Sunday, December 14, 2008

548 Defunct U.S. Motor Vehicle Manufacturers and the Schumpeterian Forces of Creative Destruction

There's an interesting Wikipedia listing of 548 "Defunct Motor Vehicle Manufacturers of the United States."

See a related Wikipedia listing here of "
creative destruction:"

"The economist Joseph Schumpeter popularized and used the term to describe the process of transformation that accompanies radical innovation. In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power."

Comment: More than 500 American automobile manufacturers failed over the last 100 years for one reason or another, or were acquired, primarily due to the Schumpeterian forces of "creative destruction." As far I know, not a single one of those auto manufacturers asked for, or was granted, government assistance, or received a government (aka taxpayer) bailout. Should there now be an exception for GM, Ford or Chrysler to get bailed out when none of the 548 defunct companies received assistance?

HT: Ben Cunningham


At 12/14/2008 11:28 PM, Blogger fgjkf said...

Let them go the way of the Dodo Bird. The consumer has spoken and they don't want what they're selling.

At 12/15/2008 10:41 AM, Blogger bob wright said...

r.e. :The consumer has spoken and they don't want what they're selling.

That really isn't accurate

What is accurate is that they can't produce vehicles in North America at a profit.

It is also accurate that many people choose to buy SUVs and pickups. Toyota's new truck plant in Texas is evidence that the transplants recognize this and want a piece of the action.

from the above link:

"9.3 million people worldwide bought GM vehicles last year [2007]. That’s more vehicles than any other automaker in the world sold. And in the U.S., which is the world’s largest market, GM sold more vehicles than any other manufacturer in 2007, and it has sold more than any other automaker to date in 2008.

In 2008, the Chevy Malibu was named North American Car of the Year, and the Cadillac CTS was Motor Trend’s 2008 Car of the Year. In 2007, the Saturn Aura and Chevy Silverado won North American Car and Truck of the year. Those awards are given and judged by automotive journalists.

At 12/15/2008 2:27 PM, Blogger bob wright said...

Also in the "they don't want what they're selling" department:

Toyota's $300M SUV plant in Tupelo is being put on hold.

Amazing. Another Japanese company building an SUV plant in the U.S. I thought only Detroit was too stupid to build things consumers don't want.

At 12/16/2008 4:33 PM, Blogger sethstorm said...

There is a difference this time. They would eliminate an entire way of building a car. Forget performance, but having lifestyle environmentalists dictate nothing more than an I-4.


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