As a Maryland lawmaker, I believe we should look at assistance for the Big Three automakers not only nationally, but at the state level. There are ways we can responsibly protect and support the Maryland jobs dependent on the automotive industry, ranging from those at dealerships to manufacturers such as Allison Transmissions in White Marsh. All these businesses produce quality products and services and provide good-paying jobs that support families and help our local economy.
First let me say that I consistently buy and drive American vehicles. My pickup is a 1994 four-cylinder Ford Ranger with 230,000 miles on it. Our second vehicle is a 2007 G6 Pontiac. Both get great gas mileage. These vehicles, and others I have owned, proved to me that the stereotypes that American cars are not economical or reliable are totally false. The American auto industry ought to receive some kind of assistance.
My solution for aiding the industry is to suspend the 6 percent car titling fee for a 90-day period on the purchase of new American-built cars and trucks from the Big Three. This would not include foreign automakers which produce cars in America, nor would it include Ford, GM or Chrysler products built outside the United States. (All vehicles come with a certificate of origin that documents where the vehicle was built.) Also included are vehicles with the Allison transmission, which is built in Maryland, and any vehicle having a major component built in Maryland.
People have asked me why I do not include all makes and models. It should be obvious that during tough financial times we must do what is politically smart, not what is politically “correct.”
This legislation would aid the local economy and the local taxpayer more than any bailout Washington proposes. Maryland can financially afford to forgo this small amount of revenue ($1,500 – $2,000 per vehicle) if in the long run it helps to stabilize local business and prevent layoffs during this economic downturn. Indeed, if we do not stimulate auto sales in Maryland, then the revenue will not be there for the state anyway (in the form of purchases not made, and therefore not taxed). The cost of failing dealerships and the resulting job losses — in the form of unemployment benefits as one example — would far outweigh whatever “lost income” for the state.
I do not support a government bailout, throwing even more of a burden onto the American taxpayer, taking more and more money out of his pocket. My proposal does just the opposite. It stimulates the economy without the government (really, the taxpayer) having to lay out a dime. And the $2,000 savings on the titling fee is $2,000 in the pocket of the taxpayer, which can be used as a down payment on a new car.
The Big Three should take a hard look at the rebuilding blueprint that Harley-Davidson used to regain its place of prominence in the market. Simply, the company builds higher-quality motorcycles, while not attempting to produce 100 percent of anticipated demand. Right now, the American automakers are building more cars than they can sell. They should be building no more than 75-80 percent of what they believe they can sell, leaving the additional 20-25 percent to be built to order. This approach would take the burden off the local dealers, who are now forced to take on more cars than they know they can sell.
I hope that Gov. Martin O’Malley not only supports this plan, but also recommends that nationally all 50 states use this as model legislation — a tool to strengthen our economy and preserve the American automotive industry by using a hands-off approach, rather than the “handout” approach being considered in Washington.
Rick Impallaria is a Republican delegate representing Baltimore and Harford counties. He can be reached at [email protected].
