Commentary
Regular readers will surely recall that for years I have been highly critical of automakers for giving up on free enterprise and the ability of the consumer to determine the cars and trucks they preferred, and caved to the whims of government.
When I saw the headline – The Auto Makers Cry for EV Mercy – over an opinion piece by the Wall Street Journal’s editorial board, it was my opportunity to again address this issue.
I didn’t quarrel over matters of safety, like seat belts, air bags and child restraints. It was the introduction of café standards to reduce greenhouse gas emissions that concerned me. It led to autos lighter in weight and those who wanted a big car or SUV saw their options reduced.
The auto industry has been the key driver of our economy for years. Henry Ford, who created the Model T in 1908 and the first moving assembly line, making cars affordable for the middle class, would be aghast to see how the mighty industry has gone weak-kneed, taking marching orders from unelected bureaucrats at the EPA. Not to mention the Secretary of Transportation, the former mayor of South Bend, Indiana.
By accepting bailout money in 2009, GM and Chrysler became joined at the hip with Uncle Sam and were nicknamed Government Motors. My Ford friend often reminds me that Ford did not need a bailout.
Today, the Biden administration seems willing to take a beating over the price of gas at the pump, over $6 a gallon in California. They see it as a means for more EV sales and upward movement for its transition to all-electric vehicles.
But when the government picks winners and losers in the economy, with its lack of business acumen, their predicted winner – EV’s – has become a loser for the automakers, as they are losing thousands of dollars with every EV sold. That simply cannot continue.
With the slowing demand for EV’s, auto makers are seeking help from Uncle Sam to make them more profitable, like reducing or removing the tax credits on purchases. They complain also about the cost of compliance to fuel standard mandate – $2,151 per vehicle.
Not only have the auto makers lost dealers who do not want to make the investment of supporting EV’s, the unions are aware of the fact that it takes far fewer members to product an EV than a combustion driven car.
Interestingly, the Wall Street Journal piece touches on my belief that the auto industry has left the desires of the consumer behind, with the comment, “This gives away that complying with government mandates, not satisfying customers, is their chief preoccupation.”
Some might say that Henry Ford didn’t give consumers a choice when he said “Any consumer can have a car painted in any color that he wants so long as its black,“ but it was for good reason. It was part of the efficiency and uniformity he built into his moving assembly line. Incidentally, few people know that the paint he used – Japan Black – was selected because it dried quicker.
The industry has come a long way since 1908, and consumers have a great deal of choice, but choosing between gasoline combustion driven cars and EVs is causing problems. Consumers no longer have a voice in determining what models they want, the price they are willing to pay, and in the end which models fail or succeed.
The Biden administration is guilty of setting a goal to go electric that was far too aggressive, considering the immaturity of EV manufacturing, and an infrastructure that is unable to support them, but the auto industry cannot be held blameless with its CEOs who failed to take a stand.
No tears here for the auto industry. They should have flexed their muscle.
May God continue to bless the United States of America.
