The collapse of the automobile industry isn’t just a Detroit problem anymore. February sales reports were devastating for automakers worldwide. …
Overall, the market for new cars fell by more than 1.1 million vehicles from February 2008, or a 41 percent decline.
Whether or not they work in the auto industry, the dismal posting is of concern to all taxpayers. The federal government is now a full partner in GM and Chrysler because of the more than $17 billion in government loans to those two companies. The government isn’t doing enough to protect that taxpayer investment.
The most important thing the Obama administration could do to boost auto sales is to pursue a more effective policy for thawing the credit markets. Too many would-be buyers are being turned away from dealerships because they can’t get car loans.
… Obama has taken the approach that the solution for what ails the domestic automakers is a heavier federal hand in running the companies and shaping their product line-up.
… What’s needed from Washington is not more advice on making cars, but more attention to breaking the credit freeze and giving consumers stronger tax incentives for buying vehicles.