Germans Talk Big, Carry a Big Schtick

I’m not sure why The Wall Street Journal thinks Germany is the next Japan in the U.S. new car market. For one thing, the market itself is lying in the gutter, naked, hungover and bleeding. In this environment, cutting capacity, protecting market share and not losing too much money (a.k.a. eliminating all but essential expenditure) is the only sensible plan. In fact, this article– “Europeans Raise Pressure on Detroit”– would be better entitled “Detroit’s Dead, VW’s Arrogant, BMW’s Hopeful and The Japanese are Hunkering Down.” Scribe Kate Linbaugh is content to take VW’s pre-crash, snicker-worthy “1m Vehicles or Bust” proclamation at face value, and extrapolate from there. “VW is investing in its first U.S. factory in two decades and expects to triple U.S. sales to one million vehicles by 2018. BMW is introducing a new small car and expanding its distribution network.” Never mind those previous, abortive efforts to make the U.S. Germany’s Land of Plenty (excluding Bimmer’s two-mode hybrid SUVs or VW’s Phaeton). “This time, European car makers insist more diverse product lines, healthy marketing budgets and access to nonunion labor can overcome past stumbles. VW is developing specifically for the U.S. several new models, including a family sedan. [VW Routan shown, irony be damned.] A new American manufacturing operation will free it from the currency swings that have hampered its U.S. sales in the past.” Do I detect a thinly-veiled attempt to say Japan and now maybe even Germany have a better U.S. business model than Detroit; a theory made on the cusp of December’s disastrous sales numbers to create maximum embarrassment for Motown? Well duh.