US Auto Business in Decline as Americans Buy More Imported Cars

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The LA TIMES reports that Americans now buy more imported cars than those made at home. This must be an important milestone. The car business is a big business. It is also a complex business, and a high-tech business, with long supply chains involving hundreds of different industries and thousands of different skills.

But don’t worry, dear reader. All those people who used to be involved in the auto business will go into finance. That’s where the money is… Well, that’s where the money is when the country is in a credit bubble. But when the bubble pops, the money disappears. People who used to sell mortgages wish they could get jobs selling cars.

The US auto business isn’t dead yet. But with China just introducing its cars into the American market, it may not be long before it gives up the ghost. Of course, the auto business isn’t the only way to make money. But it was a good way to make money for a long time. And you have to wonder…if the US of A can’t be competitive in autos, what can it be competitive in?

Bill Bonner
The Daily Reckoning Australia

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Bill Bonner

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2 Comments on "US Auto Business in Decline as Americans Buy More Imported Cars"

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C
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Personally I’d rather have foreign built. I’ve had bad luck even with foreign cars built in the U.S. Being American, i’ve worked at enough American factories to see how seriously they take quality control. Summing it up, management, or leadership seems to think quality control is something that is built into the whole dynamic and so is not all that important. The naivety is constant, leadership does better to pretend they don’t know anything. It’s like the infamous email, I get so many, I must have deleted it by accident, or I don’t remember hearing that, the list goes on.… Read more »
kage
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It will be competitive in the export of violence and injustice for at least a few more years. Also white collar crime.

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