TO THE EDITOR:
From the perspective of Detroit, renegotiating the North American Free Trade Agreement is like rearranging the deck chairs on the Titanic (“Barra, Marchionne, Hinrichs meet with Pence amid discord over NAFTA,” autonews.com, Nov. 27). The reality is that the traditional American auto industry is sinking into dark, cold water.
The Detroit Small 3 have declined in many global markets under pressure from local competition and poor profitability.
Japanese and Korean automakers have conquered America, and it is not long before China does the same. Could you ever imagine these Asian players giving up on global markets?
How many of the top 20 global Tier 1 suppliers are American? Just a few, and they are all available for sale.
America is headed the same way as the U.K. — lots of local automakers, all foreign-owned. It is for these that NAFTA is important.
The root cause is the American consumer — addicted to cheap gas and obese automobiles and oblivious to the world revolution in electrification. It is electrification and autonomous vehicles that will give China its future 30 percent share of the U.S. vehicle market. Undoubtedly, their robots will make them in America.
ALAN MARTIN, Managing Partner, MergerChoices, Bradenton, Fla. MergerChoices advises clients on growth strategy through mergers and acquisitions in the global automotive industry.