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106 comments on Bush to GM and Ford: Build a Better Car

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Luis de Sousa on January 27, 2006 - 3:32am Permalink | Subthread | Comments top
Nice post peakman.

When Mr. Bush stepped in the White House one of his first actions was to impose quotas on the imports of steel and other metals. By then some economist said: "that will kill the american auto industry in a few years".

A guess we are at those few years later. If oil has a bigger role on that I don't know, but it's important to aknowledge this steel war thing.

Another paralel can be made with the aerospace industry, where Boeing has been losing ground to Airbus, competing in the same market. With the same fuel costs.

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Glenn on January 27, 2006 - 10:10am Permalink | Subthread | Parent | Comments top
You are absolutely right. That episode is exactly what scares me about Bush reconsidering and trying to prop up a failing / uncompetitive industry.
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TJ on January 27, 2006 - 10:18am Permalink | Subthread | Parent | Comments top
An industry that is 5% of GDP is a little too much to just give entirely away to foreign competition.  The world wants to buy vehicles of some sort; you better have a way to make them.
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jkissing on January 27, 2006 - 1:01pm Permalink | Subthread | Parent | Comments top
No problem. just expand the existing Japanese plants in Ohio, TEnnessee, etc.
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Jack on January 27, 2006 - 1:23pm Permalink | Subthread | Parent | Comments top
Do you have any data to support the claim that auto manufacturing is 5% of GDP? It may be, but that does sound a bit high to me.
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Oil CEO on January 27, 2006 - 1:38pm Permalink | Subthread | Parent | Comments top
(GM sales: $193B) + (Ford sales:$178B) = $371B

US GDP = $11,750,000,000,000

So Ford and GM = 3.2%

I gues if you added in Chrysler and the American components of foreign firms manufacturing here that would bring it to 5%.

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light299 on January 27, 2006 - 1:59pm Permalink | Subthread | Parent | Comments top
Plus you forgot AC Delco / Delphi, Philips Magnavox, Direct TV... to name a few under GM's vast umbrella.
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