The Decline of the American Auto

If you haven’t been living in a closet over the past decade or so, it should be apparent that the glory days of the American automobile are indeed long over. Especially in these times of economic turmoil and high gas prices, the trend has become even more apparent. General Motors is bleeding money like a hemophiliac, Ford is struggling, and Chrysler appears to be on its last leg. Instead of the “classic” American auto on the road, foreign autos such as Toyota, Hyundai, and Honda are starting to dominate America’s roadways. What is the cause of this trend?

The first culprit, in my opinion is the ever increasing price of gas. It seems that the price of oil reaches a new high on a daily basis, which in turn hurts consumers at the gas pump. Traditional American vehicles, especially high performance, V8 vehicles (what we are known for) are not exactly economical at $3.30 a gallon. Instead, imports from the above mentioned companies have taken the cake in regards to fuel efficiency. 4 cylinders and smaller V6’s are definitively cheaper to own than say, a beefy 350 (cubic inch) Chevy motor. Someone with a family and other financial responsibilities would rather get 25-30 mpg, rather than 15-20 mpg.

American automakers have attempted to retake the market by bringing back classic muscle car names from the past, such as Dodge’s new “Challenger SRT 8” model. The new Challenger has classic “box like” styling with classic weight (4200lbs) and power (425 horses). Chevrolet has brought back the classic Camaro namesake, as well. The trouble with these cars and many others is that the average American cannot afford them. If this were 1975, sure, everyone could afford these cars, as gas and the car itself were dirt cheap. But Joe Blow cannot afford to pay $40K for a car and on top of that to keep it filled up.

Congress and the EPA have also instituted new “mpg” specifications of 35 mpg by 2020. It is rumored that American automakers will start to work towards this new standard starting in 2012. Ford even has a top end Mustang model in the works for a turbo charged V6 to meet the new standards. When I read that, I immediately thought back to the 1981-1982 Mustang that had a top horsepower rating of 125 horses. I’m not sure about you, but I’m not ready for the V6 Mustang to be Ford’s namesake car in the market. Personally, I enjoy the thrill of a classic American auto. I enjoy getting in my “mach 1” and putting “the peddle to the metal” and acquiring whiplash (if I could marry my car, I probably would).

Granted, I may be spouting out a new tune in 10 years when I’m carting around my numerous prodigies (that's a whole new set of issues) in the latest and greatest minivan (it will be a cold day in hell when you see me driving one of those). I’m young and my responsibilities are minimal, hence my slight bias in all of this. But neither I nor America is ready for the thrill of driving to be taken away from us. I would want future generations to enjoy the thrill of good ol’ American muscle. At the same time though, I am not a fan of warring over oil or opening up ANWAR for drilling; I am aware that certain sacrifices must be made. What those sacrifices are, well if I had the answer, I would be a billionaire.

Fall From Grace

I’ve said it once and I’ll say it again a million times over: Never underestimate the predictability of stupidity. The media has been in an uproar over what will surely become known as the “Client #9 Scandal.” Actually, if it becomes known as that, I want the copyright or trademark. Anyways, if you do not know what “client #9” means, I am referring to (former) New York Governor Eliot Spitzer’s fall from political and moral grace. Spitzer apparently spent large sums of his own money in procuring call girls from an elaborate prostitution ring that crossed national boundaries. By some estimates, it appears as if he spent $80,000 for 8 “sessions.” The “client #9” moniker is from the criminal affidavit where evidently Spitzer is identified as this mysterious client.

Spitzer has yet to be charged or even indicted on any charges, but charges could be forthcoming after a grand jury is convened to hear the logistics of the case. Of course, the first thing that comes to mind when you hear “sex scandal” is the Bill Clinton-Monica Lewinsky affair that occurred a decade ago. But the difference this time is that Spitzer’s actions were indeed illegal, Clinton’s were not. Prostitution is illegal in New York and Washington D.C. (where at least one of these encounters took place).He may also face charges under the Mann Act, which prohibits the transport of prostitutes between state borders. Plus, he very well may be brought up on charges of “structuring,” or attempting to disguise enormous sums of money from federal regulators by making a series of money transfers in small amounts (i.e. if you move over $10K in money from your bank account, the federal government knows about it). Based on those facts, the legislature of New York threatened to impeach Spitzer, which is why he resigned.

This is obviously not the first time that a powerful-rich (his wife is going to take him for half of it, trust me, I know women) man has had an issue with sleeping around, but the media is having a “hay-day” with this because Spitzer was a politician known for his "above average ethics." Before he became governor last year, he was New York’s attorney general for the previous 8 years. During his time as attorney general, he cracked down on “big money” in the realm of Wall Street (he didn’t make too many friends on Wall Street, as demonstrated by the fact that basically everything came to a halt for a few minutes in lieu of various celebrations when the news was leaked). What is the lesson learned from all of this?

There are a few lessons, actually. The first of which is that no matter who you are, you are not above the law. Coming from a state where many past (and current) governors have run into legal issues, I am firmly aware of the fact that no one really cares who you are, especially the federal government. Second, Americans do not like hypocrites. If you really want to irritate your constituency, do something the complete and udder opposite of what you are known for, i.e. abiding by the law. Now, if he was the governor of say, Alaska, no one would care, but in fact he was the governor of New York- the figurative center of the country. Plus, it’s the nation’s biggest media market, i.e. don’t get caught or the whole world is going to know. I am not going to elaborate on the morality of Spitzer’s actions (it would get “R rated” at this point), as that is up to the individual to decide.