Tuesday, January 06, 2009

The Struggling Auto Industry

A few years ago I wouldn't have thought it possible that the American auto industry would find itself in the situation it's currently in. For years the debate had raged as to whether American cars were as good as foreign makes and whether it was good or bad to buy American. Having driven American, Japanese and German cars for quite some time I can honestly say that there is some difference but what I also feel is that in many respects, the American auto industry began to suffer because they didn't really listen to the people or respond to the times. What I mean is that when gas prices began to creep up in the early part of this decade, many companies began looking at alternate fuel-powered cars or more fuel efficient designs. Other companies stuck with their bread-and-butter type cars and never really responded and that led to some of the problems we are seeing today.


Now one can argue that companies like Ford and Chrysler didn't do anything that a company like Porsche or Mercedes didn't do but there is a difference. If you are buying a Porsche or Mercedes you have certain expectations and certain knowledge that you aren't going to be buying a vehicle that is necessarily a fuel efficient or economical car. However, on the other hand, if you see an American car that isn't as reliable, costs less but will be in the shop more then why not spend more on something that is sure to last for a long time? Having driven a 1991 Ford Escort for several years before purchasing a 2001 Honda Civic, I was surprised at the difference between the two cars. Although both had many of the same features, the differences lay in the reliability of the two. With the Civic I rarely had a problem whereas with the Escort, I'd have a problem crop up every now and again.


And now we flash forward nearly a decade and we find that some of these same complaints still persist and in addition, there are complaints regarding the economical outlook of some of these cars. When the push was on for fuel efficiency, American cars remained on the outer limits of being termed fuel efficient. Sure there are claims of best fuel economy in its class but when you class a vehicle by itself in a self-designated class then of course you'll be the best. It's hard not to be when you are competing against no one else. Perhaps some executives saw this as a 'flavor of the month' type of scenario where people got excited about fuel efficiency for a while and then forgot about it.


Now that times have changed and people's priorities have shifted from driving a macho car to driving something that will not be an additional burden on their wallets, the American auto industry is struggling to get back in the swing of things. I think saving the auto industry through loans is probably a wise thing as it will eventually affect the overall economy of the nation but I also think that it's the right decision to lay down the requirements that many are calling for and demanding that the American auto industry join the 21st Century in terms of auto economy. Saving the American auto industry is important because it has an impact on so many other parts.


Take for example the racing giant NASCAR. This sport has so many sponsors and such devoted loyalty that some fans will only drive a make that their favorite driver drives and will only purchase goods that sponsor their favorite driver. If the auto industry suddenly withdraws support to the sport, it's possible that the sport itself will go by the wayside and many other companies will begin suffering. It's all a chain of support and taking out one link in that chain will end up having ramifications across the nation. Now perhaps you can call this a selfish plea for support for NASCAR but if one thinks about it, it's not too much of a stretch to imagine and apply. After all, NASCAR has become one of the largest sports in the United States and with the growing number of foreign drivers taking part, it's no wonder that it would have an impact on the economy of the country as a whole. It just goes to show how important the auto industry is to everyone in our country.

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