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It's a chicken or egg thing. No demand, no sales. No sales, no imports. No imports, no visibility. No visibility, no demand. Perhaps if the Chevrolet Spark experiment is successful, everyone else will follow. We can only hope.
really it's not. Maybe in a pure marketplace but not with the business model that currently exists in the us auto industry.
The don't start with a 'clean sheet'. thay start with built in costs that are not material & normal labor. Every American car includes the cost of PAST union employees current health care. or the unfunded liability of retired workers. this amount is thousands per car. So they have to cover that cost to make a penny. That is why the US manufacturers build large loaded vehicles. That's why they cant compete w/ kia & hyndia. That's why kia and hundia can make money all day long on entry level vehicles. They DONT have the overhead. Sure the demand is there, but the american manufacture cant fill it
And I cant find the post but someone implied that the US car manufacturers gets subsidues from the us government on a regular basis. That is not true. The bailout is/was the only time (outside of chrysler....20 yrs ago, and the paid back all the money) GM & Chrysler still owe a sizeable about of the bailout money to the us governemnt.
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