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more on the auto industry from peter klein

Our evil twin, Organizations and Markets, has a post on the auto industry that resonates with what I wrote on Monday:

The proposed bailout of GM, Ford, and Chrysler overlooks an important fact. The US has one of the most vibrant, dynamic, and efficient automobile industries in the world. It produces several million cars, trucks, and SUVs per year, employing (in 2006) 402,800 Americans at an average salary of $63,358. That’s vehicle assembly alone; the rest of the supply chain employs even more people and generates more income. It’s an industry to be proud of. Its products are among the best in the world. Their names are Toyota, Honda, Nissan, BMW, Mercedes, Hyundai, Mazda, Mitsubishi, and Subaru.

Oh, yes, there’s also a legacy industry, based in Detroit, but it’s rapidly, and thankfully, going the way of the horse-and-buggy business.

Though Detroit will be bailed out, this may be the last time. As time passes, these forces will make the case for supporting Detroit almost nil.

Written by fabiorojas

November 26, 2008 at 4:33 am

Posted in economics, fabio

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