Below The Beltway

As the American auto industry continues to flounder in its competition with overseas heavyweights such as Honda and Toyota, people are beginning to realize that it isn’t that easy to define an “American” car company anymore.

Sen. Lamar Alexander has backed a measure to outlaw burning of the American flag and supported a move to recognize English as the national language. He also takes what he calls a pro-American stance on issues related to the U.S. auto industry, but his view doesn’t sit well in Detroit.

Alexander believes that for the sake of jobs and economic growth, Detroit’s automakers have no choice but to embrace the forces of globalization. His view, echoed by many of his congressional colleagues, reflects a growing acceptance of the swelling numbers of Japanese, German and Korean autos built and sold in the United States.

Foreign-based automakers employ 101,000 people, according to the Association of International Automobile Manufacturers, a District-based lobbying group for the overseas automakers. In the next three years, these manufacturers will invest $9 billion in new factories, adding 9,000 more jobs.

This growth helps explain why scarcely a murmur of discontent has been raised — outside of Michigan — over a potential alliance between General Motors Corp. and two foreign automakers, Nissan Motor Co. of Japan and Renault SA of France. It also provides insight into why Congress has resisted pleas from Detroit’s Big Three to turn their high labor and health-care costs into a national priority.

“There’s a new definition of the American auto industry,” said Alexander, a Republican from Tennessee. “Twenty-five years ago, it was the Big Three companies in Detroit. Now the definition is any company that makes a substantial number of cars and trucks in the U.S. and has a big payroll here, pays big taxes here and buys supplies here.”

Supporters of Detroit’s automakers say the changing view is partly the result of partisan politics, but others say U.S. sentiment has shifted gradually in line with the realities of the global auto market. Today, Chrysler is part of a German company. Nissan is constructing a new North American headquarters in Tennessee, where it already has a car assembly plant. Alabama is home to major manufacturing facilities of Mercedes-Benz, Honda Motor Co. and Hyundai Motor Co. In all, foreign manufacturers operate 16 assembly plants on American soil, with a 17th opening soon, compared with 48 run by U.S. automakers

The change in attitude is easy to explain. All over the United States, companies such as Mercedes, Honda, Toyota, and Hyundai are building plants and employing Americans……and then there’s the countless number of Americans employed by dealerships selling those cars.

Of course, Detroit still comes crying to Uncle Sam:

The Detroit automakers, however, contend that the pressure from overseas should raise alarms in Washington. The U.S. companies, struggling to revive their fortunes by slashing costs, benefits and payrolls, are troubled by what they perceive as an unsympathetic ear from Congress and the White House. They say the lack of a U.S. auto policy is putting them at a disadvantage to their fast-rising foreign rivals.

“If you look around the world, most countries have a version of economic patriotism,” said Robert Lutz, GM vice chairman in charge of global product development. “They are proud of their own industries. The U.S. is the only major country that, if anything, has negative economic patriotism. I think some people in the United States, in leading government circles, actually detest the American automobile industry. They don’t like us.”

Lutz said foreign automakers have been “very clever” in building political support for their U.S. operations. He said their decisions on where to locate plants are not based only on economic factors but also on how many representatives and senators the carmakers can win to their side.

But that misses the point completely. Foreign car companies are succeeding in the United States for one very simple reason — they are building cars that people want to buy and, in cases such as Honda, they have a reputation for reliability that American car companies seem to have forgotten completely.

I haven’t driven an American car since I got rid of the Pontiac I had in law school six years ago. Since then, its been Honda all the way and I don’t see any reason to go back. All three Honda’s I’ve owned were built in Marysville, Ohio. That Pontiac I mentioned was built in Ontario, Canada. Tell me again which one is the American car built by American workers ?

And, by the way, that Honda tradition continues…..as of yesterday, Kellie and I are the proud owners of a 2007 Honda Accord EX-V6.