Why The Car Industry Is So Vital

OP-ED By P. Wimsett

The building of cars is the number one industry in the US and other countries. This is why in a pandemic economy it has been protected by the government.

There’s more to it than that though. You need to able to travel to school or work. Then you have business conferences, expos and similar. Added to this, various aspects of the entertainment, travel & leisure industry/hotels, theaters and sports arenas…the list goes on and on. It’s all about people being at the right place when you need to be there. So, there is a definitely an argument to be made that transportation impacts ever other industry on some level.

But is domestic manufacture vital as an industry?

The History of American Car Making

The mass production of cars was famously begun by Henry Ford. He also created large plants or super factories as well as moving assembly line. This was the only way a Model T could be created every 24 seconds.

The superfactory infrastructure was also vital in getting the time down, having a glass factory and a steel mill as well as a number of other plants in the general vicinity. If you have to rely on deliveries the process breaks down.

There is an argument for assembling cars one at a time in a shed using parts (glass frames, radiators etc) but it would be very unlikely to make a profit. Some luxury sports cars are made this way. This business model relies on having a car ordered in advance of making it and these cars are by definition, luxury (not needed) meaning if they aren’t made the buyer can simply get a different car elsewhere.

If we’re only looking at vital cars, then we’re looking at affordable cars or vehicles built to a vital purpose like hauling goods to market. Affordable cars need to be mass produced not made to order. A modern car factory needs to work at 80% capacity just to break even. You also have the difficulty of maintaining working conditions in a small environment. So, a superfactory is better.

Well, this might be an exaggeration as it would be hard to visualize the big-name cars being “clinker-built.” It wouldn’t be safe, it wouldn’t be quick and it wouldn’t be economical. So, it could be said that the superfactory system is the only way.

As well as the factories you also need showrooms and forecourts (auto lots) as well as the annual motor-shows for the system to work. With motor-shows being cancelled (most notably the one in Detroit but there usually hundreds around the world) and car lot sales so restricted that sales in general are breaking down.

Detroit

To examine how vital the industry is, it is probably worthwhile to focus on the city of Detroit. What sort of city would it be without the Big Three-General Motors, Ford and Chrysler? And what would the US economy be without these three names? There are so many questions and because we are still living through it, so few answers as yet.

Although the Big Three are no longer the biggest names in car processing they are still big enough to the US economy to be protected.

So, this is where we are, in a non-industrialized state of limbo. For our own good this state of affairs cannot continue for that much longer. There is the health risk, true, but poverty in a country causes mental complications. How long can the US economy survive on handouts from the government, which is really barrowing against the future? No one knows, but it appears we’re going to find out.

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