I'm glad you saw the NYT's article on the Chinese government's interest in electrical vehicle production. The point that is important to draw from this article is it is further proof that EVERY other country in the world supports their automobile manufacturing base. I was reading an article yesterday on CNN talking about whether we should care if GM dies and not surprisingly the majority of comments on the article stated that we should absolutely let them die and cited capitalism as the reason because that is an American core value. I like capitalism as much as the next guy, as it is the main reason for the standard of living that we presently enjoy. However, we should also realize that the rest of the world is not playing by the same rules. The Germans, French, Japanese, and Chinese all support their auto industry more than the US does. And I'm not talking about bailout money, I'm talking about financial support for research and development, and healthcare costs, just to name a few.
The debate that rages in this country about the pros and cons of saving the auto industry is a valid one. Nobody wants to put good money after bad as they say. A viable business model and a plan to return to profitability without government help is not too much to ask. However, we need to understand that this downturn in volume is like we've never seen before (for EVERY carmaker) and when volume comes back, and it absolutely will, the players left in the game will reap the rewards. And they will take their profits home with them - whether it is or .