In a rather myopic view of the problems facing American automakers, President Bush said yesterday that Ford and GM should focus on building more appealing cars and signaled that he is against helping them through a buyout.
I'm not a fan of government buy outs either, but this is a situation really caused by a lack of universal health care in this country. GM, for example has a built in adder of $1,525 in each automobile that roll down its assembly line for health care. Pension adds another $675, and although GM didn't have the foresight to see that defined pension benefits might hurt them down the road, not many other American manufacturers did either.
These costs are covered by the governments of most of their foreign competitors.
Maybe Bush is hoping Wal-Mart will start selling those new Chinese autos that are going to hit the market soon.
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