Half-a-century ago, Ford blundered big-time when they misread the market for a new brand.  Edsel was a huge flop.

Now there are plenty of new brands, but less of a market – maybe none – for tired old ones.  In spite of that, there’s a multi-billion dollar effort to prop-up tired old General Motors.

Clearly this effort to protect the auto workers’ union (UAW), who worked very hard during the last election, is going to be expensive.  And it’s not directed toward protecting shareholders or creditors, so the entire cost must be spread against the number of UAW “jobs-to-be-saved.”  The cost for GM alone is at $40 billion plus.  An optimistic estimate counts 40,000 UAW jobs surviving this mess.

So if we just gave each union member $1 million and let GM sink, the dollar cost would be the same.  Instead, we’re trying to prop-up the company that produces Chevrolet, Cadillac, Buick, Pontiac, GMC, Saturn, Saab, Hummer, Vauxhall, Opel and Holden.  Eleven brands, only the first two of which will survive in GM ownership.

The money is being spent, GM is dying, and those guys won’t get their million apiece.

How Did It Get This Bad?

One can see three stages in the decline.

The first from about 1946-1956 offered MGs and Jaguars to a few sporty-car consumers who were seeking variety.

Then from about 1956-1967 Volkswagen opened up a new market for sturdy, high quality econo-cars.

For the most part, Detroit ignored these innovative newcomers and gave us more of the same-old.

But the third phase, starting in the late sixties really changed things.  Japanese producers Toyota, Nissan, Honda and others started to offer style, performance, value and dependability in new ways.

They employed American experts like J.D. Power (consumer satisfaction) and Edwards Deming (statistical control of quality manufacture).  Each of these gentlemen had offered their services to the Americans, and had been spurned.

The Asians talked the talk and walked the walk.  They dominated ratings such as Consumer Reports, while American brands often occupied the lower rankings during the next 35 years.

Mercedes-Benz and Jaguar started to chip away at the high-priced car business over fifty years ago.  Along the way, they were joined by BMW, Audi, Porsche, Ferrari, Maserati, Acura, Lexus and Infiniti.

Cadillac, the brand that owned the quality car business in America, lost ground.  Lincoln almost died.  The Chrysler Imperial brand did expire.

Even San Franciscans, who strongly support our president’s policies, don’t want to buy his cars.  The dealerships for GM cars (and Chrysler) in San Francisco disappeared because too few buyers wanted their cars. 

And on their best day, the American manufacturers are only striving for parity with their competitors.  Parity won’t do it!  GAME OVER.

Quick Impressions of Some New Models

At a recent test day, I was able to do brief test drives of a tasty range of new cars.  Here are some impressions:

Honda Insight (Hybrid):  A perfect “appliance” car; very well presented, useful and price-worthy.

Pontiac G8 GXP:  A bold brute of a Corvette powered sedan.  Fast, strong and capable, with absolutely NO charm.

Hyundai Genesis coupe:  Think back to the VW GTI or Nissan 240SX.  This one has the potential to be a much loved cult car.  Quality performance and handling at a keen price.

Ford Mustang, Shelby version:  Perhaps a car for someone else, but I found it bulky and unattractive in spite of its excellent performance.  For the same $50,000 or less, you could buy a refined Porsche Boxster or Cayman.

Mercedes-Benz C300 sedan:  One of Mercedes’ entry level cars, this one reminds me of all the worthy virtues of MB cars.  A fine chassis, quality structure and finish, and lovely road manners.

Infiniti G37 metal-top convertible:  All the excellence of the G-series Infiniti – including a competitive price – now in open-air form;

Nissan CUBE:  A new-generation “box” car that I was prepared to like.  Superb to drive – a little too cutesy to look at.

Ford Fusion Hybrid:  A very well tailored and likable Ford sedan that will hold its own against any Toyota, Nissan or Honda.  One for the home team!

Aston Martin DB-9 convertible:  An absolutely beautiful, classic design and a delight to drive.  But is this V12 enough better than the charming V8 Aston Vantage to justify the price premium?

Jaguar XK-8 coupe:  A smooth, sophisticate for under $100,000 that makes you wonder what you could possibly buy that you’d like better.

Toyota Venza:  New crossover that is typically plain – vanilla, like most Toyotas, but also competent and useful – you won’t complain.

Mitsubishi EVO along with the Subaru STI:  These phenomenal enhancements of basic models make you wonder how they squeeze so much out of a small package.  For $40,000, go like a Ferrari (but still look like an econo-car)