How Washington Failed The Auto Industry

In September of 1990, when a gallon of gas was $1.16, the Senate took up a measure that would have bumped the average fuel efficiency of new cars to 40 miles per gallon. Faced with heavy opposition from the nation's automakers, however, the measure fell three votes shy of passage. Leading the congressional resistance was Michigan's influential delegation, which stepped in to protect its famously regional industry.

Eighteen years later, the price of gas is flirting with $4 per gallon, the global warming threat is ever-increasing and Detroit's auto industry is hemorrhaging workers. As America's big three automakers -- Ford, Chrysler and General Motors -- struggle to compete with smaller, more fuel efficient imports, a number of environmentalists, watchdog groups and former members of Congress contend that Michigan's lawmakers bear much of the blame for the industry's woes.

"For the last 20 years, the Michigan delegation felt that what was good for the big three was good for Michigan," said Brendan Bell, Washington representative for the Union of Concerned Scientists. "Instead, 20 years of inaction gave the big three the rope to hang themselves with."

Read the whole story here.

Comments

[willo]

No shit. This is only the same thing I have been harping about for the last 40 years. The people running our auto manufacturer's while giving themselve's outrageous salaries have orchestrated the destruction of our domestic auto industry, One can only conclude it was and is intentional. They should be clapped in iron's and stripped of their wealth. What's left of our auto companies should be given over to brilliant, daring people, who will move at all possible speed to design and manufacture the cars that can get the job done as economically as possible.

[ExPatriot70]

Remember they all laughed when the first VW Bug showed up in this country, now who crying in their beer, if they have problems now it is their own fault.

[JoeBlough]

Congress is not to blame. The executives of the auto companies could have taken it upon themselves to make a better, fuel efficient car. They chose the lazy, Republican business plan and it will destroy them. These companies always expect the government to bail them out of their bad descisions.

[WIpatriot]

No single activity between big business and government happens independently. There is no singular cause-and-efffect relationship.

[dadw5boys]

Washington failed them???

If they had spend million on research instead of billion to political pas they could have solved this thing years ago.

I know that one company has a Hydrogen storage tank for cars. I worked on the project and it was shot with a 50 caliber machine gun as a test for leakage. It did not leak.

[calgary]

Actually, the auto industry did quite well for many years with SUVs and pickup trucks. Their problems were that they had not plan B when the SUV bubble burst and their strategy was too keep the bubble going for as long a possible. The $4+ per gallon became the big pin that bursted the bubble because no govenment or country on earth can control the price of oil. It is just poor business planning.

[dadw5boys]

hmm funny you should mention that. Check this out.

http://www.huffingtonpost.com/raymond-j-learsy/the-oil-industry-is-drivi_b_19671.html

[WIpatriot]

dad, Raymond said "...intelligent government management..." so I stopped reading at that point.

[lunyboy]

Agreed, this is why laissez faire economics is a poor idea. Industries that large are have to much inertia and when they can influence legislators, they will.

This is on the industry's shoulders, but the legislators should be taking a longer view of their responsibilities to their constituents.

[KillTheMessenger]

That's nonsensical. The US auto industry simply learned nothing from the events in the 1970s and 1980s And neither did their customers. The party is simply over, AGAIN, and they have nobody but themselves to blame for the hangover.

[WIpatriot]

'xactly, KTM.

[bethinaz]

The auto industry failed itself. Imagine that you need to have the government legislate what you should be doing as just a good business idea. The auto industry should have been making more fuel efficient cars on their own. Now, once again, they are way behind the market. Back in the 70's when everybody scrambled to buy efficient Toyotas & Hondas the big 3 were stunned. Today they seemed to be stunned again. I have no sympathy for the idiot CEO's of this industry who allowed this to happen AGAIN. I will never buy another car (American or foreign made) that does not get at least 40 mpg. I'll keep riding my motorcycle until I find a car I can buy. Thank God I live in a warm state!