The public, and government, failed to see that the market share of domestic automakers was eroding, or if they did see, they failed to act. In particular, governments continued to allow foreign countries to send their cars here even though protectionists in those countries prevented North American producers from access to their markets. Why this was allowed is completely beyond me.

                    The public in North America became frustrated with domestic designed cars that rusted, were unattractive, and unreliable. Frankly, this was only partly true as I believe there are lots of owners of foreign cars that had problems as well, but that was the public perception. Certainly, in the 1970’s, many domestic cars were often shoddy and unattractive – remember the “rusty Fords.”  The public began buying foreign cars by the boatload.

Foreign manufacturers could produce a high quality product at a much lower cost without unions and paying much lower third world wages.   When foreign manufacturers built plants in North America, they operated largely without unions and these placed domestic auto makers at a significant disadvantage.

The domestic auto makers, like the Dodo, seemed stuck in neutral and unable to evolve to meet the challenge of foreign cars. We know what happened to the Dodo.

Today GM and Chrysler teeter on the brink of insolvency. They will not disappear completely, but they are now reaping the benefit of buyer dissatisfaction and apathy, and foreign competition that has a stranglehold on the car market, and is gaining in the truck and van market. Still, our governments refuse to insist that our auto makers have equal access to markets in Japan, and Korea.

The public, for its part, can’t see past their own driveway and recognize that their neighbors jobs, and the industrial tax base of North America, is dependent on the auto industry and that when they buy a domestic vehicle their dollars do double duty.

Now the Chrysler workers have their backs against the wall. The CAW members must either cave in to demands for significant pay cuts, some 19% beyond what they have already given up, or Fiat will walk away from their takeover bid.  

Probably Chrysler workers will have to accept reality and work for far less. This will mean they will have much less money to spend in their communities and this will impact our economy at large.

Be that as it may, the Canadian government and the U.S. governments need to play hardball with Japan and Korea and insist on fair access to foreign domestic auto markets. If this cannot be negotiated, stiff tariffs on all cars built offshore in countries not allowing fair access to their auto sectors should be implemented.

For the consumer, it is time to wake up and support our own industry while we still have one. There are many great vehicles available from the domestics – take a serious look before you buy a Honda. When you buy a domestic vehicle you support your neighbour’s job, the domestic industrial tax base, and the infrastructure that allows us to design and produce cars here in North America instead of only assembling them. When you buy a domestic car your dollars will do double duty. Think about it.  Our economy, our neighborhoods, our future depends upon it.   

                                                Malcolm Watts