American Steel . . .



If Toyota and Honda replace Chrysler, Ford and General Motors and Chrysler as the chief automobile companies in America and they use American labor and American steel, how would it hurt America?

The big three U.S. auto makers were back in Washington this week to continue lobbying for a $25 Billion bail out. General Motors Corporation has said that it needs action by the government before the end of the year to forestall a crisis. Analysts say GM could run out of cash by January without help, and Ford Motor Company and Chrysler LLC also need immediate government help.


Does something seem amiss here? With the millions of dollars these companies pay top executives each year, why didn’t they see this coming years ago and make adjustments? And if these wizards could not foresee and diagnose and correct problems known by the American auto buyer years ago, why would anyone expect that they could now correct these same problems with a new infusion of our money? Perhaps it is simply that having seen the $700 Billion recently provided the financial industry, with little and ineffective oversight, they have decided to plead for continuation of America’s corporate socialism and demand a similar windfall?

" . . . a corporation has neither a body to be kicked nor a soul to be damned."

Sir William Blackstone

Before we bail out the big three U.S. auto makers we should consider the productivity of the Japan Automobile Manufacturers Association (JAMA)

          JAMA members and dealers accounted for 424,883 U.S. Jobs in 20007

          JAMA members have made a cumulative $32.7 Billion investment in the U.S. as of 2007

          JAMA members have purchased a record $50 Billion in auto parts from U.S. sources as of March 31, 2008

          63% of the Japanese-brand vehicles that were sold in the U.S. in 2007 were made in North America (i.e. U.S., Canada & Mexico). (Accordingly, 37% of the Japanese-brand vehicles that were sold in the U.S. in 2007 were made outside of North America (i.e. U.S., Canada & Mexico)


We should also consider the message being sent if Congress does vote to bail out the big three U.S. auto makers:

To auto buyers - Go ahead change your motoring habits by purchasing smaller, fuel efficient vehicles. You’ll still pay for costly inefficient vehicles produced in Detroit with your tax dollars. Detroit will still get your money, you just won’t get their cars. 

To start-up auto manufacturers making eco friendly and fuel efficient autos such as TELSA MOTORS , or Zap,, both of California - Good job! You seem to have something going there. To ensure you continue on your road to success we (the Congress) have decided to spark you on with a little competition from your failed friends in Detroit. You may not see the wisdom of this now, but don’t despair, no one does. 

To Honda, Toyota and BMW and other foreign name auto makers who have U.S. factories and their workers who produce autos that Americans actually purchase - We know you produce a good product that sells in America using American labor and supplies. But we have a commitment to historic U.S. companies. And we don’t view your American workers as real Americans; if they were real Americans they would work for real American companies.     

The big three have said they would retool and make better cars; that they want Congress to force them to work together to develop better cars; that their failure would weaken our National Security by elimination of our industrial capability to develop and manufacture military equipment when needed to respond to foreign military threats.  Do they think we don’t know that they have had no involvement with the military for over 50 years and that a separate military- industrial complex has sprung up to equip the U.S. military?  Have they stumbled into the plain in Shinar, made great plans and lost the ability to effectively communicateFootnote?   If they have indeed become addled, why should we invest in their ability to use such windfall for their recovery?


U.S. bankruptcy laws seem the perfect fix for the crisis in Detroit.   But the big three have argued against bankruptcy: no one wants to purchase a car from a bankrupt company! They have agreed that the imposed conditions of bankruptcy without the name might just work – something similar to the Chrysler Corporation Loan Guarantee Act of 1979.

Nothing seems perfect, or workable for that matter. A perfect opportunity for prayer.

/ SS/