The Detroit News reports: Bush can take steps to help auto industry. The idea here is: it costs more for U.S. manufacturers and that's why the cars aren't as good. In order to compete, the thinking is, U.S. manufacturers cut corners to make the prices inline with Toyota, Honda, etc. In other words, for Ford to build a Camry, it would cost a lot more than an actual Camry.
It's a lousy argument. Build good, reliable cars and people will buy them. Price is certainly a factor, but if it was the only factor how did Lexus come in and kick ass on Cadillac, Lincoln, Mercedes-Benz, and others? Was it only price? (In fairness, Lexus's's's's flagship LS400 was cheaper than the competition at the time, but that's not the case now.)
Japan worked very hard at building reliable cars that lead people to continue to stay in the family and even expand to the luxury brands where prices and profits are higher.
It all comes down to what are you building and if it is any good. Price is an issue, sure, but reliability is what F'd Detroit.
Based on the recent issue of Consumer Reports it appears Detroit is taking steps to become as reliable as the benchmarks from Japan. That's the major step in the right direction. Step 1: Build more reliable vehicles. Step 2: Rebuild reputation. Step 3: Profit.
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