One Brick Short

Looking around the world, it looks like the environmentalist’s dream of fewer vehicles is becoming a reality.

In a world that blames the credit crunch and car sales crisis solely on the United States, everyone from Opel in Europe to Hunan Changfeng in China is asking for bail out.

Meanwhile, traditional American-supported car companies, like Opel, Suzuki and Mazda, are seeing their American partners sell out to grab cash and keep their domestic rear-end fascia afloat.

In Shanghai, according ot the Associated Press, “China’s still-young car manufacturers are also appealing for their government’s help amid a sales slump.
That support, they say, could come in the form of subsidies for technology development, easier-to-meet standards and better protection from intensifying competition.“

Seems the Chinese automakers believe theirs is the last “booming market” and that foreign car companies are coming after the Chinese business, threatening home-grown industry. They want bail outs, loans, tariffs, any support they can get.

Hmmm, foreign competition threatening the domestic production…sound familiar?

According to the AP, most Chinese automakers are state-owned and get support from their local government owners. They also benefit from requirements that foreign automakers operate through joint ventures controlled by Chinese partners. China’s total auto sales rose 11 percent in the first 10 months of this year and are forecast to be up about 8 percent for the full year, down from the 18.5 percent increase seen last year.

Among the most vocal critics of Beijing’s auto policies is Li Shufu, chairman of Geely Automotive, who has long accused Beijing of failing to nurture the industry and of imposing safety and environmental standards. “Most of the standards were an adoption of foreign ready ones or equivalents that did not conform to Chinese reality,“ Li told a recent automotive industry forum in Shanghai.

In Tokyo, AP tells us that Ford partner, Mazda, spent $184 million to buy back 6.8 percent of its own shares. Several other companies bought smaller stakes. Ford is slashing its stake in Mazda from 33.4 percent to 13.8 percent.

On Monday, GM said it would sell its remaining 3.02 percent stake in Suzuki Motor Corp. for $230 million.

Although Japanese automakers have also been hit by the global slump, especially the slowdown in the key U.S. auto market, they have fared relatively better than their U.S. rivals because of their reputation for making smaller, fuel-efficient models.

And, in France, the AP reports that the European Union’s industry chief believes “extraordinary measures” are justified to keep car maker Adam Opel GmbH in business and shore up the entire car industry, blaming problems on U.S. car companies and the U.S.-spawned financial crisis.

EU Industry Commissioner Guenter Verheugen—ist das nicht einen gutes Deutches namnen?—warned that the collapse of General Motors German-based Opel car maker could trigger a domino effect that could bring down other car companies in an industry that directly employs some 12 million people.

European carmakers are calling for EU governments to follow the U.S. and give them billions of dollars as sales slump and they face new rules forcing them to reduce greenhouse gas emissions from cars.

Hmmm, sound familiar?

Opel was not to blame for its troubles, officials said. America is the bad guy, as always. Opel, officials said, is a competitive and innovative business that fell victim to the errors of its U.S. parent General Motors.

France has also backed a car sector bailout but EU regulators are more sceptical, warning that subsidizing one industry would damage fair competition and hurt the economy.

Hmmm, sound familiar? Maybe a little too familiar?