Perceptions of Detroit Are Miles From Reality

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Perception: Americans have been demanding the small cars that GM and Detroit refuse to build.

Reality: That's more perceptual junk. The reality is that most American consumers seek fuel economy only when pump prices are high. Take a look at what is happening now in the U.S. market for new vehicles. With average pump prices below $2 a gallon for regular unleaded, sales of small, fuel-efficient cars such as the Honda Civic, Toyota Corolla and Ford Focus have plummeted farther and more quickly than those in the general vehicle market.

The Civic that was hot in May 2008 with 53,299 sales was not in November with 17,690 sales, according to the Automotive News Data Center. Ditto the Corolla, 52,826 sold in May 2008 versus 21,807 sold in November; and the Focus, 32,579 sold in May versus 8,194 sold in November.

But Ford has been forced to restore two shifts and overtime work to meet demand for its re-engineered 2009 F-150 pickup truck . . . and Nissan is retooling its taxpayer-assisted, nonunion plant in Canton, Miss., to take on Detroit in the commercial truck arena.

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Perception: All Detroit needs is deep restructuring and federal bailout money for long-term viability.

Reality: Wrong. Detroit needs what America sorely needs -- a Congress with the leadership chutzpah to devise and implement industrial and energy policies that will help to keep native manufacturing industries alive. Detroit's problem isn't poor products or lack of products. It's a national government still wedded to the debilitating siren song of cheap gasoline. It's a nationally collapsed financial system. And it's governmental hypocrisy -- our willingness to pour tax dollars into foreign enterprises, most of them not unionized, while griping about doing the same for homegrown, unionized manufacturers largely responsible for building America's middle class.