The domestic auto companies have been losing market share primarily to
the Asian manufacturers. The reason for the dire straits of our
domestic manufacturers is because of our country's innate belief in
what we call "free trade". Is the trade really "free"? The Japanese
manipulate the exchange rates and have fostered a "weak yen policy"
for decades. Toyota last quarter recorded a $3 billion profit. In
their press release they stated that $1 billion was currency related.
To state this in simpler terms, this benefit is equivalent to a cost
advantage of $3500 per small size automobile, $6000 per mid size
vehicle and $11,000 per luxury vehicle. This excludes health and
retiree costs, the so called legacy costs that burden the domestics.
If the trade is really "free", why is the currency "managed"?

The free trade experts point to the fact that the Japanese are
building manufacturing plants in the U.S... However, they do not point
out that up to 70% of the components for these automobiles are
supplied by the auto parts manufacturers from Asia. That is why our
component manufacturers such us Delphi and Collins Aikman etc. are
going into bankruptcy. We are forcing our component manufacturers to
re-locate to Asia just to remain competitive with the Asians. We are
exporting our technology and eventually we will be performing most of
our R&D abroad.

Since we are on the free trade subject, let's take a look at NAFTA.
Since NAFTA the domestics and the import manufacturers have set up
plants in Canada and Mexico. We used to have surpluses with Canada and
Mexico before NAFTA. Our trade deficit with Mexico has gone from a
surplus of $2 billion to a deficit of $26 billion (mostly because of
the auto trade imbalance). The domestics have also moved their
manufacturing to Mexico and Canada because of cheap labor in Mexico
and no health costs in Canada. This shift in manufacturing is
destroying our manufacturing base in the U.S.

The Auto industry is directly or indirectly responsible for 11 percent
of the U.S. manufacturing and 4% of the U.S. GDP. As we export our
manufacturing to cheap labor / no health cost countries, we will keep
increasing the standard of living in Mexico, Canada and the Asian
countries by destroying the living standards in this country. With
out current Trade policies we will lose our manufacturing base in this
country and eventually be unable to respond to a global crisis like we
did in World War II. Even Joseph Stalin admitted that the Allies would
not have won World War II had it not been for the Industrial strength
of the United States.

It is no accident that the Asians are building truck plants in the
U.S... Import Pick-ups have a 25% tariff. Most of the Truck
manufacturing by the Japanese is done in Thailand. It is therefore not
surprising that Thailand is now seeking a free trade agreement with
the U.S. The only strength of the domestics is now going to be
attacked internally and externally by the Asians. It would not be
surprising that our highly "lobbied" (aka corrupt) congressmen are
swayed into adopting another NAFTA type agreement with Thailand.

The U.S. market is the richest market in the world. No wonder everyone
wants to play in our market. The Japanese make 70% of their worldwide
profits in this country. These very same countries do not have a free
trade policy in their country. When the Japanese started their Auto
industry in the 1960's, they asked all foreign manufacturers to leave
until their auto industry base was strong enough. This "Managed Trade
Approach" has now been utilized by the Koreans as well. The U.S.
manufacturers sell less than 5000 units annually in Korea. We have let
the Asian manufacturers call the shots because of our foreign policy
interests with these countries. We are letting the U.S. State
Department manage our Trade Agreements. Our Trade agreements play
second fiddle to our foreign policy. We keep looking the other way
despite the destruction of our U.S based manufacturers.

Auto exports from Japan and Korea to the U.S. keep increasing every
year despite the Asians having manufacturing plants in this country.
Why can we not ask the Asians to put a moratorium on imports, and any
increase in their vehicle sales in the U.S. should be developed from
their manufacturing plants in this country? This way they would have
to invest in this country and we could keep our manufacturing base
intact in the event of hostilities. The U.S. companies in Asia and in
Europe build cars in Asia and Europe for consumption in Asia and
Europe. We must insist the Europeans and the Asians do the same in our
country. Let's make the playing field level for a change.

With China now joining the auto manufacturing fray it is going to
become even more complicated. Again China insisted that the foreign
auto companies build plants in China. I don't see the Koreans or the
Japanese exporting cars into China. China again is using the Japanese
model of the "Managed Trade Approach". What is even more alarming is
that the build capacity in China is going to be at least 4 million in
excess of their domestic needs. Where do you think these cars at "the
China Price" are going to come? If we do not change our Trade policy,
in 10 years we will become a 2nd tier nation. Most of our auto
manufacturing will move to Asia. We could potentially lose 2 million
auto related jobs and as our other manufacturing base deteriorates,
this could lead to a loss of up to 15 million jobs

As it is the brain drain has started. More Americans are going to
China and India to work. Getting an engineering degree for a U.S.
student is not going to be very lucrative in the future. Instead of
attracting the brightest and best from the world over, we are going to
be exporting talent to the rest of the world because that is where
these manufacturing and engineering jobs are going to reside. Our
standard of living in this country will continue to deteriorate while
the rest of the worlds will keep getting better.

