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Home » Opinion » Commentary

Wednesday, December 3, 2008

KELLY: The road less traveled

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Paul_Rizza

Dear Mr. Kelly, You should verify your facts before writing your articles. The recently signed labor agreement with the UAW of 2007 will bring labor costs for the Big 3 in line with foreign transplants. It's a matter of if GM or Chrysler will be around when the full contract takes effect. It is a larger issue than labor! You neglected the major reasons that the Big 3 are at a disadvantage. Our government is NOT a partner or advocate of the auto industry, they are it's adversary. They have passed legislation after legislation that hinders domestic competitiveness and provides an unequal playing field where the foreign automakers enjoy all the advantages. This begins with our monetary policy. Japan and China manipulate their currencies to insure exports for their domestic industries. The President and Treasury Department have done nothing to stop that manipulation. Our trade policy insures that our markets are open to all foreign nations, Japan and Korea export a significant portion of their auto sales here, yet their markets are closed to US industries, and that is not just autos. China is a huge offender of copyright laws. Chery Auto literally copied the Chevy Spark in building the QQ. They were fined $11,000 dollars. A new car program costs up to $500 million dollars. Our energy policy is a farce. CAFE does nothing to decrease energy consumption. If Congress really wanted to increase miles per gallon on cars, they would tax gasoline like they do in Europe. People want to biggest bang for their buck, If gas is $1.50/gallon, they will buy trucks and SUVs. If it is $4.50/gallon they will buy small high mileage cars. Congress does not want to get voted out of office for making gas cost $8.00/gallon like in Europe. This last item is related to labor and retirment costs. If our government provided at national health care plan, the union would not have fought to have health care benefits that they've negotiated. Our government has place this last remaining manufacturing industry on the brink of extinction. They did not learn anything from the loss of textiles, electronics, shipbuilding, or steel. Please be clear about the decisions that brought us to this point and not just grandstand like everyone else. Sincerely, Paul Rizza
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RDH

Paul, Honda not only manufactures most of the cars, motorcycles and ATVs that are sold in the US here in the US, but Honda also exports vehicles made here, including to Japan. The CAFE standards apply to Honda, not just to US auto manufacturers. The price of gasoline is the same whether I put it in my Honda Pilot, or my Dodge Ram. We have not exported our manufacturing industry, we manufacture more goods than ever. However, Michigan and other states have exported manufacturing to right-to-work states like those here in the South. And of course GM, Ford and Chrysler, with the help of the UAW, have exported the auto building jobs to Toyota, Honda, Nissan, BMW, Hyundai, Mercedes-Benz and probably a few other "foreign" auto companies. Their plants are all over The South (Honda is in Marysville, Ohio and employs a member of my family). Every year Honda employees in Ohio reject the UAW. And every year Honda fails to beg the government for handouts. Go figure. ps. I quoted "foreign" because these are public companies and many Americans are partial owners of those companies.
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