Auto Manifesto

May 29, 2009

Lutz Wants Permanent Gov Auto Task Force

Automotive News reports Bob Lutz (GM Vice Chairman, possibly next in the firing line if it weren't for his upcoming retirement) is calling for a more permanent form of the automotive task force, to establish ongoing dialogue with the automakers and help the industry become more competitive through fuel economy regulations, trade rules, and currency issues. He claims these are advantages that Asian manufacturers receive through their governments. No mention of European (German) companies who've also taken significant US marketshare.

That's all fine and dandy. But this is another clear indicator that Detroit hasn't learned its lesson (Bob, it's not them. It's Detroit). In a free market economy the most successful companies produce the best cars, cars that the market wants in sufficient quantities. GM and Chrysler haven't done enough, and aren't doing enough. Calling for more government assistance in the form of trade protection is not going to improve the product.

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