One Without the Other

Is there one sane person on Earth that still believes that the domestic automobile industry is not failing because of a combination of moronic government regulators, a belligerant labor force, and inflexible corporate decision makers that determined long ago that it was best to put customers last? If there is I would like to meet him for the purpose of documentation. Indeed, that is one rare bird.

Please, name for me one industry in America so ruled by, operated by, or powered by a larger gaggle of the suicidal? If these three locked arms and jumped off a cliff together their destiny would not be any more intertwined or deserved. (Don't say the steel industry because they already jumped long ago.)

Of course, it isn't the regulators that actually die in a flurry of lemming impersonation, for once they have taken part in the death of the domestic automobile industry, they can easily be resurrected to regulate some other poor schmuck industry into oblivion--their salaries and benefits guaranteed into perpetuity by the taxpayers from whom they suck their sustenance.

Ultimately, what will another $25,000,000,000.00 do for an industry that is destined to fail under current conditions when it seems as if all three combatants in the fight will either refuse or are unable to do what is necessary to change the playing field?

The government is not going to entertain any serious thoughts about making energy production easier in this country, is not going to backtrack on initiatives that ultimately mandated the credit crunch, is not going to make it easier for the auto companies to deal with labor, and is not going to relax non-market driven CAFE standards. In fact the government will most likely attempt to tighten many of these controls very shortly after Barack Obama takes office. Strike one.

The labor movement is continuing to cry for protectionist measures, dragging its heels on any monetary concessions, and demanding card check regulations. None of these tactics will do anything to help consumers who, by the way, have to buy a product to determine its viability in the first place. Strike two.

Finally, are auto executives willing or able to operate in a manner that more closely mirrors the Japanese model, namely quicker market adaptations, tighter quality controls, and greater reliance on streamlined operations? The answer to that question is yes, though the question not only comes perhaps too late in the game, but is currently playing second fiddle to securing the bail out money in the first place. Let us call this one a foul tip--the count remains unchanged.

The domestic automobile industry needs two things to viably survive into the future, an infusion of cash and a quick deviation from the current operating environment.

One without the other will inevitably result in failure.