The Global Automobile Industry and the Decline of American Economic Power

Automotive news today focused on the possible purchase of Fiat -- Chrysler  (FCA Group) by Great Wall Motors, Ford working on a deal with a Chinese company to make all-electric vehicles in China rather than Mexico, and US states vigorously competing for a Toyota-Mazda plant that promised the hiring of 4,000 workers. Chinese interests have already gained control of Volvo, and to their credit have been excellent stewards of that venerated brand. Several years ago Tata from India took possession of British Jaguar, and have also done an excellent job in protecting jaguar's reputation. The center of the automotive world is clearly moving to south and east Asia, because that is where the market is growing and will continue to do so for the immediate future. It is also moving to autonomous self driving vehicles as fast as the technology and law can take us, since now it is recognized that home delivery of goods can be facility by self driving cars.

Is recent automotive history a critical lens from which too view the decline of the West? Of course, Oswald Spangler wrote on this topic of Western decline in the 1920s, in the wake of the cataclysm of World War I.  Since the late 1960s the USA has experienced a gradual economic decline with reference to the rest of the world, and its auto industry no longer dominates this important manufacturing sector. With China now possibly acquiring FCA -- primarily because of SUV production -- is the decline becoming irreversible. Perhaps so! What does this mean for the long-term economic prospects of the U.S.?