While Ford, GM, and Chrysler fly expensive jets to beg for money to keep the UAW happy so that they’ll keep contributing millions to the Democrats from the Big Three’s billion dollar losses, a minor fourth ceased existance this week.
That’s right, the Yugo is no more.
This tiny, ugly, and unreliable car existed for several decades. It was the pride of Yugoslavia. It was the butt of jokes in the US. I got to ride in one I think while I was in college. A girl I knew owned one. During the ride it felt like I was in a Nascar race. Every turn felt like she was dodging oncoming vehicles. Every bump in the road jolted your teeth. I was anxious, nervous, and sometimes very scared. I was quite relieved to get to our destination. She never topped 45 miles per hour. Not once. I don’t think it went that fast. She said she liked it because it was exciting to drive. I believe her. I never needed that type of excitement driving around town so I never got one.
Yugo never sold that many in the US because they could never get their plants efficient enough to meet demand. As demand waned, they just didn’t make as many. Simple supply and demand. Fiat bought Yugo a while back and did nothing to upgrade the car or market it. Demand continued to fade and Fiat finally decided to give up. Now, this is where the lesson for the US Congress and Senate kicks in. To meet the existing demand for the Yugo in Europe, Fiat will be making be manufacturing the Punto. I’m sure this will be a small, cheap, fuel efficient car that mimics the Yugo. The demand for small cars is probably growing right now. The name brand of “Yugo” has been damaged by years of shoddy construction. Fiat will be able to make a new car, new brand, with no baggage, in a much more efficient plant.
Do people really think just because Ford, GM, or Chrysler is not making the vehicle that the demand for new cars will go away? It’s not a question of meeting demand, it’s a question of who meets that demand. If all of the Big Three survive, and start producing cars that meet demand, then they’ll be just fine. If not, someone else will. Hopefully that someone else will be domestic as well. That’s why I don’t think anything Congress does now will affect the long term situation of the Big Three. The only choice Congress has right now is to prolong Detroit’s demise unless the Big Three are willing to adapt, or save some cash for better use.
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