Thursday, April 20, 2006

From the autoextremist (Everything except the next two lines)...

What's the difference between a redneck and a NASCAR fan?
None :)

So, I think it's about f^%-ing time...
It has come to our attention that serious discussions are taking place for the first time in the conference rooms of one domestic manufacturer in particular on a subject heretofore unthinkable in Detroit. The subject? Pulling out of NASCAR. Yes, it has been mentioned before, and I have predicted it for months now - ever since the announcement was made that Toyota would be buying its way into the France family circus - but we have confirmation that not only are the discussions taking place, they're so far down the road that a timetable for a pullout has been created, taking into account the end dates of existing contracts with individual racing teams currently aligned with this particular manufacturer.

This can't be overstated: Considering how NAFTA is effectively off the table even while discussing immigration and other trade reform, Adam Smith argued for movement of free labor, not just free movement of capital. Without trade agreements reflecting this, immigration is as simple as osmosis, people will go where the jobs are. Also, tax breaks on the order of hundreds of millions to a foreign company so they can setup a manufacturing plant, doesn't happen in other countries a lot.

PMD: The Saturn Aura has the design presence, the content, the tasteful interior packaging and the overall value equation necessary to make a real impact in the market. In short, it has "hit" written all over it. The Aura's problem? It can be encapsulated in one eye-opening number - $175 million. Why is that number significant? $175 million is the amount of money Toyota is going to spend to launch the new Camry. If Saturn is lucky, they might get $50 million to launch the Aura - that is, if they're lucky. The number will probably be closer to between $32 - $40 million. The Aura is a perfectly competitive car in every respect, with the added bonus of an authentic, on-the-road presence - and it's in danger of getting launched in such a way that the majority of the car-buying consumers out there will barely even notice it exists.
...
we're now dealing with a global economic world that cares little about "free" trade or doing business the way we as a country think it should be done. Every import auto manufacturer has exploited our way of doing things here. Build plants? Sure, we'll do that - if you guarantee a big enough incentive package that would make it worth our while. But if a Detroit manufacturer were to ask for some relief to do business the answer would be: "We're not bailing your asses out, what have you done for us lately?" It's as if the U.S. government is dismissing the 100+ years that the automobile industry has thrived here, and the role it has played in powering the economic engine that made America's economy the envy of the world.
...
Consider this: If each and every vehicle sourced from an offshore-based automobile company (whether they're built here or not) had a $1,500 tariff slapped on it that would be paid for by the manufacturer and would go directly to a fund that would underwrite the pensions and health care costs of our own automobile industry and its workers, then we'd be a lot better off.

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