Arnold Schwarzenegger Tells Michigan to "Get Off Your Butt"

Amidst massive changes in the domestic auto industry (and Michigan's economy as a result), an increasing need for new energy sources and conservation, as well as stiff competition from import vehicles, Arnold Schwarzenegger tells the Detroit-based auto industry to "get off your butt." He made the comment to highlight the fact that domestic automakers still lag significantly behind foreign cars and trucks when it comes to fuel efficiency. His comment comes as buyers are looking to purchase Chrysler, GM is going through major restructuring, and Ford has announced a major recall of one of their popular SUVs (see "500,000 Ford SUVs at Risk for Engine Fires"). If ever the domestic automakers needed a wake-up call, now would be the time. The question remains whether it is too little too late for Michigan's economy, which fluctuates between 49th and 50th for economic growth among the 50 states.

While Arnold's comment certainly wasn't made in a vacuum, it actually is a reaction to a large billboard in Detroit. "Schwarzenegger's comments came as he responded to a billboard that went up last month along Interstate 75 in Detroit that criticized him for mandating vehicle emission caps in California that will be costly for Detroit automakers to meet." (Shepardson) Arnold Schwarzenegger believes that the emission caps proposed in California will ultimately help save Detroit. He states that he believes in the power of US technology, would like Detroit to sell their cars in California, and that by supporting the emission caps, he is forcing Detroit to advance with the rest of the world.

Emphasizing Arnold Schwarzenegger's message, the Detroit Free Press is reporting that less than 50% of Americans now purchase vehicles from the domestic automakers. "Despite a good start to the year by General Motors Corp., fewer than half of American consumers - 48.9% - bought new cars and trucks in the first quarter this year from Detroit automakers, according to retail sales data provided exclusively to the Free Press by the Power Information Network." (Webster) As more states follow California's lead, and the pressure for increased full-efficiency mounts, the domestic auto industry will continue to fail to compete unless more drastic measures are taken. If Governor Schwarzenegger's optimism proves correct and American technology and innovation saves Detroit, America may once again be a large exporter of vehicles. However, there is an incredible amount of work that needs to be done in Detroit first.

Sources:

Shepardson, David. The Detroit News. "Schwarzenegger to Michigan: Get off your butt."
http://www.detnews.com/apps/pbcs.dll/article?AID=/20070412/AUTO01/704120343/1148/rss25

Webster, Sarah. Detroit Free Press. "Fewer than 50% buy US vehicles."
http://www.freep.com/apps/pbcs.dll/article?AID=/20070414/BUSINESS01/704140355/1002