When ever I hear those arguments I come back with the fact that you don’t have to look at the rest of the world to see how to be successful making cars, just look at how the other automotive companies in the US do it down south. They are not crying and begging for a bailout.
Whan you make this argument. keep in mind:
a.) the foreign automakers still import the bigger chunk of their cars from overseas.
b.) An auto manufacturer only designs and assembles the vehicle. The parts are made by “suppliers”, which could be in the US or could be in China. If you order your car seats from the US, let’s say a car seat will cost $1,000, but if you order the same car seat from China, it will cost $300.
c.) the Big 3 still make profit in Europe (although not sure about Chrysler), despite the fact that there they face extra competition from French and Italian cars. European car buyers are also much more picky, since cars generally cost more and the gasoline is twice as expensive.