It is unfair to blame the domestic manufacturers for the legacy costs
of health and retirement. Before you blame the American Auto Makers
for their high cost of manufacturing, take a hard look at your
surroundings. None of the comforts we take for granted today would be
around you were it not for the "fact that American auto makers and
other traditional manufacturing companies created a social contract
with government and labor that raised America's standard of living and
provided much of the economic growth of the 20th century." (From Rick
Wagoner's editorial in the WSJ, Dec'05). So before you blame the Rick
Wagoner's, Bill Ford's and other leaders of our domestic auto
companies, blame our President, and our government for putting us in
the mess we are in today. Even Jack Welch could not fix GM or Ford.
Leadership is not the problem. We can blame the product that the
domestics produce but no product is going to be good enough in the
face of an $11,000 disadvantage on a luxury vehicle just due to
currency manipulation.

We need a national policy that levels the playing field. We also need
to go to a "Managed Trade Approach" and protect our manufacturing base
and our living standards. Let the Asians build plants in the U.S., not
only for assembling the automobiles but also the components that go
into these automobiles. Let's not support "free trade" as it is not
"free". Let's not have our foreign policy dictate and / or monitor our
trade agreements. Let's not make agreements that give countries an
opportunity to come into our market for the greater good of our
foreign policy. We should not open our markets just to increase the
living standards of the world at the cost of living standards of
Americans. After all, some one very smart said "charity begins at
home".

GM knows how to build cars. Before you blame all the problems on GM and the domestic auto makers please understand the reasons for their loss of market share.

Bob, this is obviously a form comment you place on all the comment-able article you find that criticize GM as an automaker in any way. I have three things to write in response:

1. This article is about an advertising technique employed by GM that I find reprehensible. Your comment is therefore a long, whining non-sequitur.

2. GM has wilfully ignored changing international market demands in terms of more fuel-efficient cars and, for all your suggestions that it's a victim of the federal government, lobbied that government hard to not introduce the sort of industry emissions standards that are current in other developed countries. It has ignored the market in favour of trying to shape it, disrespecting the interests of its employees and shareholders and the desires of its customers. So while you complain about trade agreements in relation to GM's performance, you might want to throw in a few complaints about that too.

3. GM cars are boring. All the manipulative, child-directed product placement in the world won't change that. Only better cars will.

What do I care what kind of car ferries me around in 50 years...I just hope I'm sane enough to even know it! However, your comment is insightful because I remember my parents saying similar but worried about being ferried in Japanese (or foreign)cars...something seen as a terrible thing then....but now the japanese cars are all the rage. And deservedly so, I've owned both honda's and toyotas in my life span. Their cars have served me well and I don't have a complaint about either brand. They are well run car companies. But I will tell you what most will not believe nor take the time or have the open mind to find out. The domestics and especially GM are making great cars...yes better than the japanese now in my view with more options , edgier design -- that's right, edgier design, at better price points (at least i can say that about the 2007's). But don't ask anyone who grew up in the 60s, 70s or 80s to believe that...they can no more get their head around that than my parents could get around the idea of a well made foreign car 35 years ago. What goes around comes around and I now have 2 GM cars in my drive way not because I believe in driving american, or providing jobs to americans or any other patriotic notion other than they work the best for what my family requires, they are reasonably priced, and when I test drove several makes they were they simply stood above the best. I don't have a problem with the product placement in a child's movie, I watched more popeye cartoons than any of my friends when I was a kid and I still don't like spinach.

Spinach is good for you, Johnstone. It should promote itself. When e.coli isn't involved, of course. Another thing you might want to bear in mind about spinach is that it's a nutritious but bitter leafy plant you can grow in your backyard, and not a brand. The marketing dynamic isn't the same.

I'm glad GM cars have answered to your family's needs. What models do you have and how did they compare with competitors? Personally, I think GM has a long way to go in terms of performance, fuel efficiency and emissions before it can recoup its losses.

I work for General Motors and am a proud member of Generation X. I resent you unAmerican people trashing General Motors like this and spreading uniformed lies because of your disgusting bias towards foreign cars and your hatred of The Untied States of America. Now, though I am a member of the UAW, I am not a Demorat by any stretch of the imagination. I am not a Republican either. I am a free-thinking independent who loves God, family, and country. And even before I went to work for GM, I always bought American.
As for GM's quality, it has surpassed Toyota. In case you missed it from the liberal, God-hating, anti-American media, Toyota has had more recalls than any other auto maker for the last two years running. Meanwhile, according to Edmunds.com, GM had more positive feedback about their cars than any other auto maker this year.
Get your facts straight and stop lying about a great American company. Oh yeah, and I'm more than happy that Bumblebee will now be a Chevy Camero instead of an old VW Bug. Autobots, roll out! And God bless America!

Good lord, I thought this thing died before it was born months ago.

Catmax, I don't understand your comment in any context except throwing up a link to GM products and saying that the only thing that matters when it comes to advertising is that it's effective. Sorry if I misunderstand you, because as it stands I certainly don't agree with you. There are lots of things that matter in advertising besides how effective it is, like how misleading it is and how damaging it is. Consumer rights aside, companies increasingly pay for that shit.

J Rice, I hope GM shows you the same loyalty you show it, but that's not really part of its track record when it comes to its employees. And what do you mean by mentioning buying American in a comment about GM when so many of their automotive components, assembly plants, and staff are as 'unAmerican' as I most definitely am?