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To: mn12; Rate_Determining_Step
Unfortunately, I do have to agree with you guys regarding the "cheaply made" parts and their consequences. However, what's the alternative?

If all parts were made to the exacting standards you support, a basic automobile would cost over $35,000! Most of the cost of a modern American car is made up of things such as taxes(huge, and mostly hidden), regulatory costs, legal costs(ALWAYS transferred directly to the consumer), mandatory safety and environmental features, and union labor costs. In other words, things almost completely unrelated to the cost of actually building the car.

Since these factors(especially the government-related ones) tend to inexorably rise year after year, the automakers have to save money somewhere, or no one will buy their cars (note: many of these same factors DO NOT affect foreign manufacturers to the same degree they do to American-based companies).

My own personal suggestions for getting quality, affordable U.S.-made autos? Simple.

1. Tort Reform.
2. Repeal of CAFE standards.
3. Reduction of "corporate" taxes.
4. Reduction or repeal of onerous regulations.
5. Somehow reduce union influence on corporate practices.
6. Tort Reform.

Doing these and some other things would help immeasurably, in auto manufacturing and many other industries as well. Not that I think the "Big Three" are all Saints, but it is useful to realize that not ALL our complaints are their direct fault. Every class-action lawsuit, every new tax on "those evil corporate barons", every wrongheaded environmental regulation and nanny-state safety requirement serves to increase the prices we pay, and reduce the overall quality in an attempt to hold the price line.

Happily, We The People do have some say in those outside costs.


47 posted on 03/31/2002 6:45:28 PM PST by Long Cut
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To: Long Cut
You are correct in the lame issues that face the Big 3, but the Japanese face worse and the Germans worse still.

However, there is one point that you make that just falls into their way of thinking...

If all parts were made to the exacting standards you support, a basic automobile would cost over $35,000! Most of the cost of a modern American car is made up of things such as taxes(huge, and mostly hidden), regulatory costs, legal costs(ALWAYS transferred directly to the consumer), mandatory safety and environmental features, and union labor costs. In other words, things almost completely unrelated to the cost of actually building the car.

This is totally untrue. I've got 220K on my 87 Supra and it's as solid as a rock. This isn't a big deal. The cars just last. There's no magic here and Toyotas and Hondas are not much more expensive than comparable models from Detroit. Nearly all of the QC gripes are not new technology, but stuff that's as old as dirt. Stuff they figured out in the 50s & 60s. It's just they always do stuff on the cheap.

Sometimes is seems as though people want cheap cars that fall apart at 100K. However, it all starts with people cutting them slack.
50 posted on 03/31/2002 8:19:22 PM PST by Rate_Determining_Step
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