help these companies take the place of the big three U.S. automakers.

These smaller companies are more efficient and better focused. By aiding them we can start down the path to lessening dependence on foreign oil much faster. We can also ensure a vibrant and robust U.S. auto industry by helping these companies rise to prominence. Who says that the face of the future U.S. auto industry must be Ford, GM and Chrysler? Why shouldn’t it be a different face?