Setting the Record Straight

November 21, 2008

Guzzling From the Tin Cup

The Best Favor Detroit Did Not Want
     Doubtless, the U.S. auto industry won’t see it this way, sr-dingelljpegbut Congress did Chrysler, Ford and GM a huge favor as their CEOs testified elsewhere on Capitol Hill. House Democrats ousted John Dingell as chairman of the Energy and Commerce Committee.
     As we noted in Help the U.S. Auto Industry: Vote Against It, as chairman, and before that as a high-ranking member on the panel, the Michigan Democrat did grave harm to the auto industry by giving them what it asked for. What it asked for essentially boiled down to “help us fail to compete with foreign automakers.”
     Just before the gas crisis in the early 1970s, Congress wanted to require catalytic converters on all cars to reduce pollution. Dingell helped the automakers defeat the first measures, while foreign automakers began including them on their cars.
     Dingell also helped automakers defeat efforts in Congress to require cars to have low-impact bumpers as a safety feature and to reduce weight to reduce fuel consumption, again while foreign makers included them on their cars.
     He also helped the automakers prevent stronger CAFE standards governing fleet fuel-efficiency. Together, they wrangled an exemption of trucks and certain large cars from the standards and even gave them a business-tax advantage. Foreign automakers widened the gap between average miles per gallon on their cars versus domestic ones.
     After the gas crisis eased and energy-conscious President Jimmy Carter was ousted from the White House, lights were turned back on federal monuments and all the calls for alternative energy sources began being ignored. At the same time, U.S. automakers began promoting ever-larger behemoths for the road, spending billions on advertising to begin a new trend.
     An advertising pro once told us the mantra on Madison Avenue had become “you can sell a boomer anything,” and this was the age of the all-consuming boomers. The macho-vehicle rage began and Detroit reaped the higher profits on more-expensive machines exempt from the CAFÉ fleet averages. Toyota, Honda and others continued heavy research on greater fuel-efficiency, alternative propulsion techniques and alternative fuels, and churned out the high-quality cars that resulted from that work.
     When Detroit began seeing the flight to better-quality cars made abroad, its best response was from Lee Iacocca who claimed that at Ford, “quality is job 1” even before the company lifted a hand to try better quality.
     With all their congressional goodies in hand, Detroit-based automakers decided they did not have to compete with foreign-made cars and didn’t. So when the muck hit the fan with the latest fuel crisis, their downfall was secured.
     As far-sighted managers, foreign automakers bucked the effort by Detroit to paint them as home-wreckers by locating research and manu- facturing plants in the United States and hiring Americans to build their cars.
     Of course, members of Congress heard none of this explanation during the round of hearings on the industry’s request for a piece of the financial meltdown bailout, pleaded for by CEOs of the “Big 3” who had flown to Washington on private jets with huge expense accounts and tin cup in hand.
     But House Democrats, most of whom favor the bailout because of the union jobs they think would be saved, did the auto industry a favor and doubtless will put in back in condition to compete, if it survives.
SCENES FROM A COMMITTEE     The new chairman is Henry Waxman, a tireless and dogged California Democrat who wages war on behalf of the environment and consumers, a combination that is just what the auto industry needed lo these many years instead of the Democrat who helped them on their path to oblivion.

(from http://www.straightrecord.com)

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