Why We Should Buy American-Made Vehicles - Essay Example

Why we should buy American made vehicles over foreign vehicles? Globalization has brought immense changes in this world. Business is one area in which globalization has been successful in bringing enormous changes. The distance or gap between global markets has been reduced considerably as a result of globalization. In other words, it is easy for an American to get Chinese or Japan made products in American markets itself. International or cross cultural business has been increased a lot in the recent past because of globalization. According to Lieber and Weisberg (2002), “Globalization is a vital step toward both a more stable world and better lives for the people within it” (Lieber and Weisberg, p. 274). Many people refer globalization as Americanization rather than anything else. In their opinion, the concept of globalization was introduced by America and other capitalist countries to loot the wealth of other countries. However, recent statistics show that America failed to exploit the opportunities presented by globalization whereas China and India like countries were successful in exploiting it. Recent recession affected America more than any other country in the world. In short, globalization brought more harm than good to the Americans. Automotive industry is one business area in which globalization brought revolutionary changes. Even though America is one of the major car manufacturing countries in the world, majority of the Americans purchase foreign cars such as Mercedes Benz, BMW, Toyota, Honda, Nissan etc. The demand for American cars in American market is less compared to that for foreign cars. Huge American automobile manufacturing companies, such as General Motors, are struggling to survive in the car market at present. It should be noted that plenty of American car manufacturers have already reduced their number of employees and car production because of weaker demand. In short, globalization and subsequent developments in the business circles are causing huge problems to Americans now. American economy is struggling at present. Under the above circumstances, it is the duty of every American to give a helping hand to the revitalization of American economy. Purchasing of American made products is one way of helping American economic growth. This paper analyses the reasons why we should buy American made vehicles over foreign vehicles. According to Mark Karlin (2012), “The auto industry has a long history of providing sound jobs and contributing to economic prosperity in the U.S. Now it’s time for consumers to give back by choosing domestic cars instead of foreign ones” (Karlin). It is the duty of every American citizen to do everything possible to boost their country’s economy. No government can offer proper living standards to the people without the cooperation and support from the people. Personal choices and preferences should be kept on a corner while purchasing vehicles at least in recession times. We are all aware that in today’s global economy some parts on U.S. cars are from overseas, and even some models are assembled elsewhere. But the fact remains that a nation that abandons its core manufacturing base is committing itself to economic dependence on overseas corporations and countries (Karlin). American automobile sector is one of the largest employment providers in America. So, any problems that occur in this sector can cause huge damages to the employment prospects of Americans. It is the duty of every American to help the government in creating more employment opportunities. It should be noted that millions of American jobs have been flowing out of America in the form of outsourcing and offshoring of business. No country can develop properly if it fails to create employment opportunities domestically. There are millions of foreigners working America at present. In a heavily globalized world, it is difficult for America to restrict employment opportunities to foreigners. Under such circumstances, more job creation is the only way to reduce unemployment problems in America. Purchasing of locally made automobiles is one way of helping the government in creating more jobs. GM and Chrysler have already announced to shed almost 2,000 retail outlets to bolster the survivors. GM and Chrysler said. Reducing competition from stores with the same brands is supposed to allow the remainder to boost prices and profit, and to reinvest in their businesses to keep adding customers. That echoes the strategy of Toyota, the world’s largest automaker, in growing to second behind GM in U.S. market share. U.S. stores for Toyota and Honda Motor Co. each averaged more than 1,100 sales in 2008, almost three times as many as GM’s and Chrysler’s, consulting firm Grant Thornton found (Merx). It is really a shame to know that a foreign car manufacturer is selling more cars in America than the domestically made cars. It should not be forgotten that foreign car manufacturers are assembling or manufacturing their cars in cheap labour oriented overseas countries and introduce it to American market. America is comparatively an expensive labour oriented country and, hence, it is difficult for the foreign car manufacturers to assemble their car models in America. In a globalized market, price wars are often taking place. It is difficult for the foreign car manufacturers to manufacture their vehicle in American territories and stay competitive in the market by offering cheaper prices. In short, foreign car manufacturers are able to sell their products for cheaper prices in American market and hence domestically made cars are suffering a lot. While Americans are going after cheap foreign cars, they are forgetting the fact that they are causing problems to themselves. A few dollar savings while purchasing a foreign car may cost them big in near future itself. Fuel-efficiency, environmentally friendliness, and easy maintenance are some of the features that should be taken into consideration while purchasing a vehicle. However, many of the Americans have the habit of neglecting these factors in their strive after luxury. Foreign cars offer luxury whereas American cars offer economy. Foreign car manufacturers know the pulses of American consumers very well and they introduce both necessary and unnecessary features in their cars to attract American consumers. Many of the Americans fall victims of such luxuries offered by the foreign car manufacturers. One of the major reasons cited by Americans for purchasing foreign cars is the superior quality and performance offered by them. However, some of the recent statistics show that American made cars are not behind any of the foreign made cars in terms of quality and performances. Consumer Reports says that some Ford vehicles “now rival the best from Japan. In the latest J.D. Power dependability study, GMs Buick division tied with Jaguar for the top spot, beating out Lexus and Toyota. And in 8 of 11 car segments, a GM model came in as one of the top three vehicles (5 Reasons to Buy an American Car). These statistics clearly suggest that the doubts about the quality of American cars are baseless. In fact American cars are capable to compete with any of the foreign car models in a particular segment. Another reasons cited by Americans for purchasing foreign cars is the flexible payment option and after sales service offered by the foreign car manufacturers. “GM and Ford recently rolled out “payment protection plans,” at no extra charge, that will cover your monthly payment for several months if you lose your job. Fords plan covers up to 12 months of payments as high as $700 per month” (5 Reasons to Buy an American Car). In fact, Americans are getting better after sales service from American car manufacturers than foreign car manufacturers. Plenty of service centers are available virtually in every corner of America for servicing American cars. On the other hand, foreign car manufactures have service centers only in cities and prominent locations. American cars are offering huge price discounts and offers compared to foreign car makers. For example, The Ford Fusion, Chevy Malibu, Toyota Camry, and Honda Accord are similar cars which offer almost same quality and performance features. However, when it comes to the price discounts, one can clearly see the edge of Ford over other car makers. “Ford is offering rebates of up to $3,500 on the Fusion, while Chevy is offering 0 percent financing on the Malibu. Toyota, by contrast, is discounting the Camry by just $1,500, and Honda offers no discounts on the Accord” (5 Reasons to Buy an American Car). Purchasing of American goods is one way of showing patriotism. Europe is the largest car manufacturing region in this world. EU imports large number of vehicles from overseas markets. The above fact clearly suggests that many of the Europeans have lost faith in European made cars. A substantial portion of Europeans are interested in purchasing vehicles of foreign origin. A large number of vehicles sold out in Europe are from America. In other words, Europeans seem to have more confidence in American cars than the Americans. Americans should recognize these facts and should show more pride in owing domestically made cars. Many people have the illusion that owing a foreign good is a status symbol. There is no point in holding such beliefs. American technology is comparatively better than the technologies in other parts of the world. So, car manufacturers in other countries cannot compete with American car manufacturers as far as technological excellence is concerned. The proclaimed innovations in car manufacturing by foreign car manufacturers are actually the modifications of existing models rather than a new product. The federal "cash for clunkers" program -- officially known as the Car Allowance Rebate System -- offers $3,500 to $4,500 to people who trade in an old car for a new one with higher fuel economy. The subsidy is intended to increase vehicle sales, prop up the faltering American auto industry and make the nations car and truck fleet marginally more efficient (Car Allowance Rebate System (Cash for Clunkers). Obama’s Cash for Clunkers program is another reason for Americans to purchase American cars. This program is intended to revive American automotive industry which is on the verge of destruction. It should be noted that Cash for Clunkers program give cash incentives only to those consumers who purchase cars of American make. In other words, those who purchase foreign cars may not get any governmental assistance for exchanging their old car with a new one. Cash for Clunkers program may definitely rejuvenate American automotive sector if it gets enough cooperation from Americans. Japan is one of the prominent car sellers in American market. At the same time, one should not forget that the selling of American made cars in Japan is extremely small. Many people justify the selling of Japanese car in American market in the name of free trade. However, one should not forget that free trade should benefit both the countries in trade agreements. However, such things are not following at least in the car industry in America and Japan. Hence, nobody can blame Americans if they show more interests towards American made cars. Another argument in favor of buying Japanese cars by Americans is the myth that Japanese cars are superior to its American counter parts. In fact, Toyota and Honda were forced to withdraw thousands of its cars from international market because of some technical problems. “Toyota Motor Corp. recalled 2.17 million vehicles in the United States in 2011 to address accelerator pedals that could become entrapped in floor mats or jammed in driver’s side carpeting, prompting federal regulators to close its investigation into the embattled automaker”(Thomas). The case of Honda is also not much different. They also faced similar problems in the recent past. In short, the hypes about the superior performance of Japanese made cars are slowly diminishing. So, it is better to purchase American made vehicles to avoid future problems. Japanese cars are made in the US anyway and provide jobs for Americans. It doesnt matter that Japanese cars are made in the United States. Yes, this is a convenient excuse for those of you who bought Japanese but even if the car is made in the US, the profit still leaves the country. And the foreign car manufacturers that do build cars in the US are given enormous advantages in tax concessions and are often outright given the land on which they build their factories. Plus their plants are always in the lower-wage states. These circumstances conspire to allow foreign car manufacturers to produce cars at less cost, even here in the U.S., giving them an unfair advantage (The Argument for Buying American Cars) Another argument in favor of buying Japanese cars is that many of the Japanese cars are made in the US and, hence, Americans are getting jobs. However, it should not be forgotten that the profits earned by the Japanese car makers are going out of America. Uncontrolled capital outflow from American economy is not good for Americans. Americans are already suffering job loss and capital outflow in the forms of outsourcing and offshoring of business by American companies. Capital outflow from the automotive sector may intensify the economic problems in America. “ABCs Good Morning Americas anchor, Diane Sawyer, began a "Made in America" pledge this year, saying if every American spent an extra $3.33 on U.S.-made goods, it would create almost 10,000 new jobs in the country” (Price). Job creation is not only the duty of the government but the duty of the public also. Government’s efforts to increase job opportunities may not succeed without public cooperation. Buying and selling like economic activities should be increased at any cost in America to escape from recession according to the views of renowned economist Paul Krugman. At the same time, Americans should try to buy as much as American products possible. Buying of foreign products may not help American economy much as American capital outflow may takes place in such cases. To conclude, Americans should make some changes in their purchasing habits while they take decisions about purchasing a vehicle. They should give preference to American vehicles when they take any purchasing decisions. It is the responsibility of Americans to help the government as much as possible in job creation. Since automotive sector is one of the prominent employment providers in America, it is the duty of every American to help this sector as much as possible. America’s economic growth is directly linked with its ability to protect American capital. At present, uncontrolled American capital out flow is taking place in the forms of outsourcing offshoring etc. Since foreign car makers operating in America are keen in taking the profits to their home country, American economy may not benefitted while an American purchase a foreign car. Plenty of myths and hypes are spreading about the superior quality and performances of foreign cars over American cars. In reality, most of these claims are baseless since American car manufacturing technology is capable of competing with any other such technologies in the world. President Obama has already declared some cash incentives for those who purchase American made cars. Moreover, Americans may get better after sales service from American car makers than from other car makers. All these factors clearly point towards the necessity of purchasing American made cars by the Americans. Works Cited “5 Reasons to Buy an American Car”. 2009. Web. 30 August 2012. http://money.usnews.com/money/blogs/flowchart/2009/04/01/5-reasons-to-buy-an-american-car “Car Allowance Rebate System (Cash for Clunkers)”. Web. 30 August 2012. The New York Times. Thursday, August 30, 2012. Karlin, Mark. “Americans Should Buy U.S. Cars, Period”. 2012. BusinessWeek. Web. 30 August 2012. http://www.businessweek.com/debateroom/archives/2009/02/americans_should_buy_us_cars_period.html Lieber, Robert J. and Ruth E. Weisberg. “Globalization, Culture, and Identities in Crisis”. 2002. International Journal of Politics, Culture, and Society, Vol. 16, No. 2. Print. Merx, Katie and Keith Naughton. Dealer math in GM, Chrysler Cuts is more Sales at Fewer Stores. 2009. Web. 30 August 2012. http://www.bloomberg.com/apps/news?pid=20601209&sid=aVXrNfdjNdQQ&refer=transportation Price, Wayne T. “Buy American Gets New Emphasis”. USA Today. 9 April 2009. “The Argument for Buying American Cars”. Web. 30 August 2012. http://drive-american.org/issues.htm Thomas, Ken. “Toyota Recalls 2.17 Million Vehicles For Gas Pedal Problem”. 2011. Web. 30 August 2012. http://www.salon.com/2011/02/24/us_toyota_recall_4/ Read More