US Automakers Make Good Products

This was a post the the MarketWatch website in response to a negatve thread about the performance of US automakers.

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There are a number of things not understood about the US automakers:

1) Many foreign automakers are government subsidized. At bare minimum, Toyota, Kia and Hyundai are or have been heavily subsidized by their governments. Toyota, in particular, was propped up for years as they floundered their way to competence. If you are old enough, you will remember when the label "Made in Japan" was synonymous with shoddiness. "Made in Japan" was the punchline for jokes. The Japanese government winched Toyota out of the muck.

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2) US cars and trucks are not junk. One reason for this misconception persists is from decades-old performance. Nowadays, US trucks and cars stand up just fine to their competition. A mob mentality persists about US cars and trucks being shoddy. This is not justified. Google the info on this matter. In that vein, I will present here just one excerpt from a Car and Driver magazine article. This excerpt illustrates the ingrained prejudice about American cars, and how facts can uproot this prejudice:

"600 magazine subscribers participated in the first ride and drive, which was designed and presented by Car and Driver magazine in the Washington, D.C. metropolitan area in mid-December 2006.

Consumers drove three vehicles: a 2007 Honda Accord EX-L V-6, a 2007 Toyota Camry XLE V-6 and a 2007 Ford Fusion SEL AWD V-6 on a closed course.

Before the drive, consumers rated the Honda and Toyota vehicles higher than the Fusion. But after the drive, opinions of the Fusion improved dramatically, leveling the playing field with the competition. Fusion also emerged as the clear winner in key areas including “Styling,” “Handling,” “Fun to Drive” and “Performance."

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3) Consumers Reports is biased. Take a look at where Consumers Reports decision-makers end up when the leave Consumers Reports. They often end up with fat-paying jobs with foreign automakers. They are bought off.

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4) US automakers are hobbled with a built-in benefits handicap. Estimates vary, but approximately $1,500 is tacked onto each car and truck right out of the chute to pay for medical benefits for autoworkers.

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5) If the automakers go under, there will be a hellish ripple effect. Vast networks of suppliers will go under, and all the people dependent on the suppliers will go under. It will be much harder to be snarky about the US automakers when that economic tsunami hits you where you live.

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6) Much ado is made about how reliable German cars are. What is not mentioned is that they have very expensive, often mandatory maintenance schedules that must be adhered to to retain the warranty. US buyers of US cars, on the other hand, tend strongly to neglect maintenance and drive cars until they have a major malfunction. This strongly affects longevity. More realistic would be comparing US cars and trucks that are rigorously maintained vs. German cars and trucks. I personally know many people who have US cars and trucks with over 200,000 miles. I myself have a Ford Ranger that has 250,000 miles on it (and I have been neglectful of its maintenance).

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Bottom line: In recent years, public opinion about the quality of US cars and trucks has been unjustifiably negative. Little opposition has been mounted against this mob sentiment. It's time to recognize the valid efforts and demonstrable quality of US cars and trucks. It's time to be discerning, not knee-jerk. It's time to give the US automakers a hand. If they go down, it will hurt you, I guarantee you. Even if you're insulated by a net worth of billions, you will see others in your circle of acquaintances feeling the pain.
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