The Myth About The American Automobile Industry

Many of those from academia who have made careers out of studying the American automobile industry have mistakenly said there wouldnt be any long lasting effects if the industry were to cease to exist. The slack would be taken up by the foreign companies so says these experts from acedimia. And labor costs are just to high for

American companies to make money according to them.
The truth is much different then what these experts go around telling the media. Labor costs are only amount to about 10% of the cost of building cars. And the reason the American Auto Industry is in so much trouble has nothing to do with unions or high wages. It has everything to do with bad management. Rick Wagoner has managed Gm into the ground. The guy running Chrysler has never run a car company before. Ford's Chairmen Allan Mullay has a lot of manufacturing experience and is a smart man who has made a lot good moves. Ford's qualilty is equal to any Japanese company. But he dosent have any background in creating new product.
If the American car companies arent nationlized the United States could become an economic colony of the countries we now compete with. The American standard of living would never recover.
Chrylers should be bought by the government and Ford given loan guarentees since they are the healthest. Gm should be forced into bankruptcy and then rescured by the government. We will see a depression if these steps arent taken