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Opinion

Layoffs expose bigger problems

Hasan Rivzi
Opinion Columnist

The Ford Motor Company recently announced their restructuring plans, which include the laying off of 30,000 employees and the closing of 14 manufacturing plants. The two other American automobile manufacturers, General Motors and Chrysler, aren't exactly in robust shape either. 

It would be easy for the Big Three to point the finger at the Japanese or the indifferent consumer who doesn't care much for "economic patriotism." 

Perhaps American automobile manufacturers should take a long look in the mirror and realize they have no one to blame but themselves. 

Open an issue of Consumer Reports Magazine, and you can see why companies like Toyota and Honda are taking a large portion of the market share that traditionally belonged to American automakers. Japanese cars consistently outperform the American cars in the ways that matter most to many consumers -- gas mileage and reliability. Although American cars are much more reliable than they were 25 years ago and are generally more reliable than most German cars, they still are not on par with Japanese cars. 

Another factor that makes American automakers uncompetitive is they have entered into unrealistic contracts with unionized workers. It is great that working people can unionize and demand better wages and benefits. That being said, the United Auto Workers Union isn't exactly Cesar Chavez. When you are paying an autoworker more than $100,000 a year with extremely generous benefits, even after retirement, you are bound to fail. 

Some people buy American cars because they feel it is the patriotic thing to do. Although they have good intentions, they are doing so in vain. It is getting more and more difficult to even figure out what is an American car and what is not. 

Many Japanese automobile manufacturers make their cars in the United States. The difference is that they are not paying ungodly amounts to their workers. 

If you drive a Honda, chances are it was made in Alabama or Ohio rather than Japan. The Dodge Ram is assembled in Saltillo, Mexico, while the Toyota Tacoma is assembled in Fremont, Calif. So which car is more American? 

In the 1990s, American carmakers made the sport utility vehicle their cash cow while ignoring other parts of the market. 

Gas prices were low and everyone was buying SUVs. The American auto companies failed to plan for the future. They had to know that gasoline wouldn't always be so cheap and that when fuel prices increased, the SUV craze would weaken. They didn't have much of a contingency plan for the future, if they had one at all. 

Though it is sad that these once great and profitable companies have been reduced to this, change is inevitable. If you are wise, the only thing you should be concerned with when buying a car is its value -- not its nameplate.

Rizvi, an opinion columnist for The Daily Cougar, 
can be reached at hasanalirizvi@gmail.com.