Romenys Editorial In The New York Times Dosent Go Far Enough

REBUILDING THE AMERICAN ECONOMY STARTS WITH REBUILDING THE AUTOMOTIVE INDUSTRY The only way to do this is to Nationalize it. If this isnt done Americans will lose the highest standard of living in world. Good paying manufacturing jobs made the United States the most powerful economey in the world. Romeny says high labor costs besides bad management ruined the industry. Well Germany's auto industry labor costs are even higher than the U.S. and they make plenty of money. Why? Because companies like Bmw and Mercedes make cars that have pricing power. They make a product where they tell the market what the price is. The Little Three are usually forced to cut prices down to where the consumer will buy it. Detroit with high labor costs can't be profitable like that. Yugo or other entry level automakers sell cheap just to get entrance into the american market.Their cheap labor costs are the only they thing they have to offer so they made a cheap car. It was stupid for Gm to compete like that. Romeny also said new automotive leadership should come from outside the industry. Thats ridiculous. That has been tried in Gm and it didnt work. Being chairmen of an auto company is picking and developing hit cars. A stranger to the industry wont have the experience to feel what the market is looking for.
Gerald Greenwald it the father of the SUV. When Chrysler bought American Motors no one understood why. American Motors was an obsolete company with dinosour cars. Why pay a billion dollars for a company like that? But that is what Greenwald forced Chrysler to do. And at the time there was a lot disention in the company over that decision. Many in the company like Harold Sperling a top executive thought Chrylser should spend its money on improving its car line-up. Which made a lot of sense to most analyists. Lee Iaccoia sided with Greenwald only because they were friends and Greenwald left a good job at Fords to help Iaccoia rebuild Chrylsers. The rest is automotive history. Greenwald took Amc's Jeep Technology and created the modern Suv. And Chryler being ahead of everyone else was able to set the price. And consumers paid it. It took a lot of knowledge and experience to develop a product like that. The kind of knowledge and experience you can only get by growing up in the industry.
The industry must be nationalized quickley and its leaders should come from the automotive industry.