Well, there are some pretty big bets on the future of the car in the United States. Today, our government has insisted on very high CAFE standards, which means that cars will have to get significant mpg ratings, in fact, it will be mandatory for them to get 54.5 mpg within the next two decades. This means the cars will be made of a lighter material, or much smaller, and that certainly opens the door for budget cars with very small engines made in China and imported here, and I don’t think I’ll be able to keep those. out with some kind of protectionist act through union lobbyists in Washington DC.
Why do I say you ask? It’s simple, General Motors is selling a ton of cars in China, and if we shut down our markets, they’ll wipe China out of the picture, not to mention the fact that a fair amount of the components that used to be made here in the United States are made in China. and they’re being put into our cars made here. Now since Chinese car dealers are coming here, one might wonder; How well will these Chinese-made cars sell in the United States? Well, they should sell pretty well. Do you remember the Honda car? They sold like hot cakes and got amazing mileage.
Also keep in mind that Warren Buffett has invested in BYD Motors, a Chinese automaker, and Warren Buffett does nothing for his health when it comes to his money. He can bet those cars will sell here, and they should sell pretty well if China can maintain its reputation for selling quality cars. Still, what if these Chinese-made cars are tainted with a bad reputation before they even get here? That is very possible. Also, China isn’t necessarily hitting a 1000 when it comes to safe products.
For example, consider lead-based paint on toys, poisonous pet food, chemical-laden drywall, or protein problems in livestock feed that send those canned goods to our market. Still, it gets worse, and if you think the Chinese cars will make it here without any issues, safety issues, or health risks, you might be wrong. Let me give you a case in point.
There was an interesting article in the Wall Street Journal on August 16, 2012 titled “Asbestos in Chinese Cars Australia Recalls 23,000 Vehicles, Rebacking an Industry Eager to Export” written by Gavin Lower. This is quite problematic as more and more Americans are keeping their cars longer, because the interiors get quite hot and those materials break down over time. In other words, it’s not much fun, it could kill a fair number of Americans, and it could cost a pretty penny for all the cancer treatments that try to save these people, which is problematic considering the government is paying for anyone who doesn’t you can afford health insurance.
Therefore, I am quite concerned. I’m not against competition, and I think US automakers need competition, and I’m upset about crony capitalism and the bailout of Detroit. However, if we’re going to get over-regulated here, which I’m not in favor of, then we’d better make sure we don’t allow imported cars that carry health risks. That is simply unacceptable.
In the past, some of Detroit’s cars have been somewhat flawed and contained a lot of planned obsolescence, but they never put anything in the cars that would deliberately kill you, and China should know better than this. There is no excuse for it. In fact, I hope you will please consider all this and think about it.