If the former Big 3 are going to get our federal bailout dollars, they need to hear the ideas of the people writing them the checks. And I don’t mean the lobbyist-friendly politicians actually making the decisions in Washington. I mean people like you and I… those of us who work every day and foot the bill for these bail out plans.
This is my third idea for fixing the auto industry. (idea #1 | idea #2)
If Ford, GM, and Chrysler want to survive for the next 100 years, they need to stop perpetrating the lie that they are Made in America.
Living in Michigan and driving a Toyota Camry for 5 years taught me something about the culture… most Michigan residents are blind to some facts.
Fact #1: Toyota and Honda are largely American car manufacturers. They employ Americans. They produce cars in America. Their stock is traded on our stock exchanges. Their parts come from America. Toyota and Honda are just as American made as Ford, GM, and Chrysler. All automakers are multinational corporations including Ford, GM, and Chrysler. The rhetoric of “but the profits go back to Japan” is just silly! It may have been true 25 years ago… but follow the money and you’ll see most of those dollars are now spent right here in the United States.
Fact #2: The Big 3 have outsourced more auto manufacturing than Toyota or Honda. In late May I was filling up my Camry in Shelby Township, Michigan and a man started yelling at me. “That f–king Toyota is the reason our community is in the the toilet! Why don’t you buy an American car!!!” After hearing this for 5 years I finally snapped. “The Toyota Camry as been the #1 selling sedan for 15+ years. It is made in Kentucky… which is a state in case you didn’t know. And that car you are driving was made in Canada. And that Ford over there was made in Mexico. Your car may say Chevy but you and I both know it was made somewhere else so why don’t you buy yourself an American made car and get yourself a Toyota?” He cussed at me some more and drove off. The fact is that the Big 3 have outsourced almost all of the car making process overseas. Ask any engineer and they will tell you. Korea. Mexico. India. Canada. Russia. China. That’s where Ford, GM, and Chrysler get their parts and build their cars.
Fact #3: Made in America is just a union slogan. I hate to say it but it is true. The concept of a “foreign car” or an “American car” is really just code language for “union made” or “non-union made.” While quality has increased a lot in the past few years, the union name is shot in car-making. Very few people I know consider whether a car was built by union autoworkers when they buy a car. They are looking at quality, gas mileage, style, etc.
If the former Big 3 are going to make it for the next 100 years, they are going to have to make it on their own. We live in a free market system. At the end of the day the consumer will decide what to buy, which in turn should decide if a company lives or dies. Hiding behind labels like “American car maker” just won’t cut it anymore. Especially when it isn’t true. Even if it were true I don’t think consumers care enough to change their minds. I heard a CEO say, “If we want an American car manufacturer left we will need a bailout.” What a load of garbage! I thought we were a free market country? If we want an American car manufacturer than they better make some money!
Instead, they should build their brand as independent brands. This worked well with the truck buying public as you have “Ford Men,” “Dodge Men,” and “Jeep Men.” Let’s see if they can build a brand of loyal customers in the small to mid-sized car.
It would be easy to read these ideas and think that I hate the former Big 3. Not the case. I just don’t think that we should support broken systems and companies that can’t make money with our tax dollars. I believe that if they can start living in the reality that people don’t like to go to a dealership, forced unions are bad for business, and they shouldn’t lie to consumers about being American car builders… that the former Big 3 can recover.
That is, if they can cope with my idea #4.
What about you? Do you have ideas for the former Big 3? Share them by leaving a comment.
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