Tuesday, December 16, 2008

Corporate Welfare Doesn't Work

Bailing out the auto industry on the backs of taxpayers, many of whom can't afford to buy the products of that industry, just perpetuates that fact because increased taxes later on to pay for it all will mean the average working person will have even less to spend on a new car.

What the auto industry should be focused on is making affordable, reliable and economical to operate cars for which there is a huge pent up demand (check out the statistics of how many cars older than 10 years are on the road!)

Profits from this market segment may be less than the types of cars currently being flogged at us but if the masses were to buy these cars in volume, then auto manufactures could start making money for a change. Simply throwing money at the situation will only delay the inevitable. The market is clearly communicating to the auto industry (and not just the Big Three) by not buying their products. It's time the manufactures start listening to customers and act like responsible, properly managed businesses instead of spoiled rich kids looking for Big Daddy to raise their allowance so they can continue to fool around!