economics and automobiles

This week (and today as well) we see the impending the bankruptcy of General Motors. It brings the country's focus back to the automakers and (in my opinion more importantly) how both GM and Chrysler are currently and for the foreseeable future subject to the dictates of the government. I mean this as even moreso than in the past (emission standards, safety standards, etc.), where the government will be telling these companies what kind of cars to make and maybe even how many. This is not a situation we as a country want to see. This shows the difference between the market economy of the past and the communist (government-run) economy we (by all indications) are moving towards. If anyone thinks this cannot happen hasn't been paying attention. Any automobile made today for driving in the United States needs to meet safety, emission, and fuel efficiency standards. We are being regulated more and more each day.

There may already be some indications of our government exerting its influence on the automakers. One is currently being looked at by a blogger on Redstate (just one of multiple blogs I read), as to whether or not certain Chrysler dealers were 'closed' based on which party they supported by monetary donations. Of course denials abound from Chrysler and the government that this never took place, however, when you look at which dealerships were closed, how well they were doing, and add in their political contributions, the 'appearance of impropriety' begins to show. Now if the implication is true, it's not just government influence on an industry, it's punishment for your political beliefs, and a 'back door' way to shut down opposition without directly attacking the first amendment. This should increase our vigilance, if we care about protecting our way of life.

The other indication comes in the form of oil and gas prices. We're in a down economy (recession or maybe the beginnings of depression depending on your point of view), and yet oil and gas prices are going up. You could argue it's a sign the economy's improving, but at this point nothing else indicates that. If you believe in conspiracies, you could argue the government is raising the oil and gas prices on purpose to drive people out of their current cars. What would they get? Why the 'new' fuel efficient and 'green' cars that will be made by the post-bankruptcy GM. That's if you believe in conspiracies.

I will continue to watch what goes on with interest. The automobile industry will, in this case, be a leading indicator of the future of our economy, government, and society. Admittedly, I will be watching with a certain degree of apprehension. If what we've seen so far is any indication, we can only look forward to more and more of a communist-style economy run by the government.

Thoughts on cars

With all the news the auto industry has made this week, I thought back to some of the vehicles my parents owned during my years growing up.

During that time, which seems somewhat ironic at this time, my parents owned a car made by a company that no longer exists as an independent car company. The car was an AMC Hornet Sportabout station wagon. It was one of the first cars I remember, so it made an impression. The car and how it performed overall seemed fine, at least by my small child standards. I don't remember the car ever breaking down, or having any major mechanical defects (although the rear passenger door didn't like to unlock sometimes). I think my parents owned it for 5-6 years.

I think they would have owned it longer, but at the time my parents had bought a towed camper and the car couldn't tow it, so they traded it in for one of the first GMC Suburbans (first model year anyway). I found out later the vehicle was slightly unusual (the engine they put in was too small – at least for that size), but it served the purpose my parents wanted it for. I hardly noticed at the time the gradual disappearance of the AMC brand, but I thought about it more as I got older and looked back.

I recently did some looking around about the life and demise of the AMC brand. They were actually a fairly popular brand in the 1970's, making vehicles people wanted and being 'ahead of their time' regarding safety and fuel efficiency. What did them in was some poor choices (AMC Pacer), and not having enough capital to deal with economic difficulties. They partnered with Renault in the 1980's and were eventually absorbed by Chrysler. Apparently they were the last 'independent' automobile company (in other words, outside of the 'big 3' in Detroit).

As I got older, the vehicles my parents owned seemed to change with the times (by that I mean they didn't let cars get more than 7-8 years old), and my parents pretty much stayed with American automobiles, Chrysler products to be specific, although there was one import that my brother bought and my parents got from him, a Toyota.

I look back at my own car ownership history (as short as it is) and it's much more eclectic. There's been a mix of domestic and import cars, depending on needs, wants, and availability. Today, I've got two 'used' vehicles – one domestic van and one import car. I'm happy with what I have, since my purchasing criteria has more to do with how they perform than a particular company.

Brand loyalty used to be an important part of our culture and buying process. Today, I guess brand loyalty doesn't matter much anymore, but then again why give money to companies who either can't or won't change with the times and operate without assistance?