Quote:
Originally Posted by Tcoat
It all boils down to what sells. All the governmental interference is just noise.
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Except that price and supply are a huge part of what sells. You can't buy what you can't afford, and you can't buy what isn't offered for sale.
The government put their thumbs on the scales, and then just sat on them for good measure.
The government requirements for fleet-wide MPG standards caused the auto manufacturers to abandon many popular models. The station wagon didn't die because no one buys them, it died because it dragged down the numbers the manufacturers had to meet to avoid costly fines.
Light trucks like the S-10 and Ranger disappeared because they weren't enough cheaper to make than a full-size and didn't get enough better mileage to help their CAFE numbers. (Simplified explanation) Normally they'll produce pretty much anything that turns a profit, but when you're trying to clear the ever-taller hurdles the government puts in front of you, you have to make some sacrifices.
I'm not saying the government is solely responsible for all the things that bother me about the auto industry, but they're certainly playing more than a minor role in it.
It's not simply that big American cars are harder to drive in European cities (though they are - you'll see lots of the small Fords there, but virtually no American trucks or sedans) European regulations are even stricter.
When the government creates regulations that increase the cost (punitive taxes) certain models cost more than people are willing to pay. You can buy one of two vehicles that have exactly the same functionality for your needs, but one's a car and costs $5000 more because it's classified as a car, and the other is a truck and thus doesn't get the punitive tax for the same MPG.
It's not that the consumer is truly free to choose. You can go right or left but if you choose left I'll hit you with a stick. That's not a free choice.
The government is absolutely changing the outcome